Podcast
Questions and Answers
What is the primary goal of inventory management?
What is the primary goal of inventory management?
- To increase inventory storage capacity
- To reduce insurance premiums for inventory
- To optimize inventory levels and prevent stockouts or overstocking (correct)
- To minimize inventory costs
What is a potential risk of holding a large inventory?
What is a potential risk of holding a large inventory?
- Improved cash flow
- Increased sales
- Spoilage, theft, or damage (correct)
- Higher profit margins
Why is inventory management important for businesses of any size?
Why is inventory management important for businesses of any size?
- To ensure that inventory is accurately valued on the balance sheet
- To prevent stockouts or overstocking and maintain a competitive edge (correct)
- To improve customer satisfaction
- To reduce inventory costs
What is a common method used by small businesses to determine reorder points and quantities?
What is a common method used by small businesses to determine reorder points and quantities?
What is the primary benefit of effective inventory management?
What is the primary benefit of effective inventory management?
What type of software is commonly used by larger businesses for inventory management?
What type of software is commonly used by larger businesses for inventory management?
What type of inventory management strategy is used by companies that deal with perishable goods or time-sensitive products?
What type of inventory management strategy is used by companies that deal with perishable goods or time-sensitive products?
What is the main advantage of using just-in-time (JIT) manufacturing?
What is the main advantage of using just-in-time (JIT) manufacturing?
What is the purpose of physically counting or measuring inventory?
What is the purpose of physically counting or measuring inventory?
What type of companies do not have physical inventory and rely on service process management?
What type of companies do not have physical inventory and rely on service process management?
What is the main difference between JIT and MRP inventory management methods?
What is the main difference between JIT and MRP inventory management methods?
What is the name of the company that contributed the most to the development of JIT manufacturing?
What is the name of the company that contributed the most to the development of JIT manufacturing?
