Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the objective of inventory management?
What is the objective of inventory management?
- To ignore inventory investment and solely focus on customer service
- To balance inventory investment and customer service (correct)
- To maximize inventory investment at all costs
- To minimize customer service and focus on inventory investment
What is the purpose of ABC analysis in inventory management?
What is the purpose of ABC analysis in inventory management?
- To establish policies that focus on critical parts based on annual dollar volume (correct)
- To ignore inventory classification based on annual dollar volume
- To prioritize inventory based on the number of units in stock
- To minimize the handling of trivial inventory items
What is the function of finished goods inventory?
What is the function of finished goods inventory?
- Completed product awaiting shipment (correct)
- Necessary to keep machinery and processes productive
- Undergone some change but not completed
- Purchased but not processed
What does work-in-process (WIP) inventory represent?
What does work-in-process (WIP) inventory represent?
Signup and view all the answers
What is the main reason for maintaining maintenance/repair/operating (MRO) inventory?
What is the main reason for maintaining maintenance/repair/operating (MRO) inventory?
Signup and view all the answers
