Preview Questions Inventory Controller | Role Specific Skill

Question 1: What is the primary disadvantage of using a LIFO (Last In, First Out) inventory system for construction materials?

Which action should you take?

Choose only one option

It increases the risk of stockouts

It can lead to increased holding costs

It may result in obsolete stock being used first

It complicates the stock valuation process

Question 2: How can an inventory controller improve supplier performance in a construction project?

Which action should you take?

Choose only one option

By ordering only from a few suppliers without diversifying

By relying on a single supplier for all materials

By focusing solely on price reduction during negotiations

By implementing performance reviews, maintaining regular communication, and addressing issues promptly

Question 3: How can an inventory controller effectively manage urgent material orders in construction projects?

Which action should you take?

Choose only one option

By having a real-time tracking system in place for expedited shipping and order fulfillment

By placing bulk orders in anticipation of future shortages

By relying on historical demand data to expedite processing

By manually contacting suppliers for urgent stock updates

Question 4: Why is it essential to incorporate supplier performance data in inventory management reporting?

Which action should you take?

Choose only one option

It allows for better vendor selection and improves stock reliability and order accuracy

It focuses only on the cost per unit, ignoring other critical factors

It increases the number of suppliers to select from, reducing reliability

It complicates the report, making it harder to understand material needs

Question 5: In data reporting, what is the importance of setting inventory thresholds (e.g., reorder levels)?

Which action should you take?

Choose only one option

It allows for a more flexible reporting structure to accommodate dynamic demand

It provides clear indicators for replenishment actions, preventing stockouts and delays

It helps in forecasting long-term material usage

It optimizes supplier contracts and reduces procurement costs

Question 6: How can inventory data be used to forecast future material needs in construction projects?

Which action should you take?

Choose only one option

By analyzing historical usage patterns and adjusting for future project schedules

By making estimates based on the budget alone

By only tracking the most commonly used materials

By relying on supplier lead times without adjustments