Question 1

What is inventory control?

Accepted Answer

Tracking and managing materials in storage

Answer

Packaging finished goods

Answer

Transporting products internationally

Question 2

Which type of inventory consists of materials used in production?

Accepted Answer

Raw materials

Answer

Finished goods

Answer

Returned products

Question 3

What is work-in-process (WIP) inventory?

Accepted Answer

Partially finished goods between manufacturing steps

Answer

Raw materials waiting to be used

Answer

Finished goods ready for sale

Question 4

Which type of inventory is packaged and ready to ship to customers?

Accepted Answer

Finished goods

Answer

Raw materials

Answer

Maintenance supplies

Question 5

What system is most widely used for inventory management in distribution operations?

Accepted Answer

Warehouse Management System (WMS)

Answer

Enterprise Marketing System

Answer

Manufacturing Assembly System

Question 6

How do workers commonly enter inventory data into a WMS?

Accepted Answer

Scanning barcodes with handheld devices

Answer

Typing all information manually

Answer

Using printed order sheets

Question 7

What information can a WMS provide about inventory?

Accepted Answer

Quantity and location of items

Answer

Customer addresses only

Answer

Employee payroll data

Question 8

What does Just-in-Time (JIT) inventory aim to do?

Accepted Answer

Produce needed items in the right quantity at the right time

Answer

Eliminate transportation costs

Answer

Store maximum inventory at all times

Question 9

One disadvantage of JIT inventory is that it may cause what?

Accepted Answer

More frequent deliveries

Answer

Reduced production schedules

Answer

Lower transportation costs

Question 10

Which concept is emphasized in JIT material handling?

Accepted Answer

Providing the right amount of inventory

Answer

Maximizing warehouse storage

Answer

Increasing inventory stockpiles

Question 11

Which principle states that a small percentage of items account for a large portion of value?

Accepted Answer

ABC inventory control

Answer

Distribution law

Answer

Random inventory theory

Question 12

According to typical ABC classification, what percentage of items account for about 70% of value?

Accepted Answer

20%

Answer

50%

Answer

30%

Question 13

What type of items make up about 50% of inventory items but only about 5% of value?

Accepted Answer

C items

Answer

A items

Answer

B items

Question 14

Where are A items typically stored in a warehouse?

Accepted Answer

Close to shipping or receiving areas

Answer

In offsite storage

Answer

In the highest racks

Question 15

What does FIFO stand for?

Accepted Answer

First-in-First-Out

Answer

Final-in-First-Out

Answer

First-in-Final-Out

Question 16

Why is FIFO commonly used for food products?

Accepted Answer

To prevent spoilage

Answer

To increase profit margins

Answer

To reduce labor costs

Question 17

What does LIFO stand for?

Accepted Answer

Last-in-First-Out

Answer

Last-item-Finished-Out

Answer

Linear-in-First-Out

Question 18

Why might LIFO be used in electronics retail?

Accepted Answer

To ship the newest models first

Answer

To reduce storage costs

Answer

To eliminate inventory counts

Question 19

What is inventory turnover?

Accepted Answer

The number of times inventory cycles during a year

Answer

The time it takes to deliver goods

Answer

The number of warehouses used

Question 20

What is cyclical ordering?

Accepted Answer

Ordering inventory on a scheduled time basis

Answer

Ordering based on supplier demand

Answer

Ordering when inventory runs out

Question 21

What system orders items when inventory falls to a specific level?

Accepted Answer

Fixed-order quantity system

Answer

Cyclical ordering system

Answer

Manual ordering system

Question 22

What does MRP stand for?

Accepted Answer

Material Requirements Planning

Answer

Material Resource Production

Answer

Manufacturing Resource Process

Question 23

What is the main purpose of cycle counting?

Accepted Answer

To regularly check inventory accuracy

Answer

To increase production speed

Answer

To eliminate warehouse workers

Question 24

How often are A items typically counted in cycle counting?

Accepted Answer

8 times per year

Answer

12 times per year

Answer

2 times per year

Question 25

What is a wall-to-wall physical inventory count?

Accepted Answer

Counting all inventory in the facility

Answer

Scanning barcodes randomly

Answer

Counting only damaged goods

Question 26

What is manual counting?

Accepted Answer

Employees physically counting items with forms or devices

Answer

Robots scanning items

Answer

Computers counting inventory automatically

Question 27

What technology is commonly used for automated inventory counting?

Accepted Answer

Barcodes and RFID tags

Answer

Paper inventory sheets

Answer

Telephone systems

Question 28

What is reverse logistics?

Accepted Answer

The process of handling returned products

Answer

Manufacturing new goods

Answer

Delivering products faster

Question 29

Why are many products returned?

Accepted Answer

Damage or defects

Answer

High sales demand

Answer

Faster delivery times

Question 30

Which activity is part of sustainable reverse logistics?

Accepted Answer

Recycling materials

Answer

Reducing employee hours

Answer

Increasing warehouse size

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