CPT Inventory Management & Supply Chain

Question 1

What does 'JIT' stand for in manufacturing inventory management?

Accepted Answer

Just-In-Time

Answer

Just-In-Transit

Answer

Job In Time

Answer

Job Initiation Technology

Question 2

Which inventory review system places replenishment orders when stock falls to a predetermined reorder point?

Accepted Answer

Continuous review system

Answer

Periodic review system

Answer

ABC analysis system

Answer

LIFO system

Question 3

In supply chain management, 'lead time' refers to:

Accepted Answer

Time between placing an order and receiving it

Answer

Time a manager spends supervising workers

Answer

Time to complete a quality inspection

Answer

Time to prepare a production schedule

Question 4

Which inventory valuation method assumes the first items purchased are the first items sold or used?

Accepted Answer

FIFO

Answer

LIFO

Answer

Weighted Average

Answer

Specific Identification

Question 5

What is 'safety stock' primarily maintained to address?

Accepted Answer

Unexpected demand increases or supply delays

Answer

Defective products found during inspection

Answer

Regulatory compliance requirements

Answer

Reserved stock for preferred customers

Question 6

ABC analysis in inventory management categorizes items primarily by:

Accepted Answer

Value and usage frequency to prioritize management effort

Answer

Alphabetical order for easy retrieval

Answer

Physical size and storage requirements

Answer

Supplier location and delivery distance

Question 7

Economic Order Quantity (EOQ) is the order quantity that:

Accepted Answer

Minimizes total inventory ordering and holding costs

Answer

Equals average monthly demand

Answer

Matches the supplier's minimum order requirement

Answer

Equals the maximum warehouse capacity