Inventory Management Methods and Practices

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What is the ideal number of suppliers of goods to have in order to minimize the impact of fill up period on the business?

It depends on the type of goods

Three or more

At least two (correct)

One

What can cause delays in the delivery of products and supplies?

Management prerogative

Both A and B (correct)

Lack of inventory management

Natural calamities

What is the goal of inventory management according to the phrase 'Right quantity at right place at right time'?

To reduce the number of suppliers

To ensure the availability of goods when needed (correct)

To maximize inventory levels

To minimize inventory costs

What is the main reason why having multiple suppliers is ideal?

To ensure business continuity Signup and view all the answers

What is the impact of natural calamities on the business?

It has a turbulent impact on the business Signup and view all the answers

What is the role of inventory management in the organization?

To concede in the economic activity Signup and view all the answers

What is the primary goal of Just in Time Inventory management?

To ensure product availability at a given time with minimal inventory Signup and view all the answers

What is the purpose of ABC Analysis in inventory management?

To categorize items based on their value and importance Signup and view all the answers

Which inventory management strategy involves not keeping inventory in stock, but instead partnering with a supplier to ship products directly to customers?

Drop Shipping Signup and view all the answers

What is the purpose of Economic Order Quantity (EOQ) in inventory management?

To determine the smallest quantity of stock that needs to be ordered to meet customer demand Signup and view all the answers

What is the primary goal of Lean Manufacturing in inventory management?

To maximize productivity and minimize waste Signup and view all the answers

What is the purpose of Consignment Inventory in inventory management?

To allow vendors to sell products on behalf of the supplier and pay for the sold products Signup and view all the answers

What is the purpose of maintaining a Safety Stock Inventory?

To mitigate stockouts and overstocking Signup and view all the answers

What is the primary goal of the Just-In-Time (JIT) inventory management strategy?

To reduce lead times and inventory levels Signup and view all the answers

What is the purpose of an Economic Order Quantity (EOQ)?

To determine the optimal order size Signup and view all the answers

What is the primary benefit of using the ABC Analysis in inventory management?

To prioritize inventory items based on their value Signup and view all the answers

What is the purpose of the Lean Manufacturing approach in inventory management?

To minimize waste and maximize efficiency Signup and view all the answers

What is the purpose of the Reorder Level in inventory management?

To trigger replenishment of inventory Signup and view all the answers