10 Questions
What is the meaning of inventory?
Idle resource
What is the role of selective inventory management?
To prioritize inventory based on demand and importance
Which term is generally used to refer to physical and tangible objects such as materials in the context of inventory?
Stock
What concept is used for aggregate inventory planning?
Exchange curve
What do deterministic and probabilistic inventory models mainly focus on?
Forecasting inventory demand
What is the inventory turnover ratio used to measure?
Business performance
What is the opportunity cost of carrying inventory?
Cost of blocking material in non-productive form
What does a high inventory turnover ratio indicate?
Effective management of inventory
What are some significant costs in an inventory system?
Cost of carrying inventories, cost of incurring shortages, cost of replenishing inventories
What is the cost of incurring shortages in an inventory system?
Opportunity cost of not having an item in stock when one is demanded
Test your understanding of inventory management concepts such as inventory meaning and cost parameters, types of inventory policies, selective inventory management, exchange curve concept, mathematical models, and sensitivity analysis.
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