Quiz Space

Database Management Systems · Quiz 2 · 12 Apr 2026 · January 2026 term · Set 2

Question 6: A fast-fashion e-commerce company receives fresh inventor…

Question 6

+1 markOne correct option

A fast-fashion e-commerce company receives fresh inventory every morning based on the previous day's sales data, keeping almost zero buffer stock. During a surprise viral trend, they run out of a popular dress by noon. Which inventory management approach are they using, and what risk does this scenario illustrate?

  1. A

    FIFO method: risk of selling old stock first

  2. B

    EOQ model: risk of ordering too much at once

  3. C

    Just-In-Time (JIT): risk of stock-out when demand spikes unexpectedly

  4. D

    Par Stock method: risk of overstocking

Show answer

Correct answer

  • C

    Just-In-Time (JIT): risk of stock-out when demand spikes unexpectedly

Question 6 of 18 in the IIT Madras BS Database Management Systems (DBMS) Quiz 2 paper sat on 12 Apr 2026, in the January 2026 term (Business Data Management 06 Apr 26). It carries 1 mark.

This question was also asked in

More questions from this paper

  1. Q1In FY 2022 vs FY 2021, e-commerce order volume grew by 69.4% while Gross Merchandise Value (GMV) grew by 73.6%, and ave…
  2. Q2Pepperfry sells exclusively furniture and home decor, while Amazon India sells everything from groceries to electronics…
  3. Q3A smartphone brand is launching a rugged, waterproof phone priced at INR 15,000 with a high-quality camera. Using the u…
  4. Q4Nykaa (beauty-focused) and Flipkart (multi-category platform) both sell cosmetics online. Which of the following best e…
  5. Q5The opening stock data shows SKU F01 has stock of 391 (H), 77 (C), and 50 (M), totalling 518 units. SKU F08 has 23, 6, …
  6. Q7The FY 2022 vs FY 2021 segment-wise order volume growth chart shows Beauty & Personal Care leading at 143.3%, while Ele…
  7. Q8ACE Gears produces Gear Assembly 4, which requires Gear 4-A (made from Blank-011) and Gear 4-B (made from Blank-022). I…
  8. Q9The October 2019 Hobbing workstation schedule shows a capacity of 400 units on Monday and 800 units on Tuesday through …
  9. Q10The scatter plot of Gear Assembly sales quantity vs. two-year revenue shows GA6 (BS4/6) as a high-volume product (~225,…
  10. Q11Using the ABC classification for inventory, Category A items are high-value and tightly controlled with JIT ordering. I…
  11. Q12A company uses BCG Matrix and invests heavily in high-growth, low-share products without improving their market share. …
  12. Q13In PESTEL analysis, rising interest rates and exchange rate volatility would primarily impact which aspect of a firm’s …
  13. Q14Why does ABC analysis emphasize value rather than volume in inventory control?
  14. Q15Tesla integrates PESTEL, ABC, BCG, and TOWS frameworks. If Tesla uses strict control on battery cells while automating …
  15. Q16According to the BCG Matrix, which statements are true?
  16. Q17Which of the following are valid implications of ABC classification?
  17. Q18(FIll in the blank) In ABC analysis, Class A items typically account for about 70-80% of but only a small proportion of…