Question 1

The most common method of liquidating slow-moving merchandise is:

Accepted Answer

A) a markdown. 
B) the one-day only sale. 
C) quantity discounts for volume purchases. 
D) an advertising blitz. 
A) a markdown. 
B) the one-day only sale. 
C) quantity discounts for volume purchases. 
D) an advertising blitz.

Question 2

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

Accepted Answer

A) Partial 
B) Physical 
C) Perpetual 
D) ABC 
A) Partial 
B) Physical 
C) Perpetual 
D) ABC

Question 3

A retail version of just-in-time inventory control is called:

Accepted Answer

A) EDI. 
B) TQM. 
C) efficient consumer response. 
D) JIT II. 
A) EDI. 
B) TQM. 
C) efficient consumer response. 
D) JIT II.

Question 4

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

Accepted Answer

<b>1.Develop an accurate sales forecast.

Question 5

In the ABC method of inventory,B refers to:

Accepted Answer

A) items that account for a moderate dollar usage volume. 
B) items that account for a high dollar usage volume. 
C) items that account for low dollar usage volume. 
D) None of the above 
A) items that account for a moderate dollar usage volume. 
B) items that account for a high dollar usage volume. 
C) items that account for low dollar usage volume. 
D) None of the above

Question 6

According to your authors:

Accepted Answer

A) JIT involves the consolidation of manufacturing processes. 
B) almost any change leading to more efficient inventory use can be considered a part of JIT. 
C) only large companies with long manufacturing runs can benefit from the implementation of JIT. 
D) manufacturing runs need to be large to justify set-up costs in a JIT environment. 
A) JIT involves the consolidation of manufacturing processes. 
B) almost any change leading to more efficient inventory use can be considered a part of JIT. 
C) only large companies with long manufacturing runs can benefit from the implementation of JIT. 
D) manufacturing runs need to be large to justify set-up costs in a JIT environment.

Question 7

Discuss the ABC method of inventory control.

Accepted Answer

The ABC method is one such approach,focu

Question 8

A POS system can be set up for less than ________.

Accepted Answer

A) $1,000 
B) $10,000 
C) $5,000 
D) $15,000 
A) $1,000 
B) $10,000 
C) $5,000 
D) $15,000

Question 9

When it comes to catching and prosecuting shoplifters:

Accepted Answer

A) there is only a 1 in 100 chance a shoplifter will go before a judge. 
B) nearly ½ of all shoplifters are caught and prosecuted. 
C) women and juveniles are most frequently caught,nearly 98% of the time. 
D) the store owner or employees must catch the shoplifter in the store to make the charges stick. 
A) there is only a 1 in 100 chance a shoplifter will go before a judge. 
B) nearly ½ of all shoplifters are caught and prosecuted. 
C) women and juveniles are most frequently caught,nearly 98% of the time. 
D) the store owner or employees must catch the shoplifter in the store to make the charges stick.

Question 10

When storage space or the type of item does not suit the two-bin system,the owner can use the ________.

Accepted Answer

A) sales system 
B) inventory system 
C) tag system 
D) weighted average system 
A) sales system 
B) inventory system 
C) tag system 
D) weighted average system

Question 11

The ________ inventory control system relies on the validity of the 80/20 rule.

Accepted Answer

A) partial 
B) perpetual 
C) visual 
D) ABC 
A) partial 
B) perpetual 
C) visual 
D) ABC

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A physical inventory count should be taken at least:

Accepted Answer

A) once a week. 
B) once a year. 
C) every six months. 
D) daily. 
A) once a week. 
B) once a year. 
C) every six months. 
D) daily.

Question 15

By their very nature,"C" items give a firm the opportunity to:

Accepted Answer

A) keep little safety stock. 
B) use minimal inventory control procedures. 
C) justify the latest POS or product bar coding systems. 
D) use basic analytical tools like EOQ and reorder point analysis. 
A) keep little safety stock. 
B) use minimal inventory control procedures. 
C) justify the latest POS or product bar coding systems. 
D) use basic analytical tools like EOQ and reorder point analysis.

Question 16

Computerized point-of-sale systems have given small business owners the ability to use perpetual inventory control systems across a larger portion of their inventories.

Accepted Answer

A) True 
 B)False

Question 17

"Just-in-time" inventory control techniques are most successful in what type of environment?

Accepted Answer

A) Repetitive manufacturing operations where inventory levels are significant at the outset 
B) Where product requirements are customized for each customer 
C) Where a company changes suppliers regularly and those suppliers are independent of the manufacturer 
D) Where inventory levels have been reduced to safety stock levels 
A) Repetitive manufacturing operations where inventory levels are significant at the outset 
B) Where product requirements are customized for each customer 
C) Where a company changes suppliers regularly and those suppliers are independent of the manufacturer 
D) Where inventory levels have been reduced to safety stock levels

Question 18

The ABC inventory control system causes managers to:

Accepted Answer

A) not keep a large safety stock on "A" items because it ties up too much cash. 
B) keep a large safety stock on "C" items because they generate the greatest revenue. 
C) keep a large safety stock on "A" items. 
D) keep small levels of safety stock for "C" items because they are of relatively little value. 
A) not keep a large safety stock on "A" items because it ties up too much cash. 
B) keep a large safety stock on "C" items because they generate the greatest revenue. 
C) keep a large safety stock on "A" items. 
D) keep small levels of safety stock for "C" items because they are of relatively little value.

Question 19

One force driving the move to JIT inventory management is competition among companies to provide excellent customer service.

Accepted Answer

A) True 
 B)False

Question 20

The 80/20 rule suggests that business owners:

Accepted Answer

A) try to exercise control 80% of the time over 20% of their inventory. 
B) identify those inventory items that represent the greatest value to the business and focus inventory control efforts on them. 
C) focus on the 80% of their inventory that only produces 20% of their results in order to improve performance. 
D) try to earn 20% more out of the 80% of their inventory that isn't producing. 
A) try to exercise control 80% of the time over 20% of their inventory. 
B) identify those inventory items that represent the greatest value to the business and focus inventory control efforts on them. 
C) focus on the 80% of their inventory that only produces 20% of their results in order to improve performance. 
D) try to earn 20% more out of the 80% of their inventory that isn't producing.

Exam 20: Managing Inventory

The most common method of liquidating slow-moving merchandise is:

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

A retail version of just-in-time inventory control is called:

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

In the ABC method of inventory,B refers to:

According to your authors:

Discuss the ABC method of inventory control.

A POS system can be set up for less than ________.

When it comes to catching and prosecuting shoplifters:

When storage space or the type of item does not suit the two-bin system,the owner can use the ________.

The ________ inventory control system relies on the validity of the 80/20 rule.

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

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

A physical inventory count should be taken at least:

By their very nature,"C" items give a firm the opportunity to:

Computerized point-of-sale systems have given small business owners the ability to use perpetual inventory control systems across a larger portion of their inventories.

"Just-in-time" inventory control techniques are most successful in what type of environment?

The ABC inventory control system causes managers to:

One force driving the move to JIT inventory management is competition among companies to provide excellent customer service.

The 80/20 rule suggests that business owners:

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

Filters