Preview Questions Inventory Manager | Role Specific Skill

Question 1: How does cost-volume-profit analysis assist in inventory management for energy projects?

Which action should you take?

Choose only one option

By identifying the level of inventory needed to break even and optimize profitability

By simplifying the decision-making process by eliminating variable costs

By allocating more resources to high-risk inventory

By focusing on the direct costs without considering fixed costs

Question 2: What method would you use to determine if overstocking is contributing to excessive carrying costs in energy sector inventory management?

Which action should you take?

Choose only one option

By conducting an ABC analysis of inventory

By analyzing monthly procurement costs

By reviewing the number of stockouts over the last quarter

By comparing current stock levels to historical demand patterns

Question 3: How do you balance the need for cost control with the necessity to maintain sufficient safety stock levels in energy production facilities?

Which action should you take?

Choose only one option

By ignoring safety stock and solely relying on just-in-time inventory

By focusing on minimizing stock-outs and ignoring associated costs

By optimizing safety stock based on historical demand and lead time while maintaining cost thresholds

By minimizing safety stock to reduce storage costs

Question 4: What is the best practice to ensure vendor performance is continuously monitored in a complex energy supply chain?

Which action should you take?

Choose only one option

Using a one-time audit report

Monitoring only financial transactions with vendors

Relying on vendor self-assessments

Establishing clear Key Performance Indicators (KPIs) and regular reviews

Question 5: What is the key benefit of using demand forecasting in managing inventory for critical equipment in the energy sector?

Which action should you take?

Choose only one option

It prevents obsolescence by removing aging stock

It helps optimize stock levels and reduce stockouts or overstocking

It eliminates the need for periodic inventory audits

It minimizes the need for safety stock

Question 6: How would you determine the optimal reorder point (ROP) for critical spare parts in a power distribution network?

Which action should you take?

Choose only one option

By using past purchase order history

By analyzing lead time demand and safety stock levels

By focusing on current inventory levels alone

By factoring in supplier lead time variability