Materials Management - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
EOQ model is based on the assumption that unit price is fixed.
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Obsolescence cost is :-
Correct Answer
Due stock on hand , Part No. / Name
Your Answer
Due stock on hand , Part No. / Name

Multiple Choice Multiple Answer
Question
Set-up cost comprises of :-
Correct Answer
Work-order cost , Idle time cost
Your Answer
Work-order cost , Idle time cost

Multiple Choice Single Answer
Question
Quantity discounts reduces :-
Correct Answer
Procurement cost
Your Answer
Material cost

Multiple Choice Single Answer
Question
The document which is prepared by the engineering department is :-
Correct Answer
Bill of material
Your Answer
Bill of material

Multiple Choice Single Answer
Question
Which of the following is not the external factor influencing materials planning?
Correct Answer
Corporate objective
Your Answer
Corporate objective

Select The Blank
Question
Down time means ________.
Correct Answer
Time required by equipment to become OK
Your Answer
Time required by equipment to become OK

Multiple Choice Single Answer
Question
Security deposit means :-
Correct Answer
Amount as reserve-part kept by scrap contractor for final adjustment
Your Answer
Amount paid by contractor to company

Multiple Choice Single Answer
Question
Identifying technical, financial, managerial and quality assurance capability of the vendors and thereby generate data to serve basis for preliminary source selection is :-
Correct Answer
Source investigation stage
Your Answer
Source investigation stage

Select The Blank
Question
________specification are usually flexible and can be altered during consultation with different manufacturers of the equipment.
Correct Answer
Equipment
Your Answer
Technical

Multiple Choice Single Answer
Question
Issues to top up supply to pre-fixed levels of items are :-
Correct Answer
Imprest issues
Your Answer
Imprest issues

Multiple Choice Multiple Answer
Question
Requests for price increase are received on account of the following reasons :-
Correct Answer
Increase in cost of raw materials and boughtout parts , Changes in tax structure , Added work content
Your Answer
Increase in cost of raw materials and boughtout parts , Changes in tax structure , Added work content

Select The Blank
Question
Stock held by company represents ________.
Correct Answer
Money
Your Answer
Money

Select The Blank
Question
Method suitable for items which are either of purely seasonal is ________.
Correct Answer
Seasonal buying
Your Answer
Seasonal buying

Multiple Choice Single Answer
Question
The buying which is received in staggered lots, each lot at times may equal EOQ is :-
Correct Answer
Contract buying
Your Answer
Schedule buying

Multiple Choice Multiple Answer
Question
Special advance license for deemed export is granted in following cases :-
Correct Answer
Supply of goods against advance license /Remission scheme , Supply of goods to export oriented units , Supply of capital goods to holders of licenses under EPCG Scheme
Your Answer
Supply of goods against advance license /Remission scheme , Supply of goods to export oriented units , Supply of capital goods to holders of licenses under EPCG Scheme

True/False
Question
Supplier's request for price increase should be analysed patiently by the buyer. A curt 'no' or 'negative' reply spoils relationships.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Actions involved in sample validation are :-
Correct Answer
Follow up with the supplier until sample submission , Sample inspection , Feedback on defects and defect prevention
Your Answer
Sample inspection , Feedback on defects and defect prevention

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 for explosive & inflammable items , Material need to be held for costly items

Select The Blank
Question
________ is suitable for procurement of prototypes, fixtures, development items.
Correct Answer
Cost plus percentage of cost.
Your Answer
Fixed price agreements

Select The Blank
Question
In instantaneous replenishment system, production rate is ________ .
Correct Answer
Infinite
Your Answer
Constant

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

Multiple Choice Single Answer
Question
Operating systems process data for :-
Correct Answer
Routine operations of the depts.
Your Answer
Routine operations of the depts.

Select The Blank
Question
In MRP-1, manufacturing cycle of finished product is ________.
Correct Answer
Long
Your Answer
Short

Match The Following
Question
Correct Answer
Your Answer
JIT
Highly vulnerable to supply failures
Purchasing time
TPM
Removal of uncertainty
Highly vulnerable to supply failures
Quality at source
Elimination of incoming inspection
Elimination of incoming inspection
Lower unit cost
JIT
Quantity of production

True/False
Question
Materials department is service department.
Correct Answer
True
Your Answer
False

Select The Blank
Question
Malpractices are ________.
Correct Answer
Manipulations by stores staff
Your Answer
Manipulations by stores staff

True/False
Question
Value analysis is necessary when company's profits soars.
Correct Answer
False
Your Answer
False

Match The Following
Question
Correct Answer
Your Answer
Fast moving items
Very near to the issue counter
Very near to the issue counter
Antibiotics
In a air conditioned store
In a air conditioned store
Costly items like fuel injector
In locked cupboard & away from entrance of store.
In locked cupboard & away from entrance of store.
Inflammable & hazardous items
In a separate store
In a separate store

Multiple Choice Multiple Answer
Question
Discolourisation of soaps is due to :-
Correct Answer
Exposure to light , Moisture
Your Answer
Exposure to light , Moisture

Multiple Choice Multiple Answer
Question
Following are benefits of scientific stoke management :-
Correct Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material
Your Answer
Reduction in downtime by efficient issues , Very less time required to identify & issue material

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 , Import by 100% export oriented units

True/False
Question
Post parcel consignments are cleared through customs & clearance is done through foreign post office.
Correct Answer
True
Your Answer
False

True/False
Question
Number of free days allowed for air consignments is 15 days from the flight date.
Correct Answer
False
Your Answer
False

True/False
Question
The trade discount is not allowed as a percentage of published price.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Receiving inspector should have to :-
Correct Answer
Segregate defectives , Maintain vendor wise quality records
Your Answer
Segregate defectives , Maintain vendor wise quality records

Multiple Choice Single Answer
Question
Supplier may be asked to provide assistance for the first few days of working so that production losses can be avoided is known as :-
Correct Answer
Spare part and supply contracts
Your Answer
Seller's technical assistance during start up.

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

True/False
Question
Make or buy decision are of common concern to both materials and production department.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Inflammable storage areas should be :-
Correct Answer
Well insulated
Your Answer
Well insulated

Multiple Choice Multiple Answer
Question
The sub system of numerical system involves following :-
Correct Answer
Sequential code , Decimal code , Block code system
Your Answer
Sequential code , Decimal code , Block code system

Multiple Choice Single Answer
Question
Stock-out is due to :-
Correct Answer
Delay in deliveries
Your Answer
Delay in deliveries

Select The Blank
Question
________is reimbursement of actual costs plus fixed fee.
Correct Answer
Cost plus fixed fee
Your Answer
Cost plus fixed fee

Select The Blank
Question
________ is essence of purchase order.
Correct Answer
Delivery
Your Answer
Delivery

Multiple Choice Multiple Answer
Question
Performance of product requires :-
Correct Answer
Functionality , Reliability
Your Answer
Functionality , Reliability

True/False
Question
Ex-works means sale is made on rail/truck at the station of dispatch.
Correct Answer
False
Your Answer
False

True/False
Question
The trade discount is not allowed as a percentage of published price.
Correct Answer
False
Your Answer
False