APP Inventory, Logistics & Supply Chain Management 1

Question 1

What is the main goal of inventory management?

Accepted Answer

Balance cost and service level

Answer

Inventory management aims to balance the cost of inventory with the service level to ensure product availability without overstocking.

Question 2

What is the Economic Order Quantity (EOQ) model used for?

Accepted Answer

Optimize order size

Answer

EOQ determines the optimal order quantity that minimizes total inventory costs including ordering and holding costs.

Question 3

What does Just-in-Time (JIT) inventory management aim to reduce?

Accepted Answer

Inventory waste

Answer

JIT minimizes inventory levels by receiving goods only when they are needed, reducing carrying costs and waste.

Question 4

Which function is most associated with logistics?

Accepted Answer

Goods transportation

Answer

Logistics focuses on the planning, movement, and storage of goods throughout the supply chain.

Question 5

Which of the following best describes the supply chain?

Accepted Answer

All steps from sourcing to delivery

Answer

The supply chain includes all activities involved in producing and delivering a product from raw materials to the final customer.

(APP) Accredited Purchasing Practitioner Certification Practice Test