P02 - Managing Parts Using Stockrooms

This statement is true because parts can be located in multiple stock rooms. This means that a company may have multiple stock rooms where they store their inventory. This allows for easier organization and management of parts, as they can be distributed across different locations based on factors such as size, type, or demand. Having multiple stock rooms also ensures that there is redundancy in case one stock room experiences any issues or shortages.

Direct Issue inventory refers to inventory that is not kept in stock and is instead directly issued to the production process or customer as soon as it is received. This type of inventory is typically used for items that have a short shelf life, are highly perishable, or are specialized for specific customer orders. Unlike stock inventory that is held in a warehouse or store, direct issue inventory is immediately used or delivered, reducing the need for storage space and minimizing the risk of obsolescence or spoilage.

The statement is true because MC (which is not defined in the question) stores two different types of inventory: Direct Issue Parts and Stocked Items. This implies that MC has a system or facility for storing and managing these two types of inventory separately.

The explanation for the given correct answer is that when the "average" costing method is used, an initial value can be entered until historical records can be calculated. Maintenance Connection will then calculate the average cost per order unit based on the average of all completed Purchase Orders for this stock room. This means that the average cost will be determined based on past purchase orders, allowing for a more accurate calculation of costs. Therefore, the statement is true.

In Maintenance Connection, a Rotating Item is essentially considered an Asset. This means that it is a piece of equipment or property that is owned or managed by an organization. In the context of maintenance management, assets are tracked, maintained, and repaired as needed. Therefore, categorizing a Rotating Item as an Asset in Maintenance Connection allows for effective tracking and management of the item's maintenance and repair activities.

When setting up a Rotating Part, the field that SHOULD BE unique is the Serial Number. This is because the Serial Number is a specific identifier assigned to each individual part, allowing for easy tracking and identification. Having a unique Serial Number ensures that there are no duplicates or confusion when managing and maintaining the rotating parts.

The Vendor's tab of an Inventory Part does not store the Stock Room(s) where the selected Part is located.

The Maximum Point is considered a guide for the maximum number of items to purchase. It serves as a reference for the maximum quantity that can be ordered, although it does not prevent someone from ordering more than that amount. The Maximum Point helps in managing inventory levels and ensuring that the stock does not exceed a certain threshold. It is used as a reference to regulate purchasing decisions and maintain optimal inventory levels.

The Locations tab on a Part gives quick access to Quantity and Cost information. This tab allows users to view and edit the quantity of the part available at each location, as well as the cost associated with each location. This information is important for tracking inventory levels and managing costs effectively.

When inventory hits or falls below the reorder point in stock rooms, it will appear as Bold Green.