CFA Inventory & Resource Management 2

Question 1

What is the main advantage of using a digital inventory management system over a paper-based system in field operations?

Accepted Answer

Digital systems provide real-time updates, reduce errors, and improve data accessibility

Answer

Digital systems are always less expensive to implement initially

Answer

Paper-based systems are inherently less reliable than any digital alternative

Answer

Digital systems eliminate the need for physical inventory counts entirely

Question 2

When allocating field resources across multiple project sites, which factor should be prioritized FIRST?

Accepted Answer

Critical needs and project priority rankings

Answer

Alphabetical order of the site names

Answer

Proximity of sites to the main office

Answer

The personal preferences of individual field associates

Question 3

A field associate is responsible for maintaining calibrated testing equipment. How often should calibration records typically be reviewed?

Accepted Answer

According to the manufacturer's recommended schedule or organizational policy

Answer

Only when equipment appears to malfunction

Answer

Once per year regardless of usage frequency

Answer

Only before major audits or inspections

Question 4

What is the Economic Order Quantity (EOQ) model designed to determine?

Accepted Answer

The optimal order quantity that minimizes total inventory holding and ordering costs

Answer

The maximum amount of inventory that should ever be stored on-site

Answer

The minimum quality standard that purchased supplies must meet

Answer

The economic value of current inventory holdings for balance-sheet purposes

Question 5

Which practice helps prevent resource waste and ensures accountability in field supply management?

Accepted Answer

Implementing a check-out/check-in system with individual accountability records

Answer

Allowing team members to take supplies without documentation

Answer

Ordering maximum quantities to avoid any possibility of stockouts

Answer

Centralizing all supplies at a single location regardless of field needs

Question 6

During a field assignment, an associate notices that certain materials are approaching their expiration date. What is the appropriate action?

Accepted Answer

Flag them for expedited use, disposal per protocol, or return to inventory management

Answer

Use them immediately without following standard procedures

Answer

Continue storing them until the next scheduled inventory review

Answer

Donate them to other teams without documenting the transfer

Question 7

What is cycle counting, and why is it beneficial for field operations?

Accepted Answer

A continuous audit technique where subsets of inventory are counted on a rotating basis

Answer

A method of counting all inventory at once during a facility shutdown

Answer

A way to calculate depreciation on field equipment over time

Answer

An annual reconciliation of all financial and physical assets