Inventory and Warehouse Analytics

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Q.1 What is Inventory Analytics?

Inventory Analytics involves using data analysis and modeling to optimize inventory levels, reduce carrying costs, and improve order fulfillment.

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Q.2 Why is effective inventory management important?

Effective inventory management ensures products are available when needed, minimizes holding costs, and maximizes profitability.

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Q.3 What is the difference between inventory turnover and carrying cost?

Inventory turnover measures how quickly inventory is sold, while carrying cost refers to the expenses associated with holding inventory.

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Q.4 How does demand forecasting play a role in inventory management?

Demand forecasting uses data analysis and modeling to predict future customer demand, aiding in inventory planning.

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Q.5 What is the EOQ (Economic Order Quantity) model?

EOQ helps determine the optimal order quantity that minimizes total inventory costs, considering ordering and holding costs.

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Q.6 How does safety stock contribute to inventory management?

Safety stock acts as a buffer to account for demand variability and supply disruptions, ensuring product availability.

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Q.7 How can companies use ABC analysis for inventory classification?

ABC analysis categorizes inventory items into A, B, and C classes based on their value, helping prioritize management efforts.

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Q.8 What is the significance of lead time in inventory management?

Lead time measures the time it takes for an order to be fulfilled, influencing reorder points and stock levels.

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Q.9 How does JIT (Just-in-Time) inventory management work?

JIT aims to minimize inventory levels by ordering and producing goods just in time to meet customer demand, reducing holding costs.

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Q.10 What is cycle counting in warehouse management?

Cycle counting is an ongoing process of counting a portion of inventory items regularly to maintain accuracy without a full physical inventory.

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Q.11 How do companies use RFID technology in warehouse management?

RFID technology enables real-time tracking and identification of inventory items, improving accuracy and efficiency.

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Q.12 What is the role of data analytics in optimizing warehouse layout and design?

Data analytics help determine optimal storage configurations, reducing travel times and improving warehouse efficiency.

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Q.13 How does slotting optimization impact warehouse operations?

Slotting optimization arranges items within a warehouse for efficient picking and storage, reducing labor costs and errors.

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Q.14 What is the impact of automation in warehouse management?

Automation enhances efficiency by using robots, conveyors, and AI-driven systems to handle tasks like picking and packing.

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Q.15 How can companies use predictive maintenance in warehouse equipment?

Predictive maintenance uses data and analytics to predict equipment failures, reducing downtime and maintenance costs.

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Q.16 What is the role of a Warehouse Management System (WMS)?

A WMS automates warehouse operations, including inventory tracking, order processing, and optimizing storage.

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Q.17 How does demand-driven replenishment improve inventory management?

Demand-driven replenishment uses real-time data to trigger orders only when demand arises, reducing overstock and understock situations.

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Q.18 How do companies use machine learning for demand forecasting?

Machine learning algorithms analyze historical data to make accurate demand forecasts, improving inventory planning.

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Q.19 What is cross-docking, and how does it impact warehouse efficiency?

Cross-docking involves transferring goods directly from receiving to shipping, minimizing storage time and handling costs.

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Q.20 What role does barcoding play in inventory and warehouse management?

Barcoding enables accurate tracking and identification of items, streamlining processes like order picking and inventory audits.

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Q.21 How does a well-organized warehouse contribute to operational efficiency?

A well-organized warehouse minimizes search times, reduces errors, and improves order fulfillment speed.

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Q.22 What is the role of a Warehouse Supervisor in warehouse operations?

A Warehouse Supervisor oversees day-to-day operations, including staffing, scheduling, and inventory management.

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Q.23 How does real-time visibility improve warehouse management?

Real-time visibility provides insights into the status of inventory, orders, and equipment, allowing for proactive decision-making.

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Q.24 What is the significance of inventory turnover ratio in inventory management?

The inventory turnover ratio measures how often inventory is sold and replenished, indicating the efficiency of inventory management.

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Q.25 How do companies use geospatial analytics in logistics and warehouse management?

Geospatial analytics helps optimize routes and locations, improving efficiency in warehouse operations and transportation.

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Q.26 How can companies optimize their warehouse staff productivity?

