NIOS Class 10 Warehouse Principles & Inventory Management Chapter 15 Types of Inventory Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 10 Warehouse Principles & Inventory Management Chapter 15 Types of Inventory and select need one. NIOS Class 10 Warehouse Principles & Inventory Management Chapter 15 Types of Inventory Question Answers Download PDF. NIOS Study Material of Class 10 Warehouse Principles & Inventory Management Notes Paper 259.
NIOS Class 10 Warehouse Principles & Inventory Management Chapter 15 Types of Inventory
Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Warehouse Principles & Inventory Management Chapter 15 Types of Inventory, NIOS Secondary Course Warehouse Principles & Inventory Management Solutions for All Chapters, You can practice these here.
Types of Inventory
Chapter: 15
Intext Questions 15.1
(i) Name the types of Business Activities.
Ans: Primary Industry, Secondary Industry and Tertiary industry.
(ii) What do you mean by industry?
Ans: The industry sector is defined as a sector where raw material gets changed into beneficial products.
Intext Questions 15.2
(i) Name the type of External Trade.
Ans: Export, Import and entrepôt.
(ii) What is Auxiliary Trade?
Ans: The term “Auxiliary to Trade’’ represents all those activities that offer aid to executing activities linked to trade and industry.
Intext Questions 15.3
(i) Name the sources of Raw Material.
Ans: Animal-Based, Plant-Based and Mineral-Based.
(ii) What are the types of raw material used in manufacturing business?
Ans: Raw materials, Work-in-process inventory, and finished goods inventory.
Intext Questions 15.4
(i) Mention the components of WIP while calculating the value of WIP.
Ans: Indirect Labour, Utilities, Insurance, Taxes and Depreciation.
(ii) What are Finished Goods?
Ans: Finished goods are goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.
Intext Questions 15.5
(i) What is MRO?
Ans: MRO stands for maintenance, repair, and operations. It refers to all the activities needed to keep a company’s facilities and production processes running smoothly.
(ii) What is Buffer Stock?
Ans: Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies.
| Terminal Exercise |
1. The Industrial enterprises produce consumer goods as well as machinery and equipment.
Ans: Business activities imply all those economic activities, whether directly or indirectly, created goods and services to satisfy customer needs and ensure profit earning through customer satisfaction. Business activities are classified into operating, investing, and financing activities.
The industry is engaged with producing, processing, or manufacturing goods. These types of business units are known as “ industrial enterprises”. The Industrial enterprises produce consumer goods as well as machinery and equipment. On the other hand, commerce activities include all the activities, which are necessary for storage and distribution of goods and services. Business is defined as a business or entity involved with industrial, commercial, or professional activities. Businesses can be for-profit items/services or non-profit groups that function to fulfil a charitable or social cause.
2. Recyclable waste becomes a secondary commodity in the manufacturing of finished goods.
Ans: Recyclable waste can indeed become a secondary commodity used in the manufacturing of finished goods through the process of recycling. By collecting and processing recyclable materials like paper, plastics, glass, and metals, they can be transformed into raw materials for the production of new products. Recycling also reduces the pollution of air, water, and land resulting from waste disposal. There are two broad types of recycling operations: internal and external. Internal recycling is the reuse in a manufacturing process of materials that are a waste product of that process.Recycling is the process of converting waste materials into new materials and objects. This concept often includes the recovery of energy from waste materials.
3. Demand is the sum of all customer orders and supply is the ability of the business to manufacture products to fulfil these demands.
Ans: Demand is the sum of all customer orders and supply is the ability of the business to manufacture products to fulfil these demands, refers to the quantity of goods or services that producers are willing and able to provide to the market at a given price and within a specific period.
4. Define the term raw material.
Ans: Raw materials refer to unfinished substances or unprocessed natural resources used to manufacture finished goods. These materials undergo different processing and conversion into intermediary substances, further used to make final products for sale. Examples include cotton, crude oil, coal, raw biomass, rubber blanks, mineral ores, etc. These unprocessed or less processed materials are essential parts of primary production at times known as primary commodities.
5. Explain the importance of inventory control in the manufacturing industry.
Ans: Inventory control is critically important in the manufacturing industry for several reasons:
(i) Optimising Production Efficiency: Inventory Management Software leverages historical data and analytics to predict future demand patterns. This enables businesses to align their production schedules with actual market needs, preventing excess inventory or stock shortages.
(ii) Cost Management: Manufacturers depend on manufacturing cost management to maximise their profitability. Manufacturing costs consist of direct materials costs, direct labour costs and manufacturing overhead. Manufacturing cost management tracks costs across these three categories and seeks ways to incrementally drive down costs.
(iii) Meeting Customer Demand: Set up the minimum amount of product you need to have at all times to meet customer demand. That way, when your inventory stock dips below it, you’ll know it’s time to order. You should also set maximum levels to ensure you never exceed the demand and save some space in your warehouse.
(iv) Reducing Wastage and Losses:
(a) Set a waste management goal.
(b) Minimise overstocking and overproduction.
(c) Stay on top of your inventory.
(v) Supply Chain Optimization: Supply chain optimization makes use of technology and resources like blockchain, artificial intelligence, and the Internet of things to maximise efficiency and performance in a supply network. An organisation’s supply chain is a critical business process that is crucial for a successful customer experience.
6. What is Work-In-Progress? Why is keeping track of the WIP important?
Ans: Work-in-process (WIP) is the term used for all the materials, parts (components), assemblies, and subassemblies that are being processed or are waiting to be processed within the system.
All companies are strongly focused on their cash flow statement and whole financial health.
There are three important reasons for accuracy:
(i) Taxation: No one wants to be reviewed by their nation’s tax service for inaccurate taxes. WIP is taxable as a current asset, and miscalculating or incorrect accounting can result in heavy fines. As well as overestimating can make manufacturers responsible for higher taxes when they aren’t necessary.
(ii) Cash Flow and Financing: Many enterprises use short-term financing and WIP Inventory Financing to focus on short-term cash flow issues. Requirements for this kind of financing always include accurate WIP accounting and valuation and an incorrect assessment may lead to discontinuation of the short-term financing agreement.
(iii) Production Impact: Incorrect WIP accounting can also lead to production inaccuracies. By overvaluing or undervaluing one part of WIP, upstream processes may be prompted to make up a sensed loss or idled to allow a perceived overage to deplete.
7. How does MRO play an important role in the manufacturing industry?
Ans: A factory has many machines in which different parts are manufactured. These machines need to be maintained and to maintain these machines, machine spare parts need to be bought and kept in inventory. Also, safety gloves, goggles, and other safer items need to be bought and kept. These are known as MRO spares, Maintenance Repairs and Operating supplies. (MRO). Companies also must keep inventory of spare parts of their products which service centres will use at the time of repair of the product.
For. e.g., a pressure cooker has two major spare parts: the rubber gasket and the safety valve. These are used at the time of servicing pressure cookers that have come for repair to a service canter.
MRO Inventory Examples are:
(i) MRO inventory includes a very wide range of equipment and supplies. Examples include.
(ii) Maintenance and repair supplies for production machinery: Machine oil and other lubricants, light bulbs, valves, bearings, cutting fluid and spare parts, such as motors and gears.
(iii) Safety equipment: Masks, ear plugs, hard hats, respirators and face shields.
(iv) Janitorial supplies: Disinfecting and Cleaning sprays, liquids and powders, mops, buckets, brooms, rags and dust cloths and disposable gloves.
(v) Office supplies: Personal computers, printers and toner, furniture, paper, pens and pencils.
(vi) Laboratory supplies for testing or research: Beakers, syringes, test tubes and scales.
