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Supply Chain Inventory Management

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Supply Chain Inventory Management

Supply chain and inventory management illustration

📋 Part 1: Multiple Choice & Discussion Questions

1. What is the primary difference between tangible and intangible inventory?

Tangible can be touched and measured; intangible cannot

Tangible is more expensive than intangible

Tangible inventory spoils faster

There is no difference

2. Which of the following are common types of tangible inventory? (Check all that apply)

Raw materials

Work-in-progress goods

Finished products

Customer goodwill

Brand reputation

3. Which items would typically be categorized as raw materials in a furniture manufacturing company?

Completed chairs and tables

Wood, screws, and fabric

Employee training programs

Customer service policies

4. What is a major benefit of keeping raw materials on hand?

Reduces storage costs

Prevents production delays

Eliminates the need for suppliers

Guarantees product quality

5. What is a major disadvantage of keeping large amounts of raw materials on hand?

Improved customer satisfaction

Higher storage and carrying costs

Better supplier relationships

Faster production times

6. How do managers balance the benefits and risks of inventory management?
7. Why might a company choose to maintain minimal raw material inventory?
8. What role does technology play in modern supply chain inventory management?

✏️ Part 2: Fill in the Blanks

9. Complete the following sentences about inventory management:

a) _________________ inventory includes items that can be physically touched and counted, while _________________ inventory consists of assets that cannot be physically handled.

b) The three main categories of tangible inventory are raw materials, _________________, and _________________.

c) Keeping excess raw materials on hand can lead to higher _________________ costs and potential _________________.

d) A well-managed supply chain helps companies maintain the right _________________ of inventory to meet customer demand without excessive _________________.

e) Examples of intangible inventory include brand reputation, _________________, and _________________.

💭 Part 3: Critical Thinking

10. Scenario Analysis: A bakery must decide how much flour to keep in inventory. Discuss three factors the manager should consider when making this decision.
11. Compare and contrast the inventory management challenges faced by a grocery store versus an automobile manufacturer.
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