Inventory Question
Interview Questions Answers - Inventory Management
[12:27 PM | ]
1. What is inventory control?
Answer: Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers.
2. What does inventory affect in a store?
Answer: Inventory levels and their values can affect the income of the store, the amount of taxes paid, and the total stocking cost.
3. How can the value of inventory be determined?
Answer: The value can be found using four methods in inventory control. The first is the specific cost in which each item's cost is added together for the inventory's value. A second method is to use the weighted average of the costs for a period to determine value. A third method is first in, first out. In this method value is measured using the latest costs of goods while working towards the beginning of the period until all goods in inventory are valued. The final method is last in, first out. In this method the costs of gods at the beginning of the period are used to determine the inventory's value much like FIFO.
4. What are the important considerations in inventory control?
Answer: For inventory control to work at its best a store must consider the costs of acquisition, carrying,ordering, and stock-out. the store must also look at its reordering system, its budgeting for inventory, insurance and forecasted demand.
5. What are the types of reordering systems that can be used in inventory control?
Answer: There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order period use fixed times of reorder with various order quantities to replenish
[12:27 PM | ]
1. What is inventory control?
Answer: Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers.
2. What does inventory affect in a store?
Answer: Inventory levels and their values can affect the income of the store, the amount of taxes paid, and the total stocking cost.
3. How can the value of inventory be determined?
Answer: The value can be found using four methods in inventory control. The first is the specific cost in which each item's cost is added together for the inventory's value. A second method is to use the weighted average of the costs for a period to determine value. A third method is first in, first out. In this method value is measured using the latest costs of goods while working towards the beginning of the period until all goods in inventory are valued. The final method is last in, first out. In this method the costs of gods at the beginning of the period are used to determine the inventory's value much like FIFO.
4. What are the important considerations in inventory control?
Answer: For inventory control to work at its best a store must consider the costs of acquisition, carrying,ordering, and stock-out. the store must also look at its reordering system, its budgeting for inventory, insurance and forecasted demand.
5. What are the types of reordering systems that can be used in inventory control?
Answer: There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order period use fixed times of reorder with various order quantities to replenish