Inventory Control Q&A

Test Your Knowledge of Inventory Control!
Take this quick MCQ quiz to assess your understanding of inventory control techniques, types, and strategies used to manage stock efficiently in businesses. Perfect for students and professionals looking to sharpen their supply chain skills.

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1. Which of the following best defines inventory control?

Maximizing sales by reducing staff hours

Managing the flow of goods into and out of a business

Designing the layout of the store

Scheduling employee work shifts

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2. What is the main objective of inventory control?

To increase production volume

To reduce taxes on products

To maintain optimal inventory levels to meet customer demand

To automate every part of the business

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3. Which of the following is a type of inventory?

Vendor agreements

Raw materials

Customer feedback

Purchase orders

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4. FIFO in inventory control stands for:

Final In, Final Out

Free In, Free Out

First In, First Out

Fast In, Fast Out

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5. Which technique is used to categorize inventory based on value and usage?

ABC Analysis

EOQ

JIT

LIFO

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6. What does EOQ (Economic Order Quantity) primarily help with?

Determining minimum selling price

Optimizing workforce

Setting profit margins

Minimizing total ordering and holding costs

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7. In which inventory system are goods purchased only when needed?

EOQ

JIT (Just-In-Time)

FIFO

Batch Ordering

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8. LIFO (Last In, First Out) is commonly used in:

Electronics and Oil Industries

Agriculture

Retail Fashion Stores

Pharmaceuticals

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9. Safety stock is maintained to:

Improve the warehouse lighting

Eliminate the need for forecasting

Buffer against demand uncertainty

Avoid discounts

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10. A reorder point is triggered when:

Inventory exceeds capacity

New vendors are added

New product lines are launched

Inventory drops to a predefined level

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11. Which software is most commonly used for inventory control in large organizations?

Canva

SAP

Trello

Grammarly

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12. A real-world example of advanced inventory control can be found at:

KFC

Domino’s

Amazon Fulfillment Centers

IKEA cafeteria

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13. Which of the following is a disadvantage of poor inventory control?

Stockouts and excess inventory

Higher brand value

Increase in staff satisfaction

Lower shipping times

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14. Which of these is a non-perishable inventory where LIFO could be used?

Fresh vegetables

Smartphones

Bread

Dairy products

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15. Which of the following is NOT a goal of inventory control?

Reduce carrying cost

Increase working capital lockup

Improve order accuracy

Prevent product obsolescence

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16. Which factor most influences safety stock levels?

Employee satisfaction

Currency exchange rate

Demand variability and lead time

Brand popularity

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17. In which case would a company use a perpetual inventory system?

Where items are small and inexpensive

When inventory is rarely updated

When manual tracking is preferred

When real-time inventory tracking is necessary

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18. Which KPI is most useful to measure inventory control efficiency?

Bounce rate

Inventory Turnover Ratio

Customer Return Rate

Employee Attrition Rate

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19. What is a key feature of the “Push” inventory control system?

Based on real-time demand

Stocks are replenished only after they are used

Goods are produced in advance based on forecasted demand

Inventory levels are ignored

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20. What is the ideal outcome of effective inventory control?

Optimal stock with minimal holding cost and no stockouts

Increased inventory levels and higher expenses

Improved product recall process

Dependency on manual checks

Your score is

The average score is 90%

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