Optimization strategies include training, workload balancing, and using technology to streamline tasks.

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Q.27 What are the benefits of using mobile apps for warehouse management?

Mobile apps enable real-time access to data, improving communication, and providing greater flexibility for warehouse staff.

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Q.28 How does dynamic slotting adapt to changing warehouse needs?

Dynamic slotting continuously adjusts item placement based on factors like demand, seasonality, and order patterns.

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Q.29 What is the role of SKU (Stock Keeping Unit) rationalization in inventory management?

SKU rationalization involves evaluating and eliminating low-performing SKUs, reducing inventory complexity and costs.

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Q.30 How can companies optimize their warehouse labor utilization?

Strategies include labor forecasting, automation, and employee training to maximize productivity.

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Q.31 How does supplier collaboration impact inventory management?

Collaborating with suppliers can improve lead times, reduce costs, and ensure timely deliveries, enhancing inventory management.

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Q.32 What is the impact of omnichannel retail on warehouse operations?

Omnichannel retail requires warehouses to handle a mix of e-commerce and traditional retail orders, increasing complexity and the need for efficient processes.

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Q.33 How does dynamic demand forecasting enhance inventory management?

Dynamic demand forecasting continuously updates forecasts based on real-time data, improving inventory accuracy.

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Q.34 What is the role of reverse logistics in inventory management?

Reverse logistics manages the return and disposal of products, minimizing waste and handling returns efficiently.

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Q.35 How can companies achieve sustainability goals in their warehouses?

Sustainability practices include energy-efficient lighting, waste reduction, and responsible sourcing of materials.

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Q.36 What is the impact of real-time analytics on inventory decision-making?

Real-time analytics provide up-to-date insights into inventory levels, helping make informed decisions on restocking and order fulfillment.

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Q.37 How do companies use IoT sensors for warehouse monitoring?

IoT sensors track environmental conditions, equipment performance, and inventory movement, improving warehouse efficiency.

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Q.38 What is the role of a Warehouse Manager in warehouse operations?

A Warehouse Manager is responsible for overall warehouse performance, including staffing, budgeting, and process optimization.

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Q.39 How does ABC classification affect inventory management?

ABC classification prioritizes inventory items based on their importance, allowing for focused management efforts.

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Q.40 What is the significance of a reorder point in inventory management?

A reorder point specifies when to reorder items to maintain sufficient stock levels and meet demand without stockouts.

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Q.41 How do companies use data analytics for demand sensing in inventory management?

Data analytics and machine learning are used to detect shifts in demand patterns, enabling responsive inventory adjustments.

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Q.42 How does RFID technology enhance inventory accuracy in warehouses?

RFID technology provides real-time tracking and identification, reducing errors in picking, shipping, and receiving.

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Q.43 What is the role of an Inventory Analyst in managing inventory levels?

An Inventory Analyst analyzes data and trends to optimize inventory levels, ensuring efficient stock management.

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Q.44 How do companies use machine learning for stockout prediction?

Machine learning models analyze historical data to predict stockouts, allowing for proactive stock replenishment.

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Q.45 What is the impact of seasonal demand on inventory management?

Seasonal demand fluctuations require adjusting inventory levels and production to meet changing customer needs.

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Q.46 How can companies optimize their warehouse layout for efficient picking and packing?

Warehouse layout optimization involves arranging products and aisles to minimize travel time and labor in picking and packing processes.

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Q.47 How does cross-functional collaboration improve warehouse and inventory management?

Collaboration across departments such as logistics, procurement, and sales ensures alignment in inventory and warehouse strategies.

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Q.48 What are the advantages of using cloud-based inventory management software?

Cloud-based software offers accessibility, scalability, and real-time data updates for managing inventory efficiently.

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Q.49 What is the role of a demand planner in inventory management?

Demand planners use data analysis and forecasting techniques to estimate future demand and optimize inventory levels.

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Q.50 How can companies optimize their safety stock levels?

Safety stock optimization involves considering demand variability, lead time, and service level goals to determine appropriate safety stock levels.

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Q.51 How does a Warehouse Management System (WMS) improve inventory tracking?

