Stock-outs can be a concern because they ____________________.

Question 1 options:

	Call attention to the fact that a companys stock price is out of line
	Require railcars to bring in additional stock
	Result in lost sales and poor customer service
	Require more space than normal stock does

Inventory management is an essential element of warehouse operations to ____________________.

Question 2 options:

	Operate a sophisticated warehouse management system
	Effectively control items that usually represent large dollar volumes
	Provide a point of receipt for in-bound shipments
	Justify capital equipment

Safety stock is acquired to ____________________.

Question 3 options:

	Protect warehouse employees from workplace hazards
	Protect against uncertainties in demand rate, lead time length, or both
	Provide warehouse protection in inclement weather
	Load a truck during the busiest shifts

Seasonal stock is ____________________.

Question 4 options:

	Used to fill vacant space
	Where temporary employees are used to move to load vehicles
	Accumulated by firms and held in advance of peak demands
	Required when storing spices

Promotional stock is best described as ____________________.

Question 5 options:

Stock that is provided free of charge by suppliers

Stock used primarily in promoting upcoming social events

Stock allocated for kits

Stock held so that a firms demand system may respond quickly and effectively to a marketing promotion

Speculative stock is most commonly held by organizations to ____________________.

Question 6 options:

	Safeguard against constrained availability or price increases
	Account for transportation times
	Build inventory in advance of seasonal demands
	Allocate funds before they are assigned to another project

Obsolescence cost is ____________________.

Question 7 options:

	Determined at receiving if incoming product is damaged
	Inventory value may decline, lose value and have to be scrapped
	Caused by careless handling
	Generated when there is a stock-out condition

Barcodes may be used in inventory control to ____________________.

Question 8 options:

	Seal final packaging prior to shipment
	Communicate system outages to suppliers
	Support the control and processing of inventory
	Justify the cost of purchasing barcode readers

The largest inventory cost is found in which aspect?

Question 9 options:

	Capital cost
	Storage space cost
	Inventory service cost
	Obsolescence cost

The purpose of counting inventory is to ____________________.

Question 10 options:

	Give personnel a break from their normal jobs
	Verify inventory records with actual quantities
	Collect data in advance of formal audits
	Satisfy management metric requirements