CIM Inventory Control & Stock Replenishment

Question 1

What is the primary goal of inventory control?

Accepted Answer

To maintain optimal stock levels and meet demand

Answer

To reduce staff workload.

Answer

To increase storage requirements.

Answer

To avoid using software systems.

Question 2

Which method is commonly used to determine reorder points?

Accepted Answer

Average lead time demand plus safety stock

Answer

Annual turnover rate.

Answer

Market share analysis.

Answer

Product warranty period.

Question 3

What is a common challenge in stock replenishment?

Accepted Answer

Inaccurate demand forecasting

Answer

Overcommunication with suppliers.

Answer

Using automated systems.

Answer

Vendor relationship improvements.

Question 4

Which inventory management technique helps classify items based on their importance?

Accepted Answer

ABC analysis

Answer

FIFO method.

Answer

Just-In-Time delivery.

Answer

LIFO tracking.

Question 5

What is the purpose of safety stock?

Accepted Answer

To act as a buffer against stockouts

Answer

To increase cost of goods sold.

Answer

To prevent production efficiency.

Answer

To minimize product visibility.

Question 6

Which software functionality is essential for stock replenishment automation?

Accepted Answer

Automatic reordering based on inventory levels

Answer

Sales order analysis.

Answer

Manual invoice generation.

Answer

Warehouse staff performance tracking.

Question 7

What inventory method records every transaction in real-time?

Accepted Answer

Perpetual inventory system

Answer

Periodic inventory method.

Answer

Manual tracking.

Answer

Just-In-Time inventory.

Question 8

What is Economic Order Quantity (EOQ)?

Accepted Answer

The optimal order quantity to minimize ordering and holding costs

Answer

The amount ordered based on supplier requests.

Answer

The quantity ordered without planning.

Answer

The total inventory at the end of fiscal year.

Question 9

How does lead time affect inventory management?

Accepted Answer

It affects replenishment timing and stock levels

Answer

It has no impact on inventory decisions.

Answer

It reduces the need for safety stock.

Answer

It only influences shipping methods.