Inventory Management & Control Flashcards
7 cards from real Amazon Area Manager Assessment practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory Management & Control flashcards as text
Which fulfillment center process involves verifying the quantity and condition of received goods against a purchase order?
Answer: Receiving and Stowing
Receiving and stowing involves checking incoming shipments against purchase orders for accuracy and condition, then placing items in designated bin locations.
What does 'shrinkage' refer to in fulfillment center inventory management?
Answer: Inventory loss due to theft, damage, administrative errors, or vendor fraud
Shrinkage encompasses all forms of inventory loss including theft, damage, counting errors, and vendor discrepancies, directly reducing profitability.
An Amazon Area Manager wants to reduce carrying costs. Which action would most directly accomplish this goal?
Answer: Reducing excess inventory to the minimum needed to meet demand
Carrying costs include storage, insurance, and capital costs; reducing excess inventory directly lowers these ongoing expenses.
What is a Warehouse Management System (WMS) primarily used for?
Answer: Tracking and controlling inventory movements within a warehouse
A WMS tracks inventory locations, movements, and transactions within a warehouse to optimize space utilization and operational efficiency.
Which metric measures how quickly inventory is sold and replenished over a given period?
Answer: Inventory Turnover Ratio
Inventory Turnover Ratio (calculated as COGS divided by Average Inventory) indicates how efficiently inventory is being managed and sold through.
When planning inventory levels for a new product category, what should an Amazon Area Manager prioritize?
Answer: Forecasting demand using historical data, seasonality, and promotional plans
Effective inventory planning requires demand forecasting that incorporates multiple inputs like historical trends, seasonal patterns, and upcoming promotions to prevent stockouts or overstock.
What is 'safety stock' designed to protect against in fulfillment operations?
Answer: Unexpected demand spikes or supply chain delays
Safety stock is buffer inventory maintained to protect against variability in demand or supplier lead times, ensuring continued fulfillment during disruptions.