WMS provides real-time visibility into inventory locations, quantities, and movements, reducing errors and improving accuracy.

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Q.52 How can companies implement sustainability practices in their warehouse operations?

Sustainability practices include energy-efficient lighting, waste recycling, and eco-friendly packaging materials.

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Q.53 What is the role of a Warehouse Operations Manager?

A Warehouse Operations Manager oversees daily warehouse activities, including staff supervision, order processing, and safety compliance.

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Q.54 How does dynamic routing optimize warehouse transportation?

Dynamic routing software finds the most efficient delivery routes, reducing fuel costs and transportation time.

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Q.55 How can companies use demand-supply synchronization to improve inventory management?

Synchronization aligns production and inventory levels with actual customer demand, reducing waste and enhancing responsiveness.

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Q.56 What are the key metrics for evaluating warehouse performance?

Metrics include order accuracy, picking and packing efficiency, inventory turnover, and on-time shipments, among others.

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Q.57 How does slotting optimization improve warehouse picking?

Slotting optimization arranges items for easy access and efficient picking, reducing labor and errors in the picking process.

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Q.58 How do companies use real-time data analytics to detect anomalies in warehouse operations?

Real-time data analytics identify anomalies and inefficiencies, enabling prompt corrective actions in warehouse operations.

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Q.59 What is the role of a Warehouse Supervisor in managing staff and processes?

A Warehouse Supervisor is responsible for staff scheduling, training, and ensuring efficient warehouse operations.

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Q.60 How does inventory turnover ratio affect financial performance?

A high inventory turnover ratio indicates efficient inventory management and can positively impact cash flow and profitability.

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Q.61 How can companies use machine learning for demand forecasting in warehouse management?

Machine learning algorithms analyze historical data to make accurate demand forecasts, improving inventory planning.

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Q.62 What is the significance of a safety stock policy in inventory management?

A safety stock policy defines when and how much safety stock to maintain, ensuring product availability during fluctuations in demand or supply.

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Q.63 How do companies use RFID technology for asset tracking in warehouses?

RFID technology helps track the movement and location of assets, equipment, and inventory within the warehouse.

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Q.64 How can companies optimize their warehouse space utilization?

Space utilization optimization involves maximizing storage capacity and minimizing wasted space through efficient layout and storage methods.

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Q.65 What is the role of a Warehouse Clerk in inventory and warehouse management?

A Warehouse Clerk performs tasks such as receiving, picking, packing, and maintaining accurate inventory records.

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Q.66 How does real-time visibility enhance inventory accuracy in warehouses?

Real-time visibility provides up-to-date information on inventory levels, locations, and movements, reducing errors and improving accuracy.

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Q.67 What is the role of a Warehouse Director in overseeing warehouse operations?

A Warehouse Director provides strategic leadership, sets goals, and ensures overall efficiency and compliance within the warehouse.

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Q.68 How do companies use IoT sensors for temperature monitoring in warehouses?

IoT sensors monitor temperature conditions, ensuring the integrity of temperature-sensitive inventory items.

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Q.69 What is the significance of demand-supply matching in inventory management?

Demand-supply matching ensures that production and inventory align with customer demand, preventing overstock and understock situations.

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Q.70 How can companies optimize their warehouse labor management?

Optimization involves workforce planning, performance measurement, and training to maximize labor efficiency.

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Q.71 How does dynamic slotting adaptation improve warehouse efficiency?

Dynamic slotting continuously adjusts item placement based on changing demand patterns, optimizing picking and storage.

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Q.72 What is the role of a Warehouse Coordinator in managing warehouse activities?

A Warehouse Coordinator assists in inventory control, order fulfillment, and coordinating tasks among warehouse staff.

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Q.73 How can companies implement sustainability initiatives in their warehouses?

Initiatives include energy-efficient lighting, waste reduction, and environmentally friendly packaging materials.

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Q.74 What is the impact of real-time data analytics on warehouse operations?

Real-time data analytics provide insights into inventory, order status, and equipment performance, enabling proactive decision-making.

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Q.75 How do companies use machine learning for inventory optimization?

Machine learning models analyze data to determine optimal inventory levels, reducing carrying costs while meeting demand.

