Business Quiz: Inventory Management- III

10 Questions | Total Attempts: 203

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Business Quiz: Inventory Management- III

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Questions and Answers
  • 1. 
    Which of the following statements is most accurate?
    • A. 

      About 20% of the items will usually account for about 80% of the total value

    • B. 

      A items should have the loosest possible control

    • C. 

      The general rule for using the ABC approach is to have plenty of everything in stock

    • D. 

      C items account for about 50% of the total value

  • 2. 
    Which of the following statements is best?
    • A. 

      A items usually account for about 50% of the total usage value

    • B. 

      About 50% of the items usually account for 5% of the value

    • C. 

      C items should be given top priority in inventory management

    • D. 

      All inventory items should be managed in the same way

  • 3. 
    Which is the best statement regarding floating location systems?
    • A. 

      Goods are always stored in the same location

    • B. 

      The same SKU may be stored in several locations at the same time

    • C. 

      An informal information system can be used

    • D. 

      The system is appropriate for all warehouses

  • 4. 
    Which of the following is a major objective of distribution inventory management?
    • A. 

      To provide the required level of customer service

    • B. 

      To minimize the costs of warehouse space

    • C. 

      To always have enough of everything on hand so there are no stockouts

    • D. 

      To minimize labor costs

  • 5. 
    Which of the following is not an activity in a physical distribution system?
    • A. 

      Distribution inventory

    • B. 

      Protective packaging

    • C. 

      Shop floor control

    • D. 

      Order processing

  • 6. 
    Which of the following activities is not considered a function of physical distribution?
    • A. 

      Transportation

    • B. 

      Production control

    • C. 

      Distribution inventory

    • D. 

      Warehousing

  • 7. 
    Which of the following statements is best?
    • A. 

      Physical distribution provides a bridge between marketing and production

    • B. 

      Physical distribution is a factor creating customer demand

    • C. 

      Replenishment orders to replace field warehouse stocks will not affect production

    • D. 

      Both A and B are true

  • 8. 
    Considering the service desired and the relative cost of the item, which of the following would you most likely ship by truck?
    • A. 

      Regular shipments of cut flowers direct to a florist shop

    • B. 

      Regular shipments of iron ore

    • C. 

      Regular shipments of grain

    • D. 

      Emergency maintenance parts

  • 9. 
    Total line-haul costs will vary directly with which of the following?
    • A. 

      The distance moved

    • B. 

      The packaging

    • C. 

      Customer discounts

    • D. 

      The perishability of the goods

  • 10. 
    What is the name for the consolidation of several units into a larger unit for less handling?
    • A. 

      Unitization

    • B. 

      Consolidation

    • C. 

      Cube utilization

    • D. 

      Packaging

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