# Inventory Setup

Use these questions to prepare for the Kanoa Inventory certification exam.

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<summary>What's a cost center used for?</summary>

Classifying which budget a stock movement is charged to, for example Maintenance when parts are issued to a work order. See [Reference Data](../01-inventory-setup/1-reference-data.md).

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<summary>What's the difference between a critical spare and a consumable?</summary>

A critical spare is one whose absence stops production. A consumable is used up, such as inserts or filters. See [Build the Parts Catalog](../01-inventory-setup/2-parts-catalog.md).

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<summary>How do you retire a part without losing its history?</summary>

Clear Enabled instead of deleting it. See [Build the Parts Catalog](../01-inventory-setup/2-parts-catalog.md).

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<summary>How is a storeroom modelled in Kanoa?</summary>

As an inventory asset in the asset model, such as `Storage\Parts Room`. See [Storeroom and Stocking Policies](../01-inventory-setup/3-storeroom-and-policies.md).

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<summary>Why set the reorder point above safety stock?</summary>

The reorder point starts replenishment in time; safety stock is the buffer you use while the order arrives. Falling below it means an urgent shortage. See [Storeroom and Stocking Policies](../01-inventory-setup/3-storeroom-and-policies.md).

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