FREE Financial Management For Project Managers Inventory Management Questions and Answers
In relation to ABC analysis, which of the following claims is untrue?
The ABC analysis method, which is based on the Pareto principle, commonly known as the 80/20 rule, is used for inventory management and categorization. Based on their worth and relevance, it separates inventory items into three categories: A, B, and C goods. The relevance of each category determines how it is managed.
Utilizing the weighted average approach, determine the closing stock value from the information below: Opening balance on January 1, 2014: 50 units at Rs. 4. Receipts: 100 units for Rs. 512 on January 5, and 200 units at Rs. 4.50 on January 11. Issues: 30 units on January 2, 2014 150 units as of January 18, 2014
Yes you are correct, Rs.786
Which system assigns numeric or mnomenic codes to parts?
Yes you are correct, Symbolic
Which is "Waste in relation to material cost?"
Yes you are correct, Smoke
Equation D/Q computes the following in the economic order quantity, or EOQ, model:
Finding the order quantity that minimizes the overall cost of inventory, which consists of both ordering expenses and holding (carrying) costs, is the aim of the economic order quantity (EOQ) model. The ideal order quantity for a given product is calculated using the EOQ formula by balancing these two categories of costs.
ABC analysis assumes
An inventory management and stock control technique called ABC analysis, also known as Pareto analysis, is used to rank things according to their importance and effect on business operations. It is predicated on the idea that inventory items can be divided into three groups: A things, B items, and C goods.
Item placement that can accidentally swap items is
The activity of categorizing or assembling objects that are related or similar in terms of their traits, attributes, or functions is known as family grouping. By placing related products next to one another, this grouping seeks to improve organization, streamline inventory management, and improve the shopping experience for customers.
Which of the following items has extra stock kept on hand to prevent stockouts?
A company's safety stock is the amount of inventory it keeps on hand in case demand differs from what is anticipated. It acts as a preventative step to take into account for unforeseen changes in demand, delays in supply, or differences in lead times. A business can lessen the likelihood of stockouts and guarantee that it has adequate inventory to fulfill client orders even in unforeseen circumstances by keeping safety stock.
What is the ABC analysis's foundation?
The classification of objects based on factors like usage, value, and importance is the main idea in ABC analysis. The cornerstone of ABC analysis isn't explicitly referred to by a phrase like "annual consumption cost basis." The importance and criticality of items to the operations of the organization are the main foci.
Inventory turn-over
Inventory turnover is a financial indicator that measures how frequently inventory is sold and replaced over a given period to determine how effectively a company manages its stock. It provides insights into the efficiency of inventory management and shows how rapidly inventory is being sold and refilled.
Which of the subsequent use CCD technology?
The CCD (Charge-Coupled Device) imaging sensor technology transforms light into electrical impulses. CCDs are frequently employed in many gadgets, such as cameras and scanners, to record and process visual data.
smoke, dust, gases, and seasoning-induced weight loss
Any item or product that has no economic value and is completely thrown is referred to as waste. Waste would be portions of raw materials or finished goods that are wholly worthless or unfit for any purpose due to causes like contamination, deterioration, or other reasons in the context of "smoke, dust, gases, and seasoning-induced weight loss."
Reorder Level=Safety Stock Plus...
A key idea in inventory management is the reorder level. In order to refill stock before it runs out, a fresh order needs to be placed at that inventory level. The reorder level accounts for the amount of time needed for the supplier to ship the items.
In relation to "Spoilage," which of the following accounting treatments is correct?
refers to the destruction or loss of raw materials, works-in-progress, or completed products during the manufacturing or production process. It can happen as a result of things like flaws, wear and tear, accidents, or other unforeseen circumstances. To appropriately reflect the financial impact of spoiling on a company's financial statements, proper accounting treatment is necessary.
Moving packed orders into shipping vehicles is called shipping cost.
When items or orders that have been packaged and ready for delivery are loaded into shipping vehicles, such as trucks, vans, or containers to be transported to their destination, costs associated with loading are incurred. To ensure a timely and safe delivery, this procedure entails manually loading the packaged goods into the assigned transportation vehicles.
If the EOQ is 200 units, the cost of ordering is Rs. 20, and the total amount purchased is 4000 units. The following is the unit carrying cost:
The cost of retaining or carrying one unit of inventory for a year, as determined by the EOQ algorithm and the supplied data, is indicated by the unit carrying cost of Rs.