CRCST Inventory Control 2 — Questions and Answers
Question 1: Which inventory management method prioritizes dispensing the oldest stock first to minimize product expiration?
- LIFO (Last In, First Out)
- FIFO (First In, First Out) (Correct answer)
- JIT (Just-In-Time)
- ABC analysis
Correct answer: FIFO (First In, First Out)
FIFO ensures that older items with earlier expiration dates are used before newer stock, reducing waste.
Question 2: What is a 'par level' in central service inventory management?
- The maximum quantity of an item ever ordered
- The minimum quantity that triggers an order and the target replenishment quantity (Correct answer)
- The number of items discarded each month
- The price per unit of a supply item
Correct answer: The minimum quantity that triggers an order and the target replenishment quantity
Par level defines the minimum stock threshold that triggers reordering and the quantity needed to return to optimal levels.
Question 3: When conducting a physical inventory count, which action ensures accuracy?
- Counting only high-cost items
- Counting items while simultaneously restocking shelves
- Halting all movement of items in the area being counted (Correct answer)
- Estimating quantities based on previous orders
Correct answer: Halting all movement of items in the area being counted
Stopping item movement during a physical count prevents discrepancies caused by items being added or removed mid-count.
Question 4: Which term describes the cost incurred when a supply item is unavailable and a procedure must be delayed or substituted?
- Carrying cost
- Stockout cost (Correct answer)
- Ordering cost
- Shrinkage cost
Correct answer: Stockout cost
Stockout cost refers to the operational and financial impact when a needed item is out of stock.
Question 5: A CS technician notices that several instrument sets consistently return with unused items. What is the BEST inventory-related response?
- Increase the quantity of those items in the set
- Analyze usage data and consider reducing set content (Correct answer)
- Reorder more of those items immediately
- Document the unused items but take no action
Correct answer: Analyze usage data and consider reducing set content
Reviewing usage data and rightsizing set contents reduces unnecessary sterilization costs and instrument wear.
Question 6: What does 'economic order quantity' (EOQ) help a central service department determine?
- The most expensive items in inventory
- The optimal order quantity that minimizes total ordering and carrying costs (Correct answer)
- The number of sterilization cycles run per day
- The expiration date of sterile supplies
Correct answer: The optimal order quantity that minimizes total ordering and carrying costs
EOQ balances ordering frequency costs against storage and holding costs to find the most cost-effective order size.
Question 7: Which of the following is considered a 'carrying cost' in inventory management?
- The price paid to a vendor per unit
- Storage space, insurance, and spoilage expenses (Correct answer)
- Labor cost to place a purchase order
- Cost of emergency deliveries
Correct answer: Storage space, insurance, and spoilage expenses
Carrying costs include all expenses related to holding inventory such as storage, insurance, obsolescence, and spoilage.
CRCST Inventory Control 2
Which inventory management method prioritizes dispensing the oldest stock first to minimize product expiration?