16 Questions
What is the key difference between dependent demand and independent demand?
Dependent demand is related to the demand of another product, while independent demand is demand from outside the organization
What does ABC Analysis primarily classify inventory based on?
Sales volume
Which category in ABC Analysis contains the products of slightly higher value and less tightly controlled goods?
Category B
What type of products are included in category C of ABC Analysis?
Products requiring minimal controls and records
What is the main concern associated with indirect distribution?
All of the above
What is dual distribution?
Selling through multiple distribution channels
What does reverse distribution involve?
Reversing the flow of goods from consumer to intermediary to beneficiary
What is the role of third-party logistics companies in indirect distribution?
Providing access to pre-made infrastructure for manufacturers and distributors
What does storage distribution management involve?
Coordinating supply and demand to create time and place utility in goods
What are the types of channels involved in distribution?
Sales, delivery, and service
Which of the following represents an intensive distribution pattern?
Providing saturation coverage of the market by using all available outlets
What does distribution policy refer to?
How a business wants its products distributed to consumers
What is the purpose of maintenance, repair & operations (MRO) goods in inventory?
To use within the manufacture of products, but without directly making up any part of a finished product
What does cycle stock inventory refer to?
Inventory level used for the standard business cycle to satisfy regular sales orders or sales forecasts
What is the main characteristic of working stock inventory?
It includes raw materials, finished goods, and components used in the production process
What is the purpose of speculative stock?
To purchase stock in anticipation of future demand
Test your knowledge about the basic types of inventory including raw materials, work-in-progress, and finished goods. This quiz covers the definition and characteristics of each type of inventory.
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