Inventory & Supply Management Flashcards

What is the primary purpose of establishing a par level for cleaning supplies?

Answer: To set the minimum quantity that triggers a reorder

A par level defines the minimum stock quantity at which a reorder must be placed to prevent running out of essential supplies.

A residential cleaning company notices that microfiber cloths are being used at twice the expected rate. What is the BEST first step?

Answer: Audit usage to determine if waste or theft is occurring

An audit identifies whether excess usage stems from waste, loss, or theft before making procurement decisions.

Which inventory method values remaining stock at the most recently purchased price?

Answer: LIFO (Last In, First Out)

LIFO assigns the cost of the most recently purchased inventory to goods sold or used first.

When storing concentrated cleaning chemicals alongside diluted ready-to-use products, what is a critical safety requirement?

Answer: Keep concentrates and diluted products in clearly labeled, separate sections

Separating and clearly labeling concentrates from diluted products prevents accidental misuse and dangerous over-concentration.

A cleaning business uses 50 mop heads per month. Lead time from the supplier is 2 weeks. What is the minimum reorder point (assuming no safety stock)?

Answer: 25 mop heads

With a 2-week lead time and 50 units/month usage, reorder when stock hits 25 (half a month's supply).

What does 'dead stock' mean in a cleaning supply context?

Answer: Inventory that is not moving and has no foreseeable use

Dead stock refers to inventory that is not being used or sold and ties up capital without providing value.

Which document formally records the transfer of supplies from a central warehouse to a cleaning crew's vehicle?

Answer: Material transfer requisition

A material transfer requisition documents internal movement of stock between locations or departments.