CSA Inventory & Supply Management 2 — Questions and Answers
Question 1: When storing isomalt, which condition is most critical to prevent it from becoming unusable?
- Keep it away from humidity and moisture (Correct answer)
- Store it below 40°F at all times
- Expose it to indirect sunlight to maintain clarity
- Keep it in open containers for airflow
Correct answer: Keep it away from humidity and moisture
Isomalt is hygroscopic and will absorb moisture from the air, causing it to become sticky, cloudy, and unusable.
Question 2: A sugar artist needs to reorder tylose powder. Which factor should most influence the reorder point?
- The supplier's business hours
- Lead time from the supplier plus average daily usage (Correct answer)
- The cost per unit at bulk pricing
- The expiration date of current stock
Correct answer: Lead time from the supplier plus average daily usage
The reorder point is calculated using lead time combined with average daily usage to ensure stock doesn't run out before the new order arrives.
Question 3: Which inventory valuation method assigns the cost of the most recently purchased supplies to items sold or used first?
- FIFO (First-In, First-Out)
- LIFO (Last-In, First-Out) (Correct answer)
- Weighted Average Cost
- Specific Identification
Correct answer: LIFO (Last-In, First-Out)
LIFO assumes the last items purchased are the first used, which can affect cost calculations especially in periods of price inflation.
Question 4: A sugar artist discovers that purchased petal dust has settled and separated in storage. What is the best corrective action?
- Discard it immediately as it is contaminated
- Shake or stir the container before use to re-homogenize (Correct answer)
- Add water to reconstitute the mixture
- Mix it with fresh petal dust to dilute the problem
Correct answer: Shake or stir the container before use to re-homogenize
Settled petal dust is normal and can be restored by shaking or gently stirring the container before use.
Question 5: What does 'safety stock' represent in a sugar art supply inventory system?
- Stock kept in a fireproof safe
- Extra inventory buffer held to prevent stockouts from demand spikes or delivery delays (Correct answer)
- Supplies reserved exclusively for client orders
- The minimum quantity required to receive a bulk discount
Correct answer: Extra inventory buffer held to prevent stockouts from demand spikes or delivery delays
Safety stock is a buffer of extra inventory maintained to protect against unexpected increases in demand or supplier delays.
Question 6: When receiving a shipment of food-grade luster dust, which step is most important before accepting the delivery?
- Immediately shelve the product to free up counter space
- Check that containers are sealed, undamaged, and match the purchase order (Correct answer)
- Test a sample batch on a sugar piece before signing
- Verify the color matches the catalog photo exactly
Correct answer: Check that containers are sealed, undamaged, and match the purchase order
Inspecting for damaged seals, container integrity, and purchase order accuracy prevents accepting defective or incorrect products.
Question 7: A sugar artist uses approximately 2 lbs of gum paste per week. The supplier has a 5-day lead time. What is the minimum reorder quantity needed to avoid a stockout, assuming no safety stock?
- 1 lb
- 1.43 lbs (Correct answer)
- 2 lbs
- 5 lbs
Correct answer: 1.43 lbs
At 2 lbs/week (approximately 0.286 lbs/day), a 5-day lead time requires roughly 1.43 lbs to cover the gap between ordering and receiving.
CSA Inventory & Supply Management 2
When storing isomalt, which condition is most critical to prevent it from becoming unusable?