Exam 18: Managing Inventory

Owners do not need to prosecute juvenile shoplifters when they are caught,as the scare of getting caught is often enough to make them stop.

The inventory turnover ratio expresses the number of times per year the business turns over its inventory.

A ________ system performs all the functions of a traditional cash register and maintains an up-to-the minute inventory count.

Point-of-sale systems can be programmed to alert the business owner when key items drop below the reorder point.

Partial inventory systems are designed to maintain a running count of the items in inventory.

The basic principle of ABC analysis is that inventory costs are reduced when the small business owner spends time and effort controlling items representing the greatest inventory value.

Although only about 15 percent of shoplifters are professionals,they can severely damage a business.

What is the value of a physical inventory count? In what ways can it be done?

In ABC analysis,the dollar usage value of an item is determined by:

Combining ________ with a POS system gives a small business owner a state-of-the-art checkout system and further extends the abilities of the POS system in the information it provides the owner.

Participants in a study on fraud losses estimate that they lose about 6% of their annual revenues to employee theft and fraud.

Inventory management involves seven other interrelated steps.Identify each and explain their importance to inventory management.

In an ABC system of inventory control,________ is/are the measure of the relative importance of an item in the company's inventory.

Effective management of inventory begins with:

The ________ method of inventory control is the least effective for ensuring accuracy and reliability and often leads to stockouts.

Approximately 6% of the average price tag in a small business is there due to shoplifting losses.

Companies experience a number of benefits from JIT including:

An alternative to a two-bin system,wherever space or the type of item doesn't fit the system,would be a:

Studies show that older,less devoted employees steal from their companies most often,but long-time employees can cause more damage.

"C" items typically comprise a minor proportion of the small firm's inventory value.