Materials Management - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
In fixed-order interval system, order interval is fixed.
Correct Answer
True
Your Answer
True

True/False
Question
Pre-fixed qty. issue system is suitable for A-class items.
Correct Answer
False
Your Answer
True

Select The Blank
Question
________ find their use in identification of raw materials, lubricants, pipelines etc.
Correct Answer
Colour codes
Your Answer
Colour codes

Select The Blank
Question
Two-bin system supersedes ________.
Correct Answer
Perpetual inventory
Your Answer
Variable inventory

Multiple Choice Multiple Answer
Question
In F.O.R. contract seller is responsible for :-
Correct Answer
Arranging for movement of goods to the transporter's godown , Safe loading on into the vehicle , Keeping the material in deliverable state
Your Answer
Paying for the local transport , Arranging for movement of goods to the transporter's godown , Safe loading on into the vehicle

Multiple Choice Single Answer
Question
Organization decided to import when :-
Correct Answer
Item is not available in the country
Your Answer
Item is not available in the country

Multiple Choice Single Answer
Question
The purchasing made under contract , usually formal, of needed materials, the delivery of which is frequently spread over a period of time is known as :-
Correct Answer
Contract buying
Your Answer
Contract buying

Multiple Choice Multiple Answer
Question
Internal lead time can be reduced :-
Correct Answer
By selectively delegating the powers , By developing local vendor
Your Answer
By selectively delegating the powers , By developing local vendor , By better paper-work

True/False
Question
Telephonic quotations are useful when there is limited competition.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The point of transfer of ownership rights from seller to buyer is :-
Correct Answer
Place of delivery
Your Answer
Spare part and supply contracts

Multiple Choice Single Answer
Question
Prices of certain commodity may be fixed by the government and thereby putting a restriction on both buyer and seller is :-
Correct Answer
Government restrictions
Your Answer
Government restrictions

Match The Following
Question
Correct Answer
Your Answer
Review period
Order interval
Two-bin system
FOQ system
B-class items
B-class items
Reduction in record-keeping
Two-bin system
Order interval
Fixed-Order Interval system
Fixed order interval
Fixed order interval

Select The Blank
Question
Average inventory in any replenishment system is ________ to sum of minimum & maximum stock.
Correct Answer
Equal
Your Answer
Steady

Multiple Choice Multiple Answer
Question
Following are distinguishing features of Air consignment :-
Correct Answer
No system of prior entry , 3 free days are allowed from flight date
Your Answer
No system of prior entry , 3 free days are allowed from flight date , All rules are same for Air & Sea consignment

Multiple Choice Multiple Answer
Question
Typical examples of direct materials are :-
Correct Answer
Cloth in the manufacture of garment , Wood in the manufacture of furniture , Fruits in a canning industry
Your Answer
Cloth in the manufacture of garment , Wood in the manufacture of furniture , Fruits in a canning industry

True/False
Question
Cost of capacity which may be rendered idle if the item currently being manufactured in purchased needs to be added to the cost to buy.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Following special schemes are announced by Indian Government under which import can be permitted at zero duty or at less duty :-
Correct Answer
Export promotion capital goods scheme , Diamond &Jewellary promotion scheme , Import by 100% export oriented units
Your Answer
Export promotion capital goods scheme , Diamond &Jewellary promotion scheme

Multiple Choice Single Answer
Question
Government departments and public sector undertakings in India follow this method of buying :-
Correct Answer
Tender buying
Your Answer
Blanket orders

Match The Following
Question
Correct Answer
Your Answer
Right place
Delivery as per contract
Delivery as per contract
Buyers right
Examine the goods
Examine the contract
Unpaid sellers right
Of lien
Attack on buyers property
Delivery
Transfer of ownership rights from seller to the buyer
Of lien

Select The Blank
Question
Acceptance sampling plans have been evolved ________.
Correct Answer
Based on probability theory
Your Answer
Based on probability theory

True/False
Question
Purchase cost is the price paid the supplier
Correct Answer
True
Your Answer
True

