Managing the Inventory: Advice for Business Managers Reading Answers
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Content Writer at Study Abroad Exams | Updated On - Feb 2, 2023
Managing the Inventory: Advice for Business Managers Reading Answers is an IELTS GT reading topic. Managing the Inventory: Advice for Business Managers Reading Answers is taken from the book Collins Reading for IELTS. Managing the Inventory: Advice for Business Managers Reading Answers comprises 6 questions. Candidates need to answer one-word questions. The candidates should thoroughly read the IELTS reading passage to recognize the synonyms and identify the keywords and answer the questions below. IELTS reading practice papers can be taken into consideration by the candidates in order to score a good score in the reading section.
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Section 1
Read the passage to answer the following questions
Managing the Inventory: Advice for Business Managers Reading Answers
The importance of the inventory
Inventory or stock refers to the goods and materials that a business holds for the ultimate purpose of resale. Inventory is among the more significant sources of revenue for a company. After all, inventory equals profit, so keeping an accurate account of product in stock and inventory to be ordered can have a dramatic financial impact on your business. In fact, bad inventory can affect more than just the bottom line, it can have a damaging effect on your organization in the following ways:
Poor Customer Service:
Lack of inventory control can result in a delay when shipping products to customers. Moreover, it can create a scenario in which you don’t have the proper parts available for a product because you failed to check your inventory. This results in overall poor service to the clients you serve, and customer dissatisfaction.
Loss of Cost Effectiveness:
Bad inventory can be quite costly to your organization. If you have too much inventory, it will be prone to damage or destruction over time due to reasons beyond your control. If you have no system for accurately monitoring inventory, you also may end up with shrinkage (inventory lost to theft). Finally, if you are spending more on additional inventory that you don’t need – because you don’t know what you have – you are wasting money.
Poor Planning:
Businesses track inventory so that they are able to fulfill customer orders at all times. However, it is also good business practice to plan ahead, and when you start with a bad cache of inventory, then you can’t properly plan. Moreover, if you have an unexpectedly large order – which is great for business, financially speaking – your bad inventory may again cost you money if you can’t fulfill it.
Solutions:
To mitigate the negative effect of bad inventory on your business, you can integrate a few solutions into your workflow. For example, you can invest in an automated inventory management system, software which can track your inventory and show you where you’ve gone wrong. If you prefer one-on-one advice and fast answers, you may engage an inventory consultant to periodically review your stock, show you where you can make improvements in storage, and advise you on the process by which inventory moves in and out of your business.
Section 2
Solution and Explanation
Questions 22–27
Complete the sentences below.
Choose ONE WORD ONLY from the text for each answer.
Write your answers in boxes 22–27 on your answer sheet.
- A company’s inventory represents profit, as the stored items are intended for…....……..
Answer: resale
Supporting Sentence: Inventory or stock refers to the goods and materials that a business holds for the ultimate purpose of resale.
Keywords: Inventory, stock, business
Keyword Location: The importance of the inventory, line 1
Explanation: Paragraph The importance of the inventory mentions Inventory, often known as stock. This refers to the items and supplies that a company keeps for the purpose of reselling. Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of reselling. Inventory is one of a company's most important sources of revenue. And besides, stock equals money, so maintaining an accurate record of what is in stock and what has to be ordered may have a significant financial influence on your company. Hence resale is the correct answer.
- One of the consequences of failing to manage inventory is a …....…….. in making deliveries.
Answer: delay
Supporting Sentence: Lack of inventory control can result in a delay when shipping products to customers.
Keywords: Inventory control, delay
Keyword Location: Poor Customer Service, line 1
Explanation: In Poor Customer Service, the first line mentions that inventory control issues might cause delays in distributing items to customers. Furthermore, it may result in a situation in which you do not have the necessary parts for a product since you forgot to verify your inventory. Hence delay is the correct answer.
- Large quantities of stock may eventually suffer …....…….. and even ruin.
Answer: damage
Supporting Sentence: If you have too much inventory, it will be prone to damage or destruction over time due to reasons beyond your control.
Keywords: damage, over time
Keyword Location: Loss of Cost Effectiveness
Explanation: Bad inventory may be quite costly to your company. If you have an excessive amount of inventory, it will be vulnerable to damage or destruction over time due to factors beyond your control. If you do not have a system in place to correctly manage inventory, you may experience shrinkage. Hence damage is the correct answer.
- Unchecked inventory can become depleted due to …....……..
Answer: theft
Supporting Sentence: If you have no system for accurately monitoring inventory, you also may end up with shrinkage (inventory lost to theft).
Keywords: shrinkage, inventory lost
Keyword Location: Loss of Cost Effectiveness
Explanation: As Loss of Cost Effectiveness mentions that you do not have a system in place to effectively manage inventory. Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of reselling. Inventory is one of a company's most important sources of revenue. And besides, stock equals money, so maintaining an accurate record of what is in stock and what has to be ordered may have a significant financial influence on your company. You may wind up with shrinkage, which is inventory lost due to theft. Hence theft is the correct answer.
- The benefits of an unpredicted …....…….. may be lost if there is insufficient stock.
Answer: order
Supporting Sentence: Businesses track inventory so that they are able to fulfill customer orders at all times.
Keywords: Businesses track inventory
Keyword Location: Poor Planning
Explanation: Businesses maintain inventories to ensure that they can always fulfil consumer orders. However, it is also smart business practise to plan ahead, and if you start with a poor inventory cache, you will be unable to adequately prepare. Furthermore, if you receive an unexpectedly large order, which is fantastic for company financially, your faulty inventory may cost you money again if you are unable to fulfil it. Hence order is the correct answer.
- Ways of avoiding bad inventory include purchasing special software and hiring a …....……..
Answer: consultant
Supporting Sentence: you may engage an inventory consultant to periodically review your stock
Keywords: inventory consultant
Keyword Location: Solutions
Explanation: You may include a few strategies into your process to lessen the negative impact of defective inventory on your organisation. You might, for example, invest in an automatic inventory management system, which tracks your inventory and shows you where you've gone wrong. If you want one-on-one assistance and quick responses, you may hire an inventory consultant to assess your stock on a regular basis, show you where you can optimise storage, or advise you on the method by which inventory goes in and out of your firm. Hence consultant is the correct answer.
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