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wide assortment of stock -Keep stock levels as low as possible -Purchase in bulk for lower prices -Do not end up with out of date items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