Amazon Area Manager Assessment Inventory Management & Control 1

Question 1

What does the term 'cycle counting' refer to in warehouse inventory management?

Accepted Answer

Continuously counting a portion of inventory on a rotating schedule

Answer

Cycle counting involves regularly counting a subset of inventory items on a rotating basis to maintain ongoing accuracy without shutting down operations.

Question 2

Which inventory management method assigns costs based on the assumption that the most recently purchased items are sold first?

Accepted Answer

LIFO (Last In, First Out)

Answer

LIFO assumes the last items purchased are the first items sold, which can affect reported profits during periods of changing costs.

Question 3

What inventory accuracy rate does Amazon typically target for its fulfillment centers?

Accepted Answer

98% or above

Answer

Amazon targets approximately 98% or higher inventory accuracy to ensure customer orders can be fulfilled reliably and defects are minimized.

Question 4

What is 'dead stock' in a fulfillment center context?

Accepted Answer

Items that have not sold or moved for an extended period

Answer

Dead stock refers to items that haven't sold or moved for a prolonged period, tying up capital and warehouse space without generating revenue.

Question 5

Which KPI directly measures the percentage of physical inventory that matches warehouse management system records?

Accepted Answer

Inventory Accuracy Rate

Answer

Inventory Accuracy Rate compares physical inventory counts against system records to measure how reliable the data is for operational decisions.

Amazon Practice Test

Amazon Practice Test

Amazon Area Manager Assessment Inventory Management & Control 1