Exam 18: Managing Inventory

At a technical level,JIT is most effective in repetitive manufacturing operations where there are significant inventory levels,where production requirements can be forecast accurately,and where suppliers are an integral part of the system.

Managing inventory effectively requires a business owner to monitor the company's inventory turnover ratio and to compare it with that of other firms of larger size in a different industry.

Small business owners should avoid cutting prices on slow-moving items since it is better to hold onto them and try to sell them later at normal prices.

One of the best ways to prevent shoplifting is to train store personnel to be aware of shoplifters' habits and to be alert for possible theft.

Which of the following would most likely use a perpetual inventory system?

The two primary human elements on which successful JIT systems are built are:

In ABC method of inventory,C refers to:

Point of sale (POS)systems do not perform any of the functions of a traditional cash register but they do maintain an up-to-the minute inventory count.

Keeping internal records current is a simple but effective deterrent to employee theft.

The inventory turnover ratio is computed by:

Electronic data interchange (EDI)is an ordering system used by owners to submit their inventory orders directly to suppliers using bar codes and scanning wands.

When conducting a physical inventory,________ involves counting a number of items on a continuous basis.

The purpose of ABC inventory analysis is:

Which inventory control system is designed to maintain a running count of the items in inventory?

JIT II in the retail and service industries is more commonly called efficient customer response.

Most employee theft:

JIT II differs from other production improvement methods in that:

A valuable shoplifting reduction technique is to train employees on what to watch for in potential shoplifters.

Juveniles account for approximately one-fifth of all shoplifters.

Visual inventory control systems work best with firms that have strong variations in their sales.