True/False
Question
Esteem value is paid by the supplier.
Correct Answer
False
Your Answer
True

True/False
Question
Vendors are not responsible for statutory approvals from government authorities.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Advantages of fixed price agreements are :-
Correct Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations
Your Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations

Multiple Choice Single Answer
Question
The threat on the part of supplier to hold supplies until favourable price decisions is :-
Correct Answer
Ability to hold on price
Your Answer
Ability to hold on price

Select The Blank
Question
Finished parts are called as ________.
Correct Answer
Bought-out parts
Your Answer
Auxillary parts

Select The Blank
Question
Tendering in the absence of negotiations is also called ________.
Correct Answer
Firm bidding
Your Answer
Schedule buying

Multiple Choice Multiple Answer
Question
Special stores are created where :-
Correct Answer
Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for explosive & inflammable items
Your Answer
Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for costly items

Multiple Choice Single Answer
Question
What is the identification & location of stock in store?
Correct Answer
Formulating & updating a system of stores and coding to items which should ensure efficient identification & location of goods.
Your Answer
Formulating & updating a system of stores and coding to items which should ensure efficient identification & location of goods.

Multiple Choice Single Answer
Question
The inventories which refer to the maintenance, repair and operation supplies which are consumed during process of manufacturing but do not become part of the product is :-
Correct Answer
MRO inventories
Your Answer
In process inventories

True/False
Question
Noting clerk examines bill of entry papers & if found in order signs the bill of entry.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The organization set up by FAO & WHO to evolve food standards :-
Correct Answer
Codex Alimentarious commission
Your Answer
Codex Alimentarious commission

Multiple Choice Multiple Answer
Question
Salient features of the working of the price panel are as under :-
Correct Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.
Your Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.

Multiple Choice Single Answer
Question
The method used for making purchases of proprietary items is :-
Correct Answer
Single tender
Your Answer
Open tender

Select The Blank
Question
All incoming materials are insured against ________
Correct Answer
Damage / loss
Your Answer
Value of material

Multiple Choice Multiple Answer
Question
Disadvantages of forward buying are :-
Correct Answer
Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial loss to the firm. , Large scale obsolescence may result if design changes occur.
Your Answer
Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial loss to the firm. , Inventory holding charges are lower.

True/False
Question
Lead time information is required for determination of safety stock.
Correct Answer
False
Your Answer
True

True/False
Question
Fire extinguishers should be very near to staff members.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
In Ex-works contract buyer is responsible for :-
Correct Answer
Arranging for transport including loading on to the vehicle at supplier's works , Paying for freight , Arranging for transit insurance
Your Answer
Keeping the material in deliverable state , Arranging for transport including loading on to the vehicle at supplier's works

Multiple Choice Single Answer
Question
Sales returns means :-
Correct Answer
Receipt of goods from Customer
Your Answer
Rejection of goods

Select The Blank
Question
Cost of special tooling is called as ________.
Correct Answer
Cost to buy
Your Answer
Cost to buy

Select The Blank
Question
________ is followed in public sector organizations to identify the lowest potential bidder.
Correct Answer
Tender system
Your Answer
Tender system

Select The Blank
Question
Stock-out is nothing but ________.
Correct Answer
Stock get depleted before receipt
Your Answer
Nil stock

Multiple Choice Single Answer
Question
The orders, to the extent possible should be avoided is called as :-
Correct Answer
Rush
Your Answer
Rush

Multiple Choice Multiple Answer
Question
Deterioration of electrodes causes :-
Correct Answer
Increase in arc instability , Excessive spatter
Your Answer
Increase in arc instability , Excessive spatter , High smoke while using

Multiple Choice Multiple Answer
Question
Following agreement have been expressly declared void as per the Indian Contract Act 1872 :-
Correct Answer
Agreement in restraint of marriage , Agreement by way of wages , Agreements to do impossible acts
Your Answer
Agreement in restraint of marriage , Agreements in restraints of business , Agreement by way of wages

Select The Blank
Question
Systematic ________of stores is the key to its efficient operation.
Correct Answer
Layout
Your Answer
Layout