CWLP Inventory Management & Control

Question 1

What is the first step in inventory management?

Accepted Answer

Establishing an inventory system

Answer

Ordering products in bulk.

Answer

Assigning a salesperson to manage inventory.

Answer

Focusing on stock clearance.

Question 2

Why is accurate stock taking essential in inventory management?

Accepted Answer

It prevents overstocking and understocking.

Answer

It helps identify slow-moving items.

Answer

It boosts marketing efforts.

Answer

It reduces storage costs.

Question 3

What is the role of inventory control in reducing waste?

Accepted Answer

It prevents excess ordering and stock obsolescence.

Answer

It eliminates the need for forecasting.

Answer

It ensures that outdated products are not sold.

Answer

It helps businesses avoid large inventories.

Question 4

What is the purpose of using a Just-In-Time (JIT) inventory system?

Accepted Answer

It minimizes waste and storage costs.

Answer

It reduces the amount of stock on hand.

Answer

It eliminates the need for stock tracking.

Answer

It increases the amount of stock to satisfy demand.

Question 5

What is the primary advantage of barcode scanning in inventory management?

Accepted Answer

It speeds up inventory management and reduces errors.

Answer

It simplifies the ordering process.

Answer

It increases the time spent on stocktaking.

Answer

It provides more storage space.

Question 6

Why is tracking stock turnover essential?

Accepted Answer

It indicates how efficiently inventory is being sold.

Answer

It helps identify high-demand products.

Answer

It helps manage storage capacity.

Answer

It reduces the need for inventory control.

Question 7

How does inventory forecasting improve business efficiency?

Accepted Answer

It helps prevent stockouts and overstocking.

Answer

It ensures that products are ordered too early.

Answer

It reduces stock ordering frequency.

Answer

It only focuses on perishable goods.

Question 8

What does FIFO (First-In, First-Out) mean in inventory control?

Accepted Answer

Using the oldest stock first.

Answer

Selling newer stock first.

Answer

Using stock based on size.

Answer

Storing items according to price.

Question 9

What is the main challenge of managing perishable inventory?

Accepted Answer

Managing stock levels before expiration.

Answer

Tracking temperature changes.

Answer

Reducing packaging costs.

Answer

Increasing storage capacity.