Retail Organizations Inventory Management Multiple Choice Questions with Answers – PDF Download

MCQ 1: Which of the following is an example of purchasing costs?

1. incoming freight
2. storage costs
3. insurance
4. spoilage

MCQ 2: If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be:

1. 678 packages
2. 648 packages
3. 658 packages
4. 668 packages

MCQ 3: The cost of product failure, error prevention and appraisals can be classified under:

1. stocking costs
2. stock-out costs
3. costs of quality
4. shrinkage costs

MCQ 4: The activities related to coordinating, controlling and planning flow of inventory are classified as:

1. decisional management
2. throughput management
3. inventory management
4. manufacturing management

MCQ 5: If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be:

1. $200
2. $190
3. $160
4. $180