Supply Chain and Logistics Inventory Management 1

Question 1

What does EOQ stand for in inventory management?

Accepted Answer

Economic Order Quantity

Answer

Expected Order Quality

Answer

Efficient Output Quota

Answer

Estimated Order Queue

Question 2

Which inventory method assumes the first items purchased are the first items sold?

Accepted Answer

FIFO

Answer

LIFO

Answer

Weighted Average

Answer

Specific Identification

Question 3

What is safety stock used for in inventory management?

Accepted Answer

Buffer against demand variability and supply delays

Answer

Reduce ordering frequency

Answer

Lower purchase price

Answer

Improve supplier relationships

Question 4

Which metric measures how many times inventory is sold and replaced over a period?

Accepted Answer

Inventory turnover

Answer

Fill rate

Answer

Carrying cost ratio

Answer

Days sales outstanding

Question 5

What is the primary goal of ABC analysis in inventory control?

Accepted Answer

Prioritize inventory items by value and volume

Answer

Alphabetically organize SKUs

Answer

Automate reordering

Answer

Track supplier performance

Question 6

What does 'dead stock' refer to in inventory management?

Accepted Answer

Inventory that has never been sold and is unlikely to be sold

Answer

Items in transit

Answer

Returned merchandise

Answer

Items awaiting quality inspection