CLA - Certified Logistics Associate Inventory Control Questions and Answers 1

Question 1

What is the primary purpose of cycle counting in an inventory control system?

Accepted Answer

To regularly verify and maintain high levels of inventory record accuracy without stopping operations.

Answer

To calculate the total value of all inventory for annual financial reports.

Answer

To identify the fastest-moving products for re-slotting.

Answer

To replace the need for a warehouse management system (WMS).

Question 2

A warehouse manager wants to apply different levels of control to various products. They decide to focus the most effort on the 20% of items that constitute 80% of the inventory value. Which inventory control method should they use?

Accepted Answer

ABC Analysis

Answer

First-In, First-Out (FIFO)

Answer

Just-In-Time (JIT)

Answer

Economic Order Quantity (EOQ)

Question 3

Which of the following best describes the role of 'safety stock' in an inventory management strategy?

Accepted Answer

It is extra inventory held to mitigate the risk of stockouts caused by uncertainties in supply and demand.

Answer

It is inventory that has been set aside due to damage or quality control failure.

Answer

It refers to the oldest stock that must be sold first to prevent expiration.

Answer

It is the minimum amount of stock required to trigger a new purchase order.

Question 4

A warehouse stores perishable goods, such as food products. Which inventory valuation and rotation method is most critical to implement to minimize spoilage and waste?

Accepted Answer

First-In, First-Out (FIFO)

Answer

Last-In, First-Out (LIFO)

Answer

Just-In-Time (JIT)

Answer

ABC Analysis

Question 5

A logistics associate is receiving a shipment and finds that the quantity of items is less than the quantity listed on the packing slip. What is the immediate and most appropriate inventory control action?

Accepted Answer

Document the discrepancy on the receiving paperwork and notify a supervisor.

Answer

Enter the packing slip quantity into the WMS to save time and adjust it later.

Answer

Add the received quantity to the shelf and assume the missing items will arrive later.

Answer

Refuse the entire shipment and instruct the driver to return it to the sender.

Question 6

In inventory control, the metric that compares the quantity of an item recorded in the warehouse management system (WMS) to the actual, physical quantity on the shelf is known as:

Accepted Answer

Inventory Record Accuracy

Answer

Inventory Turnover

Answer

Order Fill Rate

Answer

Dock-to-Stock Time