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Q.76 How can companies optimize their reverse logistics processes?

Optimization includes efficient returns handling, recycling, and minimizing the cost and environmental impact of returns.

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Q.77 What is the role of a Warehouse Technician in supporting warehouse operations?

A Warehouse Technician performs various tasks such as equipment maintenance, order picking, and inventory handling.

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Q.78 How do companies use data analytics to identify slow-moving inventory items?

Data analytics help identify and manage slow-moving or obsolete inventory, reducing holding costs.

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Q.79 How does digital transformation impact warehouse and inventory management?

Digital transformation integrates technology and data analytics to improve efficiency, accuracy, and visibility in warehouse operations.

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Q.80 What methods would you use to create an inventory forecast?

The main methods for successful inventory forecasting are trend, graphical, qualitative and quantitative. The forecasting method to choose is based on known stocking issues, personal insights, feedback from sales, customer input, mathematical analysis and market research.

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Q.81 How can companies measure the success and efficiency of their inventory and warehouse management strategies?

Metrics such as inventory turnover, order accuracy rates, and warehouse utilization help assess performance and effectiveness.

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Q.82 How can forecasting improve inventory management?

Demand forecasting goes beyond simple estimates of product demand, looking into complex patterns over time to produce more accurate and timely predictions. Through better demand, an organization will be able to better manage inventory, increase revenue, and improve customer support.

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Q.83 How can forecasting affect inventory?

Inventory forecasting is a method used to predict inventory levels for a future time period. It also helps keep track of sales and demand so you can better manage purchase. It helps to increase company's revenue and decrease unnecessary costs.

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Q.84 How do you forecast inventory turns?

The faster you “turn” your inventory, the more inventory you'll need in a year. A basic, oft-used formula is Sales ÷ Inventory measured over a period of one year.

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Q.85 Why is it important to measure forecast accuracy?

It is important to measure and evaluate forecast accuracy using genuine forecasts as, the test data is not used in determining the forecasts, it should provide a reliable indication of how well the model is likely to forecast on new data.

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Q.86 What is the safety stock formula?

The safety stock formula is: [maximum daily use multiplied by maximum lead time] less [average daily use multiplied by average lead time], gives us the value of the safety stock.

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Q.87 What is the best way to measure forecast accuracy?

A simple approach which is widely used to measure forecast accuracy is a technique called “Percent Difference” or “Percentage Error”, which is the difference between the actual volume and the forecast volume expressed as a percentage.

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Q.88 What is the best measure of forecast accuracy?

A simple measure of forecast accuracy is the mean or average of all the forecast error, also known as Mean Forecast Error or MFE.

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Q.89 What is the cycle inventory?

Cycle inventory, or cycle stock inventory, is the portion of inventory that a seller cycles through to fulfil regular sales orders. It represents a part of a business's standing inventory. Cycle inventory is used and replaced by new items, or turned over.

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Q.90 How do you evaluate a forecasting model?

Ideally, forecasting methods should be evaluated in the situations for which they will be used. Underlying the evaluation procedure is the need to test methods against reasonable alternatives. Evaluation consists of four steps: testing assumptions, testing data and methods, replicating outputs, and assessing outputs.

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Q.91 How do you measure forecast performance?

There are many standards and some not-so-standard, formulas companies use to determine the forecast accuracy and/or error. Some commonly used metrics include: Mean Absolute Deviation (MAD) which absolute of (Actual – Forecast) and Mean Absolute Percent Error (MAPE) which is 100 multiplied by absolute of ((Actual – Forecast)/Actual)

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Q.92 What is a forecast bias?

A forecast bias occurs when there are consistent differences between actual outcomes and previously generated forecasts of those quantities; that is: forecasts may have a general tendency to be too high or too low. A normal property of a good forecast is that it is not biased.

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Q.93 How EOQ is calculated?

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. The formula assumes that demand, ordering, and holding costs all remain constant. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.

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Q.94 How to use ABC analysis for inventory control?

ABC analysis is an inventory management technique that determines the value of inventory items based on their importance to the business. ABC ranks items on demand, cost and risk data, and inventory mangers group items into classes based on those criteria.

