Material Management Block 1 Questions
and Answers Already Passed
What is the purpose of inventory control in material management?
✔✔To maintain accurate records of materials, ensuring availability when needed and preventing
excess stock
What does the term "stock level" refer to?
✔✔The amount of inventory on hand for a particular item
What is the difference between a reorder point and an order point in inventory management?
✔✔The reorder point triggers the need to reorder when stock reaches a minimum level, while the
order point is the quantity to be ordered
What does FIFO stand for, and why is it important in inventory management?
✔✔First In, First Out; it ensures that older stock is used or sold before newer stock to prevent
obsolescence
What is a demand forecast used for in material management?
1
,✔✔To predict future material needs based on historical usage, trends, and operational
requirements
What does the term "economic order quantity" (EOQ) refer to?
✔✔The optimal order quantity that minimizes the total cost of ordering and holding inventory
What is the purpose of a material requirements plan (MRP)?
✔✔To determine the quantity and timing of materials needed for production based on demand
and lead times
How does an inventory management system help improve efficiency?
✔✔By tracking stock levels, orders, and usage, ensuring that the right materials are available at
the right time
What is the role of a material handler in material management?
✔✔To physically move, store, and organize materials in the warehouse or storage areas
What is the definition of "just-in-time" (JIT) inventory management?
2
, ✔✔A strategy that aims to minimize inventory by ordering materials only when needed for
production
What does the term "lead time" refer to in material management?
✔✔The amount of time between placing an order for materials and receiving them
What is the purpose of a stocktaking or physical inventory process?
✔✔To verify the accuracy of inventory records and ensure that actual stock levels match
recorded data
What is a backorder?
✔✔An order for materials that cannot be filled at the time of purchase due to insufficient stock
What does "ABC analysis" refer to in inventory management?
✔✔A method for classifying inventory into three categories (A, B, and C) based on the value
and turnover rate of the items
What is the purpose of a material issue request?
3
and Answers Already Passed
What is the purpose of inventory control in material management?
✔✔To maintain accurate records of materials, ensuring availability when needed and preventing
excess stock
What does the term "stock level" refer to?
✔✔The amount of inventory on hand for a particular item
What is the difference between a reorder point and an order point in inventory management?
✔✔The reorder point triggers the need to reorder when stock reaches a minimum level, while the
order point is the quantity to be ordered
What does FIFO stand for, and why is it important in inventory management?
✔✔First In, First Out; it ensures that older stock is used or sold before newer stock to prevent
obsolescence
What is a demand forecast used for in material management?
1
,✔✔To predict future material needs based on historical usage, trends, and operational
requirements
What does the term "economic order quantity" (EOQ) refer to?
✔✔The optimal order quantity that minimizes the total cost of ordering and holding inventory
What is the purpose of a material requirements plan (MRP)?
✔✔To determine the quantity and timing of materials needed for production based on demand
and lead times
How does an inventory management system help improve efficiency?
✔✔By tracking stock levels, orders, and usage, ensuring that the right materials are available at
the right time
What is the role of a material handler in material management?
✔✔To physically move, store, and organize materials in the warehouse or storage areas
What is the definition of "just-in-time" (JIT) inventory management?
2
, ✔✔A strategy that aims to minimize inventory by ordering materials only when needed for
production
What does the term "lead time" refer to in material management?
✔✔The amount of time between placing an order for materials and receiving them
What is the purpose of a stocktaking or physical inventory process?
✔✔To verify the accuracy of inventory records and ensure that actual stock levels match
recorded data
What is a backorder?
✔✔An order for materials that cannot be filled at the time of purchase due to insufficient stock
What does "ABC analysis" refer to in inventory management?
✔✔A method for classifying inventory into three categories (A, B, and C) based on the value
and turnover rate of the items
What is the purpose of a material issue request?
3
