Materials Management - 7

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
Bulky items impervious to weather is kept at very safe place inside store.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Petroleum product imports are channealised through________.
Correct Answer
Indian oil corporation
Your Answer
Indian oil corporation

Multiple Choice Single Answer
Question
Procurement by more than one firm by pooling their requirements is :-
Correct Answer
Cooperative buying
Your Answer
Cooperative buying

Multiple Choice Single Answer
Question
For the inspection of special Cutting tools which department is responsible?
Correct Answer
Planning department & inspection department
Your Answer
Maintenance department

Match The Following
Question
Correct Answer
Your Answer
Vendor rating
Right source
Right source
Replenishment method
Right time
Right time
Competitive bidding
Right price
Right price
EOQ
Right quantity
Right quantity

Multