INVENTORY MANAGEMENT QUIZ

1. Inventory management has many goals. Select the correct answer:

A. Operating Efficiency
B. Minimum Capital Investment
C. Formulation
D. Customer Service
E. All of the above

2. Inventory costs generally include:

A. Raw Materials
B. Freight
C. Insurance
D. All of the above

3. Which item below is not affected by inventory control?

A. Demurrage Charges
B. Quality Control
C. Plant Scheduling
D. None of the above

4. Inventory control allows management to take advantage of market conditions:

True___ False___

5. A general line 300 ton per day feed plant has exactly the same inventory problems
as an all bulk 100 ton per day plant:

True___ False___

6. While not usually practical it would be advantageous to have an ingredient supply

that would carry 6 days production volume:

True___ False___

7. Which item below does not concern itself with amount of ingredient inventory you
should have?

A. Transit Time
B. Bin Flow Design
C. Ingredient Availability
D. Product Demand
8. One characteristic of intuitive ingredient inventory control is that it is generally
effective in the larger feed plants:

True___ False___

9. The bin below could be measured in the following

manner to determine its approximate level:

A. Measure 1/2 way to either point B or C from D1or D2.

B. Measure to point A - then estimate.
C. Measure 2/3 of the distance to either D1- B or D2 - C.
D. Measure 1/3 of the distance to either D1- B or D2 - C.

10. The advantage of a round ingredient bin is:

A. It empties from the bottom first.

B. It prevents bridging in the bin.
C. More space is usable.
D. None of the above.

11. When a bin is being discharged faster than it is being charged, the larger particles
tend to draw of first:

True___ False___

13. The advantage of rail shipment as compared to trucks is:

A. Reliable timing of arrival.

B. Storage of ingredients on track.
C. Easier to unload.
D. Less lead time required.