Inventory Manager Interview Questions & Answers Download PDF
Sharpen your Inventory Manager interview expertise with our handpicked 60 questions. Our questions cover a wide range of topics in Inventory Manager to ensure you're well-prepared. Whether you're new to the field or have years of experience, these questions are designed to help you succeed. Access the free PDF to get all 60 questions and give yourself the best chance of acing your Inventory Manager interview. This resource is perfect for thorough preparation and confidence building.
60 Inventory Manager Questions and Answers:
Inventory Manager Job Interview Questions Table of Contents:
1 :: Explain me what is lead time?
Lead time is the period of time from which a order for goods is placed until it is received by the store. Lead time is an important consideration for determining when orders should be placed.
2 :: Tell me do You Know When Should A Physical Inventory Be Taken?
A inventory should be taken at least once a year. If items are perishable, seasonal or highly demanded a inventory should be taken more often.
3 :: Tell us what is the EOQ formula?
The EOQ formula is the square root of 2 times demand times order completion cost divided by carrying cost. The mathematical formula is square root of 2DS/C.
4 :: Explain me what types of forecasting can I do?
There are two types of forecasting qualitative and quantitative. Qualitative uses personal opinions to determine forecasts. Quantitative uses numerical data and statistical modeling to determine forecasts.
5 :: Explain me what is demand?
Demand is the quantity that customers are willing to buy. Demand can be found through forecasting and is needed to find the EOQ level.
6 :: Explain me can Forecasting Help In Controlling Inventory?
Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.
7 :: Tell us do I need to recompute stocking costs for the EOQ level?
Yes, in order to compare stock costs when using the EOQ model you must compute the costs for both the original level and the EOQ level of order quantities.
8 :: Tell me if I get a discount will it effect the EOQ model?
Yes, a discount will cause the basic EOQ model to fail. To use a discount in determine a EOQ you must use the EOQ model with quantity discounts.
9 :: Please explain what do the letters in the EOQ and stocking cost formula stand for?
The letters in the formulas represent the quantity ordered(Q), the carrying cost of a unit(C), the demand for the units(D) and the cost of completing a order(S).
10 :: Tell us what if there is no savings or the models produce even results?
If there is no savings a error in the calculations may have occurred or the model does not fit your case. For instances were the total stocking costs are even you may use either order quantity.
11 :: Please explain what should be recorded in a physical count of inventory?
When conducting a physical inventory the classification, location and number in stock of a good should be recorded.
12 :: Tell us can A Computer Help In Forecasting Future Demand?
Yes, In the market today there are many computer software packages that can compute forecasted demand for goods held in inventory.
13 :: Tell us is Gr/ir Account Related To Inventory?
If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted.
If you are not involved about inventory, then the system does not need the GR/IR account when the IR is posted, the system needs a G/L instead of the GR/IR account.
If you are not involved about inventory, then the system does not need the GR/IR account when the IR is posted, the system needs a G/L instead of the GR/IR account.
14 :: Tell me what is interference?
Interference is a factor in forecasting demand. Interference is made up of all the factors that a forecaster has no control over. Factors that may be considered interference include natural disasters, unusual customer demands, or rare events in the business period.
15 :: Explain me what are the important considerations in inventory control?
For inventory control to work at its best a store must consider the costs of acquisition, carrying, ordering, and stock-out. the store must also look at its reordering system, its budgeting for inventory, insurance and forecasted demand.
16 :: Do you know what Makes A Good Forecasting Model?
A good forecast model will have reasonable costs. the accuracy of its forecasts will allow good decision making. The model will have ample data available for its use and a relevant time span. The model finally will have a low interference level.
17 :: Tell me what Are Finished Goods?
Inventories are those completely manufactured products which are ready for sale. Stocks of raw materials and work-in-process facilitate production, while stock of finished goods is required for smooth marketing operations. Thus, inventories serve as a link between the production and consumption of goods.
18 :: Tell me how do you determine the numbers to use in the EOQ formula?
To determine which numbers to use you must look for the following items. The number of items per order is the quantity(Q). The number of items that can be sold is D. D may be the forecast demand for that particular good. The cost of placing the order is used for S. The final number to find is the carrying cost(C) which is the cost of the item to be held in inventory.
19 :: Do you know what is inventory control?
Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers.
20 :: Explain me what makes EOQ work for inventory control?
The EOQ works if its four assumptions match the case it is used on. The assumptions are: A. Annual demand, carrying costs and ordering costs can be estimated. B. Inventory level is divided by 2, no safety stock, goods used uniformly and are gone by next order. C. Stock-out, customer responsiveness and other costs not considered. D. No quantity discounts.
21 :: Explain me what makes a good forecasting model?
A good forecast model will have reasonable costs. the accuracy of its forecasts will allow good decision making. The model will have ample data available for its use and a relevant time span. The model finally will have a low interference level.
22 :: Please explain do You Apply The Above Practices To All Parts Of Your Inventory (finished Goods, Raw Material, Works In Process And Spare Parts) And In All Organizational Entities?
One of the most common mistakes made by supply organizations is looking at only a small subset of all inventory-the finished goods sitting in major warehouses-even though raw materials, works in process, spare parts and even goods in retail stores can make up 50 percent of the total. As a result, they miss potential savings. An organizational map of all inventories will help better prioritize ways to reduce inventories. And all the inventory techniques we've discussed apply.
23 :: Tell me what Are The Types Of Reordering Systems That Can Be Used In Inventory Control?
There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory.
The fixed order period use fixed times of reorder with various order quantities to replenish inventory to preset levels. The final system, just in time uses a constant flow of goods to match the level of demand.
The fixed order period use fixed times of reorder with various order quantities to replenish inventory to preset levels. The final system, just in time uses a constant flow of goods to match the level of demand.
24 :: Tell us what are the types of reordering systems that can be used in inventory control?
There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order period use fixed times of reorder with various order quantities to replenish inventory to preset levels. The final system, just in time uses a constant flow of goods to match the level of demand.
25 :: Do you know when should reorders be placed?
Times for reordering goods vary dependent on the control system you use and its lead time. In fixed order quantities reorders should be placed when the safety stock is reached. In fixed period systems the reordering is done at set time periods. In just in time systems reordering is based on matching the demand with supply. For just in time a close watch on inventory levels is needed so that reorders are placed before goods are out of stock.