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Q.95 What do you understand by Material Requirements Planning (MRP) system?

A Material Requirements Planning (MRP) system is a planning and decision-making tool used in the production process which analyses current inventory levels vs. production capacity and the need to manufacture goods, based on forecasts. MRP schedules production as per bills of materials while minimizing inventory.

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Q.96 What do you understand by COGS?

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. The cost of goods sold for a particular service or product refers to the direct costs associated with its production, including labor necessary to produce the product and materials for the product. Hence, an increase in the cost of goods sold can decrease the gross profit.

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Q.97 What is a WMS ?

Warehouse management systems (WMS) can collect and analyze the data generated by warehouse operations. These programs can then provide robust insights and solutions to help optimize what goes on in the business.

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Q.98 What is big data in inventory and warehousing?

Big data in inventory and warehousing helps handle complex functions of tracking operations, assessing performance, predicting outcomes, and delivering competent service to end customers.

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Q.99 What is AI in inventory and warehousing?

AI is artificial intelligence, which is used to collect and analyze information and inventory processes, enabling companies to increase efficiency and boost revenues. In warehousing, AI is used to make demand predictions, modify orders, and re-route products in transit.

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Q.100 What are the typical sources of data which is used for data analytics?

The sources of data can be computers, online sources, cameras, environmental sources, or through personnel. Once the data is collected, it must be organized so it can be analyzed. This may take place on a spreadsheet or other form of software that can take statistical data.

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Q.101 How IoT is used in inventory and warehousing?

In the inventory and warehousing process of people and goods, IoT helps to track objects, but also to transfer current data of the transported assets. An IoT channel can also be used to remotely control elements in inventory and warehousing. This can save energy or avoid waiting times, for example.

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Q.102 How AI helps inventory and warehousing?

In its simplest form, AI can support back office functions and processes through the detection of anomalies and exceptions, highlighting issues before they become bigger problems. For more complex applications it provides 3PLs, shippers and carriers with insights based on the analysis of supply chain data.

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Q.103 What is involved in data analytics?

Data analysis involve retrieving and gathering large volumes of data, organizing it, and turning it into insights businesses can use to make better decisions and reach conclusions.

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Q.104 What is inventory analysis?

Inventory analysis is the process of examining inventory to determine the optimum amount a business should carry. By obtaining a clear picture of the inventory that keeps your company profitable, you can keep up with customer demand while increasing sales and controlling costs.

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Q.105 What is the purpose of inventory analysis?

Inventory analysis is the process of examining inventory to determine the optimum amount a business should carry. By obtaining a clear picture of the inventory that keeps your company profitable, you can keep up with customer demand while increasing sales and controlling costs.

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Q.106 What is the difference between inventory and stock?

The stock is part of inventory, but sometimes the terms are used differently depending on the context. Stock is the supply of finished goods available to sell to the end customer. Inventory can refer to finished goods, as well as components used to create a finished product.

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Q.107 What has been your experience with IoT products in inventory and warehouse analytics?

IoT expands to Internet of Things and it refers to applying computing devices which can connect to a network for data gathering, analysis and decision making. They have revolutionized inventory and warehouse analytics as it provides automation and has led to the emergence of Industry 4.0. I have extensive experience in using IoT in inventory and warehouse analytics and using it for analysis and decision making. It helps in improved utilization and maintenance.

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Q.108 Why do you want the inventory and warehouse analytics professional job?

I want the inventory and warehouse analytics professional job as I am passionate about making companies more efficient by using new technologies and take stock of present technology portfolio to maximize their utility.

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Q.109 Why do you want to work as inventory and warehouse analytics professional at this company?

Working as inventory and warehouse analytics professional at this company offers me more many avenues of growth and enhance my analytical skills. Your company has been in the domain of manufacturing capital goods and hence offers opportunities for future growth in inventory and warehouse analytics role. Also considering my education, skills and experience I see myself, more apt for the post.

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Q.110 What are your strengths as a inventory and warehouse analytics professional?

As a inventory and warehouse analytics professional I am having extensive experience on the new technologies as well as managing the present analytical technologies. I also have the requisite managerial skills for inventory and warehouse analytics.

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