Inventory & Resource Management Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory & Resource Management flashcards as text
What is the main advantage of using a digital inventory management system over a paper-based system in field operations?
Answer: Digital systems provide real-time updates, reduce errors, and improve data accessibility
Digital inventory systems offer real-time tracking, reduce human error, and allow multiple stakeholders to access current data simultaneously, improving overall management.
When allocating field resources across multiple project sites, which factor should be prioritized FIRST?
Answer: Critical needs and project priority rankings
Resource allocation should prioritize critical needs and project priority rankings to ensure the most important objectives receive adequate support.
A field associate is responsible for maintaining calibrated testing equipment. How often should calibration records typically be reviewed?
Answer: According to the manufacturer's recommended schedule or organizational policy
Calibration records should be reviewed according to the manufacturer's recommended schedule or organizational policy to ensure measurement accuracy and regulatory compliance.
What is the Economic Order Quantity (EOQ) model designed to determine?
Answer: The optimal order quantity that minimizes total inventory holding and ordering costs
EOQ calculates the optimal order quantity that minimizes the combined costs of ordering and holding inventory, balancing these two opposing cost factors.
Which practice helps prevent resource waste and ensures accountability in field supply management?
Answer: Implementing a check-out/check-in system with individual accountability records
A check-out/check-in system with accountability records ensures each resource transaction is tracked, reducing waste and enabling accurate inventory management.
During a field assignment, an associate notices that certain materials are approaching their expiration date. What is the appropriate action?
Answer: Flag them for expedited use, disposal per protocol, or return to inventory management
Expiring materials should be flagged for expedited use, proper disposal per protocol, or return to inventory management to minimize waste while ensuring regulatory compliance.
What is cycle counting, and why is it beneficial for field operations?
Answer: A continuous audit technique where subsets of inventory are counted on a rotating basis
Cycle counting involves regularly counting subsets of inventory on a rotating schedule, providing continuous accuracy verification without requiring a complete operational shutdown.