Inventory planning and control

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“In this Inventory planning and control Interview Questions and Answers guide you will learn that Inventory Management and Inventory Control must be designed to meet the dictates of the marketplace and support the company's strategic plan. Learn basic and advance concepts of Inventory planning and control or get preparation of Inventory planning and control Jobs Interview by our Inventory planning and control Interview Questions and Answers Guide.”



38 Inventory Planning And Control Questions And Answers

1⟩ What is a two-bin system?

1. A system in which everything is split between two storage bins

2. A system in which two full bins of an item are always held in stock

3. A system in which suppliers deliver two bins at a time

4. A system in which orders are placed when only one complete bin of stock is remaining

A system in which orders are placed when only one complete bin of stock is remaining

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2⟩ Cycle inventory is required as?

1. One or more stages in the operation cannot supply all the items it produces simultaneously

2. Compensation for the uncertainties inherent in supply and demand

3. Compensation for differences in the timing of supply and demand

4. Material cannot be transported instantaneously between the point of supply and the point of demand

One or more stages in the operation cannot supply all the items it produces simultaneously

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3⟩ The EOQ formula has been criticized in a number of areas. Which of the following is not an area of common criticism?

1. The assumptions included in the models

2. Small errors in estimating will not result in a significant deviation from the EOQ

3. The real costs of stock in operations

4. The use of the models as prescriptive devices

Small errors in estimating will not result in a significant deviation from the EOQ

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4⟩ Buffer inventory is required as?

1. Compensation for differences in the timing of supply and demand

2. Compensation for the uncertainties inherent in supply and demand

3. One or more stages in the operation cannot supply all the items it produces simultaneously

4. Material cannot be transported instantaneously between the point of supply and the point of demand

Compensation for the uncertainties inherent in supply and demand

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5⟩ What does periodic review mean?

☛ Ordering inventory at a predetermined re-order level

☛ Ordering inventory when it falls below the designated safety stock level

☛ Ordering inventory in consultation with suppliers relative to their available capacity

☛ Ordering inventory to supplier call-offs on an as required basis

☛ Ordering inventory at a fixed and regular time interval

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6⟩ How would you determine the value of inventory?

The value can be found using four methods in inventory control. The first is the specific cost in which each item's cost is added together for the inventory's value. A second method is to use the weighted average of the costs for a period to determine value. A third method is first in, first out. In this method value is measured using the latest costs of goods while working towards the beginning of the period until all goods in inventory are valued. The final method is last in, first out. In this method the costs of gods at the beginning of the period are used to determine the inventory's value.

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7⟩ Tell me what is inventory control?

Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers.

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8⟩ One of the underlying assumptions of the EOQ model is that?

1. Replenishment is non-instantaneous

2. Demand is unstable and unpredictable

3. The purchase price per unit varies with the quantity ordered

4. There is a point where stockholding costs are equal to ordering costs

5. A doubling of demand requires a doubling of the order quantity

There is a point where stockholding costs are equal to ordering costs

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9⟩ Periodic review means?

1. Ordering inventory at a predetermined re-order level

2. Ordering inventory when it falls below the designated safety stock level

3. Ordering inventory in consultation with suppliers relative to their available capacity

4. Ordering inventory to supplier call-offs on an as required basis

5. Ordering inventory at a fixed and regular time interval

Ordering inventory at a fixed and regular time interval

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12⟩ What would you expect, if inventory controls are followed?

By following your inventory policy you should be able to realize important advantages in inventory control. The first is reduced costs for inventories, along with reduced amounts of inventory. Theft and shrinkage should also be reduced if inventory policy is followed. The final benefit will be increased profits for the store.

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13⟩ Under the ABC system of inventory priorities a Class A item is?

1. The 80% of high-value items that account for around 20% the total stock value

2. The 20% of high-value items that account for around 20% the total stock value

3. The 20% of high-value items that account for around 80% the total stock value

4. The 80% of high-value items that account for around 80% the total stock value

The 20% of high-value items that account for around 80% the total stock value

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14⟩ Which of these statements is correct?

1. Will depend on how many related parts are required in the same period

2. Is used to calculate how much safety stock should be carried

3. Is a formula that calculates a realistic purchase price for an item

4. Should be calculated once a year

5. Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock

Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock

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15⟩ Tell me about the kinds of reordering systems that can be used in inventory control?

There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order period use fixed times of reorder with various order quantities to replenish inventory to preset levels. The final system, just in time uses a constant flow of goods to match the level of demand.

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18⟩ Tell me what makes a good forecasting model?

A good forecast model will have reasonable costs. the accuracy of its forecasts will allow good decision making. The model will have ample data available for its use and a relevant time span. The model finally will have a low interference level.

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