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Free Practice Quiz Question List

6 Inventory Management Online Quiz Questions

Use this free practice quiz with 20 questions to review 6 Inventory Management, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

True or false: Inventory that is in transit as part of the replenishment process is pipeline inventory.

  1. A

    True

  2. B

    False

02
Fill in the blank
1 point

Maintenance, repair, and operating supplies are commonly abbreviated .

03
Choose one
1 point

A business is preparing an ABC analysis. Which measure should it use to group items by annual dollar usage?

  1. A

    The number of units currently held in storage

  2. B

    Annual demand multiplied by unit cost

  3. C

    The time between placing an order and receiving it

  4. D

    The number of stockouts during the previous year

04
Written response
1 point

What is the name for inventory accumulated ahead of a predictable seasonal demand peak?

05
Choose one
1 point

A warehouse handles perishable goods with different expiration dates. Which rotation rule best helps reduce losses from expired stock?

  1. A

    Use last-in-first-out handling so newer goods are used first

  2. B

    Use first-in-first-out handling in every situation, regardless of expiration dates

  3. C

    Use first-expired-first-out handling

  4. D

    Store items without clear identification to simplify rotation

06
Choose all
1 point

Which of the following are inventory costs that a replenishment policy should weigh? Select all that apply.

  1. A

    Ordering or setup costs

  2. B

    Customer service level

  3. C

    Carrying costs

  4. D

    Annual demand

  5. E

    Shortage costs, such as lost sales or interrupted production

  6. F

    Supplier lead time

07
True or false
1 point

True or false: High inventory turnover is always beneficial, even when it comes with frequent shortages.

  1. A

    True

  2. B

    False

08
Choose one
1 point

A low-cost component can stop a production line if it is unavailable. Which inventory-control decision best reflects this risk?

  1. A

    Use only unit cost to decide which items receive close attention

  2. B

    Monitor a low-cost item closely if its absence could stop production

  3. C

    Classify every low-cost item as unimportant

  4. D

    Avoid reviewing item classifications once they have been assigned

09
Fill in the blank
1 point

In a kanban system, a card, bin, or electronic message acts as a authorizing movement or production of a defined quantity.

10
Choose all
1 point

Which actions help keep inventory records, physical stock, and replenishment decisions aligned? Select all that apply.

  1. A

    Record receipts, issues, returns, and adjustments promptly

  2. B

    Wait for an occasional full count before correcting discrepancies

  3. C

    Cycle count selected items on a planned schedule and investigate differences

  4. D

    Reassess replenishment parameters when demand or supplier performance changes

  5. E

    Keep the same reorder settings even when operating conditions change

11
Choose one
1 point

At a periodic review, a store's inventory position is 112 units and its order-up-to level is 150 units. How many units should it order to reach the target?

  1. A

    38 units

  2. B

    112 units

  3. C

    150 units

  4. D

    262 units

12
Written response
1 point

A business has 42 units on hand, 18 units on order, and 7 units backordered. Using inventory position = on-hand inventory + on-order inventory − backorders, calculate its inventory position. Enter your answer in units.

13
Choose one
1 point

Demand has a standard deviation of 2.5 units per day, lead time is 4 days, and the chosen service-level factor is 1.2. Using the estimate safety stock=z×σd×L\text{safety stock}=z \times \sigma_d \times \sqrt{L}, what is the estimated safety stock?

  1. A

    3 units

  2. B

    6 units

  3. C

    10 units

  4. D

    12 units

14
Open ended
1 point

A supplier's lead time has become more variable, and the business wants to maintain its intended customer service. Explain how it should respond when reviewing its inventory buffer, and identify at least one factor it should account for beyond average daily demand.

15
Choose one
1 point

A manufacturer builds extra inventory before a predictable seasonal sales peak. Which type of stock is this?

  1. A

    Safety stock

  2. B

    Anticipation stock

  3. C

    Pipeline inventory

  4. D

    Work in process

16
Choose one
1 point

A retailer holds its usual stock to serve expected sales between regular deliveries. Which inventory purpose best describes this stock?

  1. A

    Cycle stock

  2. B

    Safety stock

  3. C

    Anticipation stock

  4. D

    Pipeline inventory

17
Choose one
1 point

A buyer checks inventory every Monday and orders enough to bring the inventory position up to a target. Which replenishment system is being used?

  1. A

    Continuous review, because it places the same fixed order at each scheduled check

  2. B

    Pull replenishment, because a target level is set at fixed review intervals

  3. C

    Periodic review, because stock is checked at fixed intervals and the order raises inventory position to a target

  4. D

    Continuous review, because inventory is monitored only once per week

18
True or false
1 point

A production cell uses a kanban signal when it consumes a bin of parts, authorizing replenishment of a defined quantity. This is an example of pull replenishment.

  1. A

    True

  2. B

    False

19
Written response
1 point

A company has placed an order for components, and the items are currently in transit to its facility. What inventory category describes these items?

20
Written response
1 point

Average demand is 1414 units per day, lead time is 55 days, and safety stock is 1818 units. Using ROP=expected demand during lead time+safety stock\text{ROP} = \text{expected demand during lead time} + \text{safety stock}, calculate the reorder point.