CVS Inventory Management and Store Operations 1 — Questions and Answers
Question 1: When a CVS store associate notices that a product on the shelf has fallen below the minimum stock level, what is the FIRST action they should take?
- Inform the store manager immediately
- Check the stockroom for additional inventory before placing an order (Correct answer)
- Place a reorder request right away without checking the back
- Ignore it and wait for the next scheduled inventory review
Correct answer: Check the stockroom for additional inventory before placing an order
Associates should always check the stockroom first, as product may already be on hand and simply needs to be brought to the floor.
Question 2: What does the acronym FIFO stand for in CVS inventory management?
- First In, First Out (Correct answer)
- Fast Items, Full Orders
- Frequent Inventory, Fixed Output
- First Invoice, Final Order
Correct answer: First In, First Out
FIFO stands for First In, First Out, meaning older stock should be placed at the front and sold before newer stock to prevent expiration.
Question 3: A CVS colleague receives a shipment but notices one box is damaged and some products appear compromised. What should the colleague do?
- Accept the shipment and place damaged items on clearance
- Accept everything and note it in the daily log later
- Refuse the damaged items and document the discrepancy on the delivery receipt (Correct answer)
- Place damaged goods in the stockroom and inform the manager at shift end
Correct answer: Refuse the damaged items and document the discrepancy on the delivery receipt
Damaged items should be refused and the discrepancy documented on the delivery receipt to initiate the proper returns/claims process.
Question 4: Which of the following best describes a planogram in a CVS store?
- A schedule for employee shifts
- A visual diagram showing how products should be arranged on shelves (Correct answer)
- A plan for store renovations and layout changes
- A weekly sales goal chart posted in the break room
Correct answer: A visual diagram showing how products should be arranged on shelves
A planogram is a visual merchandising tool that specifies exactly how and where products should be displayed on shelves.
Question 5: When conducting a cycle count in a CVS store, what is the PRIMARY purpose?
- To identify which employees are not meeting productivity goals
- To verify that the physical inventory matches the system records for specific sections (Correct answer)
- To determine which products need to be marked down for clearance
- To restock shelves that have been depleted during the week
Correct answer: To verify that the physical inventory matches the system records for specific sections
Cycle counts are partial inventory checks done regularly to ensure that what the system shows on hand matches what is actually on the shelf or in the stockroom.
Question 6: A customer asks a CVS associate to check if a product is available that is not on the shelf. What is the BEST approach?
- Tell the customer the item is out of stock without checking further
- Check the stockroom and the store's inventory system before giving a definitive answer (Correct answer)
- Suggest the customer try a competitor store immediately
- Write down the customer's name and call them when the item arrives
Correct answer: Check the stockroom and the store's inventory system before giving a definitive answer
The best approach is to verify in both the physical stockroom and the inventory system to give the customer accurate information before suggesting alternatives.
Question 7: At CVS, which of the following is a common reason for inventory shrinkage?
- Overstocking popular items on shelves
- Employee theft, shoplifting, and administrative errors (Correct answer)
- Stocking items according to the planogram
- Running weekly sales promotions on select products
Correct answer: Employee theft, shoplifting, and administrative errors
Inventory shrinkage results from theft (internal and external) and administrative errors such as miscounts, mislabeling, or receiving errors.
CVS Inventory Management and Store Operations 1
When a CVS store associate notices that a product on the shelf has fallen below the minimum stock level, what is the FIRST action they should take?