1) Which of the following defines “the acquisition of goods and services”? a) JIT b) Warehousing c) Business d) Procurement 2) What does "stockout" mean? a) Having stock stored outside the warehouse b) Running out of stock of an inventory item c) A safety net of products d) Having more supply than demand 3) When companies correctly implement JIT: a) JIT generates continuous improvement and can enhance return on investment, quality, and efficiency. b) JIT produces continuous flow and employee satisfaction. c) JIT results in continuous inventory reduction. d) A large number of employees are laid off. 4) _______________ specify decision rules regarding when inventory replenishment should be initiated and the quantity that should be ordered from the supplying node in the supply network. a) Inventory b) Kanban c) Inventory policies d) JIT 5) Kanban are typically: a) Companies that implement the JIT strategy. b) Tickets used in the JIT strategy to achieve its objectives. c) Different parts of a company’s inventory. d) Japanese business strategies. 6) The JIT strategy requires significant space and costs for maintaining stock. a) TRUE b) FALSE 7) Dell’s business model is an example of: a) Pull system. b) Push system. c) Inventory reduction. d) Software implementation. 8) Building strong relationships with suppliers is crucial when implementing JIT. a) TRUE b) FALSE 9) Inventory reduction focuses on extending delivery times and increasing inventory turnover rates. a) TRUE b) FALSE 10) Work in process items are not considered part of the inventory. a) TRUE b) FALSE 11) In JIT, inventory is viewed as waste. a) TRUE b) FALSE 12) In a pull system, it's not advisable to maintain extra inventory at every stage of production. a) TRUE b) FALSE 13) Effective inventory management primarily involves defining the type and percentage of goods to be stocked. a) TRUE b) FALSE 14) Uncertainty is one of the key reasons for maintaining an inventory. a) TRUE b) FALSE

ESP 1320 LOGISTICS TEST 2 PRACTICE - INVENTORY

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