Question 1

Perpetual inventory systems:

Accepted Answer

A)  are relatively inexpensive to use and therefore quite popular among discount retailers.
B)  are not particularly effective for keeping accurate track of large,expensive items.
C)  require consistent use of the inventory sheets in order to provide accurate results.
D)  are the simplest and quickest to use of all inventory systems.E) A) and D)
F) B) and C)

Question 2

The ________ inventory system is designed to maintain a running count of the items in inventory.

Accepted Answer

A)  perpetual
B)  ABC
C)  visual control
D)  JITE) A) and B)
F) A) and C)

Question 3

Today a small growing company can improve their working relationships with both suppliers and customers through the application of ________.

Accepted Answer

A)  electronic data processing (EDP) 
B)  cloud-based systems
C)  electronic fund processing (EFP) 
D)  customer relationship management (CRM) E) A) and D)
F) B) and C)

Question 4

Explain the concept of the "just-in-time" inventory control technique.Under what circumstances would JIT be most appropriate?

Accepted Answer

The just-in-time system of inventory con...

Question 5

Which of the following would most likely use a perpetual inventory system?

Accepted Answer

A)  A hardware store
B)  A department store
C)  A landscaping/greenhouse operation
D)  A retailer of large appliancesE) B) and D)
F) B) and C)

Question 6

The most common method of controlling inventory in a small business is the ________ system.

Accepted Answer

A)  floor sample
B)  two-bin system
C)  partial
D)  visualE) All of the above
F) A) and D)

Question 7

For changes in inventory management to be considered consistent with a "just-in-time" philosophy they must use both EDI and POS technology to manage the inventories.

Accepted Answer

A) True 
 B)False

Question 8

In a two-bin system,the amount of stock in the second bin should equal the quantity ordered.

Accepted Answer

A) True 
 B)False

Question 9

Employers can reduce employee theft through:

Accepted Answer

A)  careful screening of employees during hiring.
B)  only hiring relatives and the friends of current employees.
C)  the use of metal detectors and random strip searches of employees.
D)  searching employees' lockers and cars during work hours.E) B) and D)
F) None of the above

Question 10

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

Accepted Answer

A) True 
 B)False

Question 11

Doing daily inspections of the cash register tape to check for employee theft are of little value since the theft would have already taken place and it would be difficult to trace and prove at that point.

Accepted Answer

A) True 
 B)False

Question 12

The primary human elements on which successful JIT systems are built are:

Accepted Answer

A)  mutual trust and teamwork & productivity.
B)  mutual trust and teamwork and empowerment.
C)  lower labor cost and productivity.
D)  high profit and lower labor cost.E) A) and D)
F) C) and D)

Question 13

Companies experience a number of benefits from JIT including:

Accepted Answer

A)  better customer acceptance of their products and services.
B)  increased job satisfaction among employees.
C)  a reduction of inventory and handling costs.
D)  longer equipment life and lower maintenance costs.E) B) and D)
F) C) and D)

Question 14

Because they keep continuous track on each item added to or taken from inventory,perpetual inventory control systems eliminate the need for a physical inventory count.

Accepted Answer

A) True 
 B)False

Question 15

JIT II differs from other production improvement methods in that:

Accepted Answer

A)  it requires the close cooperation of companies and their suppliers.
B)  it uses teams.
C)  it empowers through extensive training of employees.
D)  it makes heavy use of computer technology.E) A) and D)
F) All of the above

Question 16

Carrying unsold inventory from one year to the next is senseless since it represents an investment earning no return and it ties up working capital that could be put to more productive uses.

Accepted Answer

A) True 
 B)False

Question 17

If an owner or his/her relatives take the product home without properly logging it out,employees will perceive that it is okay and will be more likely to "steal" from the company in this way.

Accepted Answer

A) True 
 B)False

Question 18

The ultimate goal for every business is to drive the inventory to ________.

Accepted Answer

A)  zero
B)  below average
C)  average
D)  above averageE) All of the above
F) None of the above

Question 19

Impulse shoplifters steal on the spur of the moment when they succumb to temptation.

Accepted Answer

A) True 
 B)False

Question 20

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Inventory

Today a small growing company can improve their working relationships with both suppliers and customers through the application of ________.

Correct AnswerverifiedShow Answer

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

Correct AnswerverifiedShow Answer

The most common method of controlling inventory in a small business is the ________ system.

Correct AnswerverifiedShow Answer

The primary human elements on which successful JIT systems are built are:

Correct AnswerverifiedShow Answer

Doing daily inspections of the cash register tape to check for employee theft are of little value since the theft would have already taken place and it would be difficult to trace and prove at that point.

Correct AnswerverifiedShow Answer

For changes in inventory management to be considered consistent with a "just-in-time" philosophy they must use both EDI and POS technology to manage the inventories.

Correct AnswerverifiedShow Answer

In a two-bin system,the amount of stock in the second bin should equal the quantity ordered.

Correct AnswerverifiedShow Answer

The ultimate goal for every business is to drive the inventory to ________.

Correct AnswerverifiedShow Answer

JIT II differs from other production improvement methods in that:

Correct AnswerverifiedShow Answer

Companies experience a number of benefits from JIT including:

Correct AnswerverifiedShow Answer

Because they keep continuous track on each item added to or taken from inventory,perpetual inventory control systems eliminate the need for a physical inventory count.

Correct AnswerverifiedShow Answer

Which of the following would most likely use a perpetual inventory system?

Correct AnswerverifiedShow Answer

Perpetual inventory systems:

Correct AnswerverifiedShow Answer

Employers can reduce employee theft through:

Correct AnswerverifiedShow Answer

Explain the concept of the "just-in-time" inventory control technique.Under what circumstances would JIT be most appropriate?

Correct AnswerverifiedThe just-in-time system of inventory con...View AnswerShow Answer

Impulse shoplifters steal on the spur of the moment when they succumb to temptation.

Correct AnswerverifiedShow Answer

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

Correct AnswerverifiedShow Answer

If an owner or his/her relatives take the product home without properly logging it out,employees will perceive that it is okay and will be more likely to "steal" from the company in this way.

Correct AnswerverifiedShow Answer

The ________ inventory system is designed to maintain a running count of the items in inventory.

Correct AnswerverifiedShow Answer

Carrying unsold inventory from one year to the next is senseless since it represents an investment earning no return and it ties up working capital that could be put to more productive uses.

Correct AnswerverifiedShow Answer

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The just-in-time system of inventory con...
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