E-Commerce Development Inventory Management

Question 1

What is a SKU in e-commerce inventory management?

Accepted Answer

A unique alphanumeric identifier assigned to each distinct product variant

Answer

A sales tracking utility used to measure revenue per product line

Answer

A system knowledge update protocol for syncing databases

Answer

A standard kit unit representing a bundled product package

Question 2

What does 'safety stock' refer to in inventory management?

Accepted Answer

Extra inventory kept on hand to prevent stockouts due to demand or supply fluctuations

Answer

Products stored in a secured, locked warehouse area

Answer

Inventory reserved exclusively for product recalls and customer returns

Answer

Stock allocated specifically for wholesale and B2B customers

Question 3

Which inventory valuation method assigns the cost of the most recently purchased items to cost of goods sold (COGS)?

Accepted Answer

LIFO (Last In, First Out)

Answer

FIFO (First In, First Out)

Answer

Weighted Average Cost

Answer

Specific Identification

Question 4

What is a reorder point in inventory management?

Accepted Answer

The inventory level at which a new purchase order should be triggered

Answer

The maximum quantity of inventory that should be held at any time

Answer

The point at which excess inventory is marked down for clearance sale

Answer

The number of days until an out-of-stock product is replenished by a supplier

Question 5

What does 'dead stock' mean in e-commerce?

Accepted Answer

Unsold inventory that is no longer expected to generate sales

Answer

Inventory that has passed its expiration date and must be disposed of

Answer

Products that are backordered and awaiting delivery from a supplier

Answer

Products removed from the website but still physically present in the warehouse

Question 6

Which metric measures how many times a company's inventory is sold and replaced over a specific period?

Accepted Answer

Inventory turnover ratio

Answer

Fill rate

Answer

Days sales of inventory (DSI)

Answer

Gross margin return on investment (GMROI)

Question 7

What is a perpetual inventory system?

Accepted Answer

An inventory method that continuously updates stock levels in real-time after every transaction

Answer

A system that counts all inventory once per year during a scheduled physical audit

Answer

A spreadsheet-based manual tracking system designed for small businesses

Answer

A system that automatically places reorders when stock levels fall below a set threshold