Inventory Management Quiz

To meet inventory needs...

-Have a wide assortment of stock -Keep stock levels as low as possible -Purchase in bulk for lower prices -Do not end up with out of date items

Physical counts may be different because of..

-Theft -Software/human error

Supply Requisition form

A request from a deparment to purchase an item

Purchase order

Contact between a buyer and a seller for the purchase of items

FIFO

First in first out (sell older inventory first)

Inventory reorder point

Indicates when you want to reorder (minimum amount of inventory)

Just-In-Time process

Inventory arrives "just in time" before supply runs out

Perpetual Inventory Method

Keeps track of inventory levels on a daily basis

LIFO

Last in first out (newer inventory first)

Stock card

Paper perpetual inventory method

Cost of carrying too much inventory

Storage, Insurance, Taxes, Obsolescence

All businesses need to...

Take a phyical ount of inventory at least once or twice a year

Invoice

The bill

Employee Inventory policies

Transaction must be handled by a manager, Items purchased need a reciept, Bags must be searched

First step after receiving order

Verify the shipment with the packing slip

Logistics

location sources for inventory/supplies

Purchasing plan

look at sales forecast and sales history

POS

point of sale (loaded into cash registers)

Periodic Inventory Method

taking a physical count of stock regularly (week/month)