Lesson 8.9.1

8.9.1 Stock control Quiz: OCR Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 8.9.1, Stock control: 20 multiple choice questions for the OCR Business (H431), Unit 8: Operations, written with Revision Ninja.

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The 20 questions

  1. What name is given to the minimum stock level kept for unexpected demand surges?

    • Maximum stock
    • Lead time stock
    • Reorder level
    • Buffer stock

  2. What term describes the duration between placing a supplier order and receiving the stock?

    • Buffer time
    • Reorder period
    • Cycle time
    • Lead time

  3. Which Japanese lean system uses visual cards or signals to request inventory replenishment?

    • Kaizen
    • Andon
    • Poka-yoke
    • Kanban

  4. Which stock management strategy aims to minimise holding costs by receiving goods as required?

    • Buffer stock control
    • Batch production
    • Just in Time
    • Economic order quantity

  5. On a traditional stock control chart, what does the horizontal dotted line at the bottom represent?

    • Reorder level
    • Lead time
    • Buffer stock
    • Maximum stock level

  6. Which financial cost arises from tying up funds in stock rather than investing them elsewhere?

    • Storage cost
    • Stockout cost
    • Depreciation cost
    • Opportunity cost

  7. What stock control method orders inventory at set regular intervals, such as every Monday morning?

    • Fixed time reordering
    • Just in Time
    • Fixed reorder level
    • Economic order quantity

  8. What order size minimises the combined total of stock holding costs and stock ordering costs?

    • Economic order quantity
    • Maximum reorder level
    • Batch production size
    • Buffer stock quantity

  9. Daily usage is 20 units, lead time is 4 days, and buffer stock is 30 units. Calculate reorder level.

    • 80 units
    • 110 units
    • 140 units
    • 50 units

  10. A factory uses 40 components daily with a 3-day lead time and zero buffer stock. Calculate reorder level.

    • 123 units
    • 160 units
    • 43 units
    • 120 units

  11. Maximum stock capacity is 800 units and current stock is 150 units. Calculate maximum reorder quantity possible.

    • 650 units
    • 150 units
    • 950 units
    • 800 units

  12. What electronic system automatically updates inventory records at checkouts using barcodes?

    • CAD
    • EPOS
    • CAM
    • EDI

  13. A restaurant orders stock every Friday regardless of existing inventory levels. Which method is this?

    • Fixed time reordering
    • Kanban system
    • Buffer stock control
    • Fixed reorder level

  14. Which production method relies most heavily on precise, reliable stock control systems like JIT?

    • Flow production
    • Custom production
    • Job production
    • Craft production

  15. What is the immediate effect on annual inventory holding costs if batch order size increases?

    • Costs increase
    • Costs remain unchanged
    • Costs decrease
    • Costs drop to zero

  16. What key advantage does holding a high level of buffer stock provide to a firm?

    • Improves cash flow
    • Reduces storage costs
    • Prevents stockouts
    • Eliminates waste

  17. What happens to ordering costs per unit per year when a business places fewer, larger orders?

    • Costs decrease
    • Costs double
    • Costs remain constant
    • Costs increase

  18. What major operational risk is associated with operating a strict Just in Time stock system?

    • Excess holding costs
    • Production stoppages
    • High storage waste
    • Capital tied up

  19. Which formula calculates the reorder level on a stock control chart?

    • Lead time + usage x buffer
    • Lead time x usage + buffer
    • Lead time x usage - buffer
    • Lead time / usage + buffer

  20. Which technology uses radio waves to track stock movement automatically through a warehouse?

    • EFTPOS
    • HTML
    • RFID
    • EPOS

All OCR Business quizzes