Inventory planning and control Interview Preparation Guide

Elevate your Inventory planning and control interview readiness with our detailed compilation of 41 questions. Our questions cover a wide range of topics in Inventory planning and control to ensure youre well-prepared. Whether youre new to the field or have years of experience, these questions are designed to help you succeed. Download the free PDF to have all 41 questions at your fingertips. This resource is designed to boost your confidence and ensure youre interview-ready.
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41 Inventory planning and control Questions and Answers:

1 :: Buffer inventory is required as?

1. Compensation for differences in the timing of supply and demand
2. Compensation for the uncertainties inherent in supply and demand
3. One or more stages in the operation cannot supply all the items it produces simultaneously
4. Material cannot be transported instantaneously between the point of supply and the point of demand

Compensation for the uncertainties inherent in supply and demand
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2 :: Cycle inventory is required as?

1. One or more stages in the operation cannot supply all the items it produces simultaneously
2. Compensation for the uncertainties inherent in supply and demand
3. Compensation for differences in the timing of supply and demand
4. Material cannot be transported instantaneously between the point of supply and the point of demand

One or more stages in the operation cannot supply all the items it produces simultaneously

3 :: The EOQ formula has been criticized in a number of areas. Which of the following is not an area of common criticism?

1. The assumptions included in the models
2. Small errors in estimating will not result in a significant deviation from the EOQ
3. The real costs of stock in operations
4. The use of the models as prescriptive devices

Small errors in estimating will not result in a significant deviation from the EOQ

4 :: What is a two-bin system?

1. A system in which everything is split between two storage bins
2. A system in which two full bins of an item are always held in stock
3. A system in which suppliers deliver two bins at a time
4. A system in which orders are placed when only one complete bin of stock is remaining

A system in which orders are placed when only one complete bin of stock is remaining

5 :: Under the ABC system of inventory priorities a Class A item is?

1. The 80% of high-value items that account for around 20% the total stock value
2. The 20% of high-value items that account for around 20% the total stock value
3. The 20% of high-value items that account for around 80% the total stock value
4. The 80% of high-value items that account for around 80% the total stock value

The 20% of high-value items that account for around 80% the total stock value
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6 :: Order-point or re-order-level inventory control is used for which of the following?

1. Production scheduling
2. Monitoring the workings of a MRP system
3. Control of dependent demand inventory items
4. Inventory quality control
5. Control of independent demand inventory items

Control of independent demand inventory items

7 :: Which of these statements is correct?

1. Will depend on how many related parts are required in the same period
2. Is used to calculate how much safety stock should be carried
3. Is a formula that calculates a realistic purchase price for an item
4. Should be calculated once a year
5. Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock

Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock

8 :: One of the underlying assumptions of the EOQ model is that?

1. Replenishment is non-instantaneous
2. Demand is unstable and unpredictable
3. The purchase price per unit varies with the quantity ordered
4. There is a point where stockholding costs are equal to ordering costs
5. A doubling of demand requires a doubling of the order quantity

There is a point where stockholding costs are equal to ordering costs

9 :: Which would be the most appropriate method of controlling stock in a retail shop?

1. Order Point
2. Materials Requirements Planning
3. Just-in-Time
4. Periodic Review
5. Two-Bin System

Periodic Review

10 :: Which would be the most appropriate method of controlling stock in a hotel bar?

1. Materials Requirements Planning
2. Just-in-Time
3. Two-Bin System
4. Order Point
5. Periodic Review
6. Poke-Yoka

Periodic Review
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