Inventory Control Methods – End of Section Assessment

Question 1 of 7

1. Question

Companies use various techniques to decide how much inventory to order and when to order it. From the following statement regarding Stock Cover, select the correct missing key words:

Stock Cover is the amount of an item the company has in inventory – expressed as days, weeks, or months’ worth of stock. This provides an of which items should be first.

Choose From: Re-stocked, In-demand, Cost, Indicator, On-hand, Purchased

Question 2 of 7

2. Question

Backward Scheduling is a method of determining a production schedule by working backwards from the due date (or time) to the start date (or time), and computing the materials and time required at every operation or stage. What does Backward Scheduling rely on? Select True or False.

Bill of Materials (BoM) –

Cost of Product –

Lead times –

Production Method –

Due date –

Choose From: True or False

Question 3 of 7

3. Question

With regard to the Economic Order Quantity, select True or False against each of the following statements:

Anytime that there is repetitive purchasing or planning of an item, EOQ should not be considered –

Economic Order Quantity is an application of balancing cost –

A method for deciding how much raw material inventory to buy –

A method of calculating when to purchase stock –

Choose From: True or False

Question 4 of 7

4. Question

To try and offset the possibility of stock outs resulting from uncertainties, organisations may keep a safety stock; the level of which is determined in three ways. Select the correct three ways from the following list:

Economic Order Quantity
Percentage of Lead Time
Mean Average Deviation method
A given Period’s worth
Percentage of items held
Average Deviation Method

Question 5 of 7

5. Question

Kanban (translated from Japanese to mean Visual (Kan) Card (ban)) is a visual signalling system which is used to trigger the supply to a process with its needs. There are three different types of Kanban, select the correct three from the following:

Supplier
Office
In-Factory
Incoming
Outgoing
Production

Question 6 of 7

6. Question

Three major approaches can be used for inventory control in any type and size of operation. Select the three approaches from the following list:

Eyeball System
Cyclical
Timebound
Perpetual Inventory
Reserve Stock
Red Bag

Question 7 of 7

7. Question

What does the abbreviation VMI stand for? Select the correct answer from the following:

Vendor Monitored Inventory (VMI)
Vendor Managed Inventory (VMI)
Value Managed Inventory (VMI)