1.Stock consists of all the goods and materials that are stored by an organization. It is a store of items that is kept for future use.
T or F
2.The sequence of stock replenishment and reduction to meet demand is repeated continuously in a stock cycle. In sequential order, place the corresponding Letter next to the item below to indicate the sequential order in which it occurs in the stock cycle:
1, 2, 3, 4, 5, 6
____At some point, the stock gets low and it is time for the organization to place another order
____An organization buys a number of units of an item from a supplier.
____Customers, either internal or external, create demands for the item.
____At an arranged time, these units are delivered.
____Units are removed from stock to meet these demands.
____(Unless they are needed immediately, the units are put into storage) replenishing the stock.
3.Finished good is one of three primary types of stock classifications, what are the other two:
4.____________________ is the function responsible for all decisions about stock in an organization.
5.The main purpose of stock is to give a buffer between supply and demand.
T or F
6.The function that has overall responsibility for moving materials through the supply chain is
__________________ or ___________________ .
7.Today, organizations realize that they can beneﬁt from using specialized companies to take over part, or all, of their logistics, leaving them free to concentrate on their core activities. This is called outsourcing with the specialized companies…third party logistics operators. The text book indicates 8 benefits, what are 4 of the benefits?
8.The text book indicates 12 inventory management activities that are entwined with logistics activities, what are four of the activities that are entwined with logistics?
9.Inventory management decisions are classified in 3 levels of decision, match the Decision with the corresponding level of decision:
____are concerned with implementing the strategies over the medium term; they look at more detail, involve fewer resources and some risk.
____ are most important, have effects over the long term, use many resources and are the most risky. These set the overall direction for operations.
____are concerned with implementing the tactics over the short term; they are the most detailed,
10.Business strategy sets the scene for all decisions about stocks, what are the 3 basic strategies?
11.A lean strategy tries to do every operation with the least possible resource – people, space, stock, equipment, time, money, etc. The text book identifies 6 areas where waste is likely to occur, what are they?
12.Underthe umbrellaoflean andagile strategies, organizations canfocus onspeciﬁcfeatures of their products and operations. The text book identifies 12 possible areas of focus; what are 6 of them?
13.Stocks appear as current assets in a company’s accounts. It is, therefore, important to have an accurate value for stocks, as this affects the overall value and performance of the company. The book indicates four main methods of valuing stocks; what are they?
14.All stocks incur costs; to minimize inventory costs organizations cannot do this by simply reducing stock. What are the four types of stock costs involved with inventory management?
15.According to the text book, what are two ways of assessing stock demand?