E-Commerce Development Inventory Management 2

Question 1

What is multi-channel inventory management?

Accepted Answer

Coordinating and synchronizing stock levels across multiple sales channels such as a website, marketplaces, and physical stores

Answer

Managing inventory across multiple warehouse locations within a single sales channel

Answer

Using multiple software systems simultaneously to track inventory in one warehouse

Answer

Dividing available inventory between wholesale and direct-to-consumer allocations

Question 2

What is overselling in the context of e-commerce inventory?

Accepted Answer

Accepting more orders than there is available inventory, leading to fulfillment failures

Answer

Listing products at above-market prices to maximize margin

Answer

Upselling customers to higher-priced products during checkout

Answer

Purchasing more inventory than the demand forecast recommends

Question 3

What does a Warehouse Management System (WMS) primarily do?

Accepted Answer

Optimizes warehouse operations including receiving, storage, picking, packing, and shipping

Answer

Manages employee schedules and payroll for all warehouse staff

Answer

Connects an e-commerce store to multiple third-party shipping carriers

Answer

Tracks financial inventory valuations and depreciation for accounting purposes

Question 4

What is dropshipping as an inventory and fulfillment model?

Accepted Answer

A fulfillment method where the seller takes orders but forwards them to a supplier who ships directly to the customer

Answer

Shipping products via air freight to reduce delivery times for customers

Answer

Removing slow-moving items from active inventory and sending them to clearance

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Returning unsold inventory to suppliers in exchange for store credit

Question 5

What is an inventory buffer in multi-channel e-commerce?

Accepted Answer

A reserved quantity subtracted from available stock to prevent overselling across channels when sync delays occur

Answer

A software module that prevents simultaneous writes to inventory database tables

Answer

Physical foam padding used to protect fragile products in warehouse storage racks

Answer

A temporary holding area designated for processing customer returns and damaged merchandise

Question 6

What does 'bin location' refer to in warehouse management?

Accepted Answer

A specific designated storage address within a warehouse assigned to hold a particular product

Answer

The shipping container type used for packing and sending customer orders

Answer

The database table where inventory SKU data is stored in the WMS software

Answer

A recycling container for damaged packaging materials and returned items

Question 7

What is cycle counting in inventory management?

Accepted Answer

A continuous auditing process where a rotating subset of inventory is counted on a regular schedule

Answer

Counting all inventory simultaneously during a mandatory annual physical count

Answer

Counting the total number of complete inventory turnover cycles achieved per fiscal year

Answer

Tracking how many times a product travels through the full supply chain from supplier to customer