IDAT Administration and Logistics 2

Question 1

Which inventory management method assumes the most recently purchased items are sold first?

Accepted Answer

LIFO

Answer

LIFO (Last In, First Out) assumes the most recently acquired inventory items are sold or used first.

Question 2

A purchase order (PO) primarily serves to:

Accepted Answer

Authorize a buyer's intent to purchase goods or services

Answer

A purchase order is a formal document sent by a buyer to a supplier authorizing a specific purchase.

Question 3

The term 'lead time' in logistics refers to:

Accepted Answer

The delay between order placement and order receipt

Answer

Lead time is the elapsed time from when an order is placed to when it is received and ready for use.

Question 4

Which document confirms that goods received match what was ordered in quantity and condition?

Accepted Answer

Receiving report

Answer

A receiving report documents that delivered goods have been inspected and verified against the purchase order.

Question 5

In supply chain management, a 'bottleneck' is best described as:

Accepted Answer

A stage that limits the overall throughput of the system

Answer

A bottleneck is the slowest step in a process that constrains the capacity and speed of the entire system.

(IDAT) International Diagnostic and Admission Test Practice Test