Inventory Management describes all stages of inventory management, including forecasting, purchasing, receiving, storage, and shipping, plus measurement systems and inventory record accuracy. The course also addresses inventory strategy, inventory policies, inventory counting, and more.
Upon successful completion of this course, participants will be able to:
- Cite the origination point of independent demand.
- Name the system that orders items based on production schedule, bill of materials, and on-hand inventory counts.
- Identify what a business is likely to create when machinery setup time is lengthy.
- List an example of investment inventory.
- Specify what to base the reorder point on.
- Cite a way to reduce safety stock and when to alter the number of units suggested by the EOQ formula.
- Define the replenishment strategy and cite a typical outcome of using it.
- Name a strategy used when wanting to increase market share while decreasing unit costs.
- Specify when outsourcing production makes most sense.
- Identify why resellers like working with manufactures that use the replenishment strategy.
- List the strategy to use when a company has highly variable demand and the strategy needing the largest investment in inventory.
- Choose when the customization strategy is most effective.
- Identify a result of a customer service policy mandating a high order fulfillment rate and a likely effect of a pricing deal.
- Specify when a formal receiving policy is most cost-effective and when it can cause problems.
- Cite the key issue with a batch sizing policy.
- Name an environment where production run size policies are most common.
- Cite the basis of the resource maximization policy.
- State why forecasting with direct linkage to customer systems do not always work.
- Specify when aggregating inventory by classification is not useful from a data entry efficiency perspective.
- Cite a cost-effective alternative when a lengthy forecast period is necessary and when forecasting by product families is useful.
- Identify the major impact of the bullwhip effect.
- List a reason that the CEO should be included in forecasting.
- List a valid reason for using an auction site to obtain supplier bids and a valid method for proactively monitoring purchase activity.
- Name an option for reducing inventory investment when a long-term volume discount cannot be obtained.
- Specify a cost most likely incurred when dealing with foreign suppliers.
- Cite information that must be standardized in a spend management system.
- Identify a solution when a company is spending a small amount amongst a high number of suppliers within a commodity code.
- Name where the min-max delivery range concept would be used.
- Cite why information on weight and cubic volume of inventory is needed.
- Choose a step that is not required in the process of determining which supplier deliveries to review.
- Identify an efficient way to move received goods to storage.
- Specify the goal of touch reduction and a characteristic of an advance shipping notice.
- Cite proper procedure for a delivery that is to be cross-checked.
- Name the person responsible for logging cubic volume of received goods.
- Specify when reslotting might improve efficiency.
- Define deadheading and the term for pallets pulled behind a motor vehicle.
- Identify the best equipment for accessing a narrow isle with several levels of rack.
- List a disadvantage of an automated storage and retrieval system.
- Cite what can reduce efficiency in a warehouse when mechanization is introduced.
- Identify a problem with a monument and something not at issue with positioning production cells with a large amount of surrounding space.
- Specify information that needs to be stored about inventory to engage in appropriate putaways.
- Cite a key component of a material requirements planning system and a key item needed to achieve very short production runs.
- Choose a concept to organize a factory around to shrink production wait times.
- Name an element of the fast equipment changeover concept.
- Specify when stacked storage optimization is an issue.
- Name a feature not necessary for a transportation management system.
- List a product issue that is probably the fault of the shipper.
- Define Kanban and an electronic notification of goods being shipped from the seller.
- Identify a disadvantage to ensuring full truckloads.
- Cite the usefulness of marking a grid on the shipping floor and container load planning.
- State what dunnage is used for.
- Choose the inventory disposal method likely to result in the highest return.
- Name a technique for preventing inventory obsolescence.
- Identify the focus of the hanging NCNR report.
- Cite the role of the Materials Review Board.
- Name a system that would include a 'where used' report.
- List a use for old count tags from the previous physical count and one for the reorder flag.
- Name a method for reducing the investment in a lifetime buy.
- List a way to detect errors in the bill of materials and the main benefit of reducing the number of product options.
- Identify a block to minimizing parts used.
- Cite an effect of designing for broad tolerance and adding other departments to the design team.
- Specify the area to which the design-for-assembly concept applies.
- Name a good data collection method for a mobile warehouse workforce.
- List a major problem with backflushing.
- Choose a good response to a sudden spike in error rates.
- Identify a cause of fading text on labels and when label adhesion is a major concern.
- Choose an action that would not improve physical inventory count.
- Identify how inventory items for counting would be selected when using the cycle counting method if reporting accurate inventory valuation has been a past problem.
- Specify when a periodic inventory system is most useful.
- Identify a good supplement to a perpetual inventory system.
- Cite a reason why information from physical inventory counts may result in less accurate inventory records and when 100% count analysis is used.
- Specify the intent of the total inventory concept.
- Name a reason why suppliers might be asked to package items in certain quantities.
- Choose an advantage of vertically integrating back into the supply chain.
- List something to consider when choosing a foreign supplier and an advantage of a stable production schedule.
- Identify a way to solve the problem of coordinating the activities of a lot of suppliers.
- List a problem with configuring smaller pallet sizes for expected orders.
- Identify why drop-shipping is used.
- Choose an item that is not a side effect of informal storage.
- Name an aspect of cross-docking.
- Specify when storing goods in fixed locations, setting aside warehouse space for specific customers, and warehousing by product family make sense.
- State the type of storage that should be invested in when a company has small numbers of small, expensive items and inventory that ages quickly.
- Name a storage solution that is likely to be invested in when cost of capital is low.
- Specify when stacking lanes and the honeycombing concept are useful.
- List a storage solution for off-sized items.
- Name the department responsible for proper sizing of the receiving area.
- Specify when narrower aisles can be used in a warehouse.
- Identify the most common warehouse pattern.
- Cite which area could be extensive if a zone picking system is used and a consideration when using storage trailers.
- State why employee parking should be planned to be far away from loading bays.
- Identify who will most likely be interested in the raw materials turnover figure.
- Cite the cause of a high finished goods turnover percentage and a high work-in-process turnover level.
- List an item that does not factor into calculating inventory accuracy.
- Name a result of the obsolete inventory percentage that can increase cash flow.
- Specify behavior that results when the opportunity cost of excess inventory measurement is used.
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