CPIM Practice Exam

What occurs during the point of sale (POS)?

1. Bulk ordering of products

2. A relief of inventory at the time and place of sale

3. Annual financial reporting of inventory

4. Classification of products for inventory control

The correct answer is: A relief of inventory at the time and place of sale

During the point of sale (POS), a relief of inventory occurs at the exact moment and place a transaction is completed. This is crucial for inventory management, as it reflects the real-time status of stock levels. When a sale is made, the system automatically reduces the inventory count for the product sold, thereby ensuring that the available stock accurately represents what is left after the transaction. This process contributes to effective inventory control and management, allowing businesses to maintain optimal stock levels, avoid stockouts, and reduce excess inventory, which can tie up capital. Furthermore, the data gathered during POS can also help in forecasting demand and making informed purchasing decisions. The other options touch on broader inventory and finance topics but do not specifically relate to the immediate actions taken during a sale transaction.