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Question 1

An unfortunate side effect of using automated packing, wrapping and labelling machines is the corresponding increase in non-biodegradable waste.

Options :

A : TRUE

B : FALSE

Answer: A

Question 2

Which classification of items are mid-value items that contribute to organizational success, so they need good inventory management controls in place?

Options :

A : A

B : B

C : C

D : D

Answer: B

Question 3

Which of the following is true for Just in time – JIT. Select all that apply?

Options :

A : Aims to bring inventory levels down to minimal levels or, in its purest form, have no inventory.

B : Any disruption in a Just-in-time system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

C :

Buyers should adopt JIT with ALL suppliers

D : Can be used as an inventory control system to mitigate over-supply.

E :

Just in time, or JIT, is an operations management or inventory control system that aims to reduce wasted resources by minimising inventory. It coordinates demand and supply by purchasing, transporting and processing materials ‘just in time’ for when they are needed in the manufacturing process.

JIT should NOT be adopted with all suppliers as this is not practical. It should be adopted when appropriate because any disruption in a JIT system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

Answer: A,B,D

Question 4

Once the sales team enters an order, the MRP system refers to current stock levels and calculates how many of each product needs to be manufactured.

Options :

A : TRUE

B : FALSE

Answer: A

Question 5

Which of the following are Inventory control techniques that organisations can use? Select all that apply

Options :

A : JIT

B : Kanban

C : MRP

D : PIP

Answer: A,B,C