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1. Refers to the problem that warehouses are stocked infrequently, on a regular schedule, and in larger lots, but inventory depletion in contrast is done frequently, at irregular intervals, and in small quantities,
A. Spoilage
B. In-out flow imbalance
C. Shrinkage
D. Stockout
2. Why is it important to know the shelf or maximum storage life of each stock item ?
A. To encourage bigger and less frequent orders
B. To encourage suppliers and vendors to stock larger quantity lots
C. To make it easier to decrease inventory turns
D. To decrease the risk of losses caused by rust, rot, and spoilage
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