Inventory Management & Supply Chain Flashcards
7 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory Management & Supply Chain flashcards as text
What is the Economic Order Quantity (EOQ) model designed to determine?
Answer: The order size that minimizes total ordering and holding costs
EOQ calculates the optimal order quantity that balances ordering costs against inventory holding costs to minimize total expense.
A restaurant manager wants to reduce the risk of single-source supplier dependency. The BEST strategy is to:
Answer: Qualify and maintain relationships with at least one backup supplier
Qualifying backup suppliers ensures business continuity if the primary vendor cannot fulfill orders due to shortages or disruptions.
Which of the following is a KEY benefit of using a perpetual inventory system over a periodic system?
Answer: It provides real-time visibility into stock levels at any time
A perpetual inventory system continuously updates stock records with each transaction, providing real-time visibility without waiting for scheduled counts.
What is 'invoice reconciliation' in the context of restaurant supply chain management?
Answer: Verifying that invoice charges match the purchase order and received goods
Invoice reconciliation ensures the vendor's invoice matches both the original purchase order and the actual quantities and quality received.
A manager notices significant variance between beginning inventory plus purchases and ending inventory. This calculation is used to determine:
Answer: The cost of goods sold (COGS) for the period
The formula (beginning inventory + purchases − ending inventory) calculates the cost of goods sold during a given period.
In a restaurant supply chain, 'lead time' refers to:
Answer: The elapsed time from placing an order to receiving the delivery
Lead time is the total time between submitting a purchase order and receiving the goods, which must be factored into reorder timing.
Which practice BEST supports accurate inventory tracking when staff members handle receiving duties?
Answer: Designating trained receivers and requiring signatures on delivery logs
Designating trained receiving staff with mandatory documentation creates accountability and reduces errors or theft at the delivery point.