CHP Inventory & Supply Management 2 — Questions and Answers
Question 1: Which inventory method assigns the cost of the most recently purchased supplies to items consumed first?
- FIFO
- LIFO (Correct answer)
- Weighted average
- Specific identification
Correct answer: LIFO
LIFO (Last-In, First-Out) assumes the most recently received items are used first, affecting cost calculations.
Question 2: A housekeeping department tracks a product that costs $8 per unit with 200 units used monthly. Annual carrying cost is 20% of unit cost. What is the annual carrying cost per unit?
- $0.80
- $1.60 (Correct answer)
- $16.00
- $19.20
Correct answer: $1.60
Annual carrying cost per unit = $8 × 20% = $1.60 per unit per year.
Question 3: What does a 'stockout' event indicate in supply management?
- Supplies have exceeded their expiration date
- A required item is unavailable when needed (Correct answer)
- Stock has been over-ordered
- Items have been removed from the approved vendor list
Correct answer: A required item is unavailable when needed
A stockout occurs when a needed supply item is completely depleted and unavailable for use.
Question 4: Which practice best prevents supply pilferage in a housekeeping operation?
- Ordering supplies in bulk to reduce shortages
- Limiting storeroom access and using sign-out logs (Correct answer)
- Keeping all supplies on open shelving in hallways
- Allowing staff to self-report usage informally
Correct answer: Limiting storeroom access and using sign-out logs
Restricted storeroom access combined with documented sign-out logs deters theft and creates accountability.
Question 5: When establishing par levels for guest room amenities, which factor should be given the MOST weight?
- Supplier lead time only
- Historical consumption rates and occupancy trends (Correct answer)
- Staff preferences for specific brands
- The number of storage rooms available
Correct answer: Historical consumption rates and occupancy trends
Par levels should be based primarily on actual consumption data and occupancy patterns to ensure adequate supply without overstocking.
Question 6: What is the purpose of a Material Safety Data Sheet (MSDS/SDS) in a housekeeping supply room?
- To record the purchase price history of chemicals
- To provide hazard information, safe handling, and emergency procedures for chemicals (Correct answer)
- To track which staff members have used each chemical
- To document supplier contact information
Correct answer: To provide hazard information, safe handling, and emergency procedures for chemicals
An SDS (formerly MSDS) provides critical safety information including hazards, proper handling, PPE requirements, and emergency response for chemical products.
Question 7: A hotel housekeeping manager notices linen inventory shrinking faster than expected. Which step should be taken FIRST?
- Immediately reorder double the normal quantity
- Conduct a physical inventory count and compare to records (Correct answer)
- Switch to disposable linens
- Blame laundry staff and issue warnings
Correct answer: Conduct a physical inventory count and compare to records
A physical count compared to records is the first step to determine whether discrepancies are due to loss, misplacement, or record errors.
CHP Inventory & Supply Management 2
Which inventory method assigns the cost of the most recently purchased supplies to items consumed first?