MCQ quiz on Inventory management multiple choice questions and answers on Inventory management MCQ questions quiz on Inventory management objectives questions with answer test pdf.

Inventory Management MCQ Questions and Answers Quiz

1. Buffer stock is the level of stock

  1. Half of the actual stock
  2. At which the ordering process should start
  3. Minimum stock level below which actual stock should not fall
  4. Maximum stock in inventory

2. A fixed-interval ordering system would be used for items that have independent demand.

  1. true.
  2. false.

3. A store that sells daily newspapers could use the single-period model for reordering.

  1. true.
  2. false.

4. A two-bin system is essentially a simple reorder point system.

  1. true.
  2. false.

5. Average stock level can be calculated as

  1. Minimum stock level + ½ of Re-order level
  2. Maximum stock level + ½ of Re-order level
  3. Minimum stock level + 1/3 of Re-order level
  4. Maximum stock level + 1/3 of Re-order level

6. Buffer stock is the level of stock

  1. Half of the actual stock
  2. At which the ordering process should start
  3. Minimum stock level below which actual stock should not fall
  4. Maximum stock in inventory

7. Companies that can successfully use the A-B-C approach can avoid using EOQ models.

  1. true.
  2. false.

8. Holding and ordering costs are inversely related to each other.

  1. true.
  2. false.

9. If a decrease in unit price causes the average demand rate to increase, which one of these would not increase?

  1. the EOQ
  2. lead time
  3. annual holding cost
  4. the ROP

10. If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is 2 days, the ROP will be:

  1. 84
  2. 46
  3. 42
  4. none of these
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MCQ Multiple Choice Questions and Answers on Inventory Management

Inventory Management Question and Answer