inventory management Flashcards
Which of the following best describes the primary goal of effective inventory management?
Having enough products and supplies available when needed
A veterinary practice normally sells approximately 120 bottles of canine medications to clients every 3 months. It takes 4 days to get an order from the distributor. The clinic is closed on Sundays. At what inventory level (# of remaining bottles) should a reorder be placed?
6
At a veterinary practice, the lead technician keeps tight control of supplies and products and knows by heart all reorder points and phone numbers of distributors and manufacturers. The technician is away from the office for an extended illness, during which time the practice runs out of several products and supplies. Which of the following would have prevented this problem?
The technician should have recorded in a central location the reorder points and phone numbers for the vendors.
Which of the following best describes a product distributor?
A vendor who sells products made by several manufacturers
It is most appropriate to reorder products when it is determined that they can be resold during which of the following time periods?
3 months
A veterinary technician in charge of inventory management for a practice spends one morning per week on this task. Prior to calling vendors to reorder products and supplies, which of the following is the most appropriate initial task to perform?
Count the inventory currently on the shelves.
Which of the following best describes a reorder point?
The amount a stock level reaches before it must be resupplied
Which of the following is most appropriate to study before determining a reorder point or quantity of a product?
Sales history
Which of the following is most likely to influence a reorder point of a product?
Seasonality and lead time
Which of the following could be a problem when using a just-in-time product or supply reordering method?
Vendors’ backlogs
Which of the following is the most appropriate way for an inventory manager to receive and process an incoming order?
Inspect the order, compare it to the invoice and order book, and put new items behind old ones on the shelf.
During a weekly physical inventory, an inventory manager finds an unopened, expired vaccine on the clinic’s shelf. Which of the following is the most appropriate course of action?
Call the distributor and ask if it will take the vaccine back.
During a weekly physical inventory, an inventory manager finds open bottle of expired canine vitamin pills on the clinic’s shelf. Approximately 20 pills are left. Which of the following is the most appropriate course of action?
Mix the pills in water and cat litter, and throw the mixture in a trash can.
During a weekly physical inventory, an inventory manager finds an unopened, expired controlled substance in the clinic’s locked medicine cabinet. Which of the following is the most appropriate course of action?
Submit the medication to a facility certified to dispose of it.
Which of the following best describes a product markup?
The price a clinic paid for a product multiplied by a percentage to recover inventory management costs
