CIM Technology & Inventory Software 3 — Questions and Answers
Question 1: Which type of inventory software module uses historical sales data and statistical models to predict future demand?
- Demand forecasting module (Correct answer)
- Accounts payable module
- Slotting optimization module
- Cycle count module
Correct answer: Demand forecasting module
Demand forecasting modules apply statistical algorithms to historical data to generate forward-looking demand predictions.
Question 2: A company uses a cloud-based WMS with a SaaS pricing model. What is a key ADVANTAGE over an on-premise system?
- Complete control over data server location
- Lower upfront capital expenditure and automatic software updates (Correct answer)
- Guaranteed faster processing speeds
- No dependency on internet connectivity
Correct answer: Lower upfront capital expenditure and automatic software updates
SaaS WMS eliminates large upfront licensing and hardware costs, and updates are managed by the vendor automatically.
Question 3: What is the purpose of a 'lot tracking' feature in inventory management software?
- Tracks parking lot usage at distribution centers
- Links inventory batches to production or receipt records for traceability (Correct answer)
- Monitors the number of open purchase orders per vendor
- Calculates optimal lot sizes using EOQ formulas
Correct answer: Links inventory batches to production or receipt records for traceability
Lot tracking associates inventory batches with specific receipt or production records, enabling recalls and expiration management.
Question 4: In ERP inventory modules, what does 'two-way matching' validate before approving an invoice for payment?
- Purchase order and invoice (Correct answer)
- Invoice, purchase order, and goods receipt
- Invoice and shipping manifest
- Purchase order and vendor contract
Correct answer: Purchase order and invoice
Two-way matching compares the purchase order and vendor invoice to verify quantities and prices align before payment is approved.
Question 5: Which inventory technology uses light-directed systems to guide warehouse pickers to correct bin locations?
- Pick-to-light (Correct answer)
- Voice picking
- RF scanning
- Autonomous mobile robots
Correct answer: Pick-to-light
Pick-to-light systems use LED displays mounted on bins to direct pickers to the correct location and quantity, reducing errors.
Question 6: When evaluating inventory software vendors, which metric best measures how well the system handles increasing transaction volumes over time?
- User adoption rate
- Scalability (Correct answer)
- Mean time to repair (MTTR)
- Customization depth
Correct answer: Scalability
Scalability measures a system's ability to maintain performance as transaction volume, user count, and data size grow.
Question 7: A barcode scanner reads a UPC code on a product. Which database record is immediately updated in a modern POS-integrated inventory system?
- Vendor master record
- On-hand inventory quantity for that SKU (Correct answer)
- Open purchase order for that item
- Safety stock level for the warehouse
Correct answer: On-hand inventory quantity for that SKU
Scanning a UPC at POS triggers a real-time decrement of the on-hand inventory quantity for that SKU in the inventory database.
CIM Technology & Inventory Software 3
Which type of inventory software module uses historical sales data and statistical models to predict future demand?