Exam 20: Managing Inventory

A periodic physical inventory count:

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

When watching for shoplifters,owners should remember that impulse shoplifters tend to work alone while juveniles and professionals work in groups.

"Just-in-time" inventory control techniques are best suited for manufacturing operations where there are significant inventory levels and where the manufacturing operations are unique and varied,producing custom items.

________ is simply the cost per unit of an item multiplied by the annual quantity used.For instance,the owner of a stereo shop may find that she sold 190 pairs of a popular brand of speaker during the previous year.

The purpose of classifying items according to their value in ABC analysis is to establish the proper degree of control over each inventory item.

In a retail environment,rather than build inventories of merchandise that might sit for months before selling (or worse,never sell at all),retailers using ________ replenish their inventories constantly on an as-needed basis.

Information needed for a perpetual inventory system is an item's:

The radical change involved in JIT II is that suppliers' employees work onsite with the customer's plant and there is a sharing of what is normally confidential information.

The dollar usage volume of an item is how the importance of the item to inventory is measured in an ABC inventory system.

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.

The computerization of cash registers has:

An advantage of JIT is that it:

Simon counts a few items of his inventory every week,working his way through the entire inventory during the year.Simon is using cycle counting to control his inventory.

Generally,training employees is more expensive than the losses to shoplifting but if employees are trained shoplifters will eventually leave your store alone.

In the ABC method of inventory,A refers to:

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.

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

A visual inventory system works best in firms where:

Small businesses have had employees steal by putting merchandise in the trash,take it out,and then return to the dumpster and remove it after their shift is over.