NAMA Product Selection & Inventory Control 2 — Questions and Answers
Question 1: Which inventory metric measures the number of times inventory is sold and replaced over a specific period?
- Days on hand
- Inventory turnover ratio (Correct answer)
- Reorder point
- Safety stock level
Correct answer: Inventory turnover ratio
Inventory turnover ratio measures how many times stock is sold and replenished within a given period, indicating operational efficiency.
Question 2: A vending operator notices that a particular snack sells 50 units per week with a 2-week lead time. What is the reorder point if no safety stock is maintained?
- 50 units
- 75 units
- 100 units (Correct answer)
- 150 units
Correct answer: 100 units
Reorder point = average weekly demand × lead time = 50 × 2 = 100 units.
Question 3: In vending operations, what does a 'planogram' primarily help operators accomplish?
- Calculate profit margins per product
- Organize machine shelf space for optimal product placement (Correct answer)
- Track sales tax compliance
- Schedule maintenance visits
Correct answer: Organize machine shelf space for optimal product placement
A planogram is a visual diagram that guides how products should be arranged in a vending machine to maximize sales and minimize waste.
Question 4: Which of the following best describes 'ABC analysis' in vending inventory management?
- Alphabetically sorting products for easy restocking
- Categorizing inventory by value and sales velocity to prioritize management effort (Correct answer)
- Auditing inventory three times per year
- Assigning barcodes to all products
Correct answer: Categorizing inventory by value and sales velocity to prioritize management effort
ABC analysis classifies products into A (high value/volume), B (moderate), and C (low), allowing operators to focus resources where they matter most.
Question 5: A vending machine consistently runs out of a popular beverage before the scheduled service visit. What is the most effective corrective action?
- Remove the product from the machine
- Lower the product's price to slow consumption
- Increase the par level or service frequency for that machine (Correct answer)
- Replace it with a slower-moving product
Correct answer: Increase the par level or service frequency for that machine
Increasing the par level or service frequency ensures the machine stays stocked to meet demand, preventing lost sales from stockouts.
Question 6: What is the primary purpose of setting a 'minimum order quantity' (MOQ) with a vending supplier?
- To limit product variety in machines
- To ensure per-unit cost savings through volume purchasing (Correct answer)
- To prevent operators from over-ordering
- To comply with FDA labeling requirements
Correct answer: To ensure per-unit cost savings through volume purchasing
Suppliers set MOQs so that orders reach a volume threshold that justifies lower per-unit costs and efficient shipping.
Question 7: Which factor is MOST important when selecting healthy food options for a corporate office vending account?
- Products with the longest possible shelf life regardless of nutrition
- Alignment with the client's wellness program goals and employee preferences (Correct answer)
- Choosing products with the highest unit margin only
- Selecting items with the most colorful packaging
Correct answer: Alignment with the client's wellness program goals and employee preferences
Corporate wellness programs influence product selection, and matching offerings to client goals and employee preferences drives satisfaction and sales.
NAMA Product Selection & Inventory Control 2
Which inventory metric measures the number of times inventory is sold and replaced over a specific period?