Inventory Management Unit 17 Quiz
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Questions and Answers

What is the meaning of inventory?

  • Tangible object
  • Non-usable resource
  • Dynamic resource
  • Idle resource (correct)

    • What is the role of selective inventory management?

  • To eliminate the need for inventory altogether
  • To prioritize inventory based on demand and importance (correct)
  • To manage all types of inventory simultaneously
  • To automate the inventory management process

    • Which term is generally used to refer to physical and tangible objects such as materials in the context of inventory?

  • Inventory
  • Materiality
  • Resource
  • Stock (correct)

    • What concept is used for aggregate inventory planning?

    <p>Exchange curve</p> Signup and view all the answers

    What do deterministic and probabilistic inventory models mainly focus on?

    <p>Forecasting inventory demand</p> Signup and view all the answers

    What is the inventory turnover ratio used to measure?

    <p>Business performance</p> Signup and view all the answers

    What is the opportunity cost of carrying inventory?

    <p>Cost of blocking material in non-productive form</p> Signup and view all the answers

    What does a high inventory turnover ratio indicate?

    <p>Effective management of inventory</p> Signup and view all the answers

    What are some significant costs in an inventory system?

    <p>Cost of carrying inventories, cost of incurring shortages, cost of replenishing inventories</p> Signup and view all the answers

    What is the cost of incurring shortages in an inventory system?

    <p>Opportunity cost of not having an item in stock when one is demanded</p> Signup and view all the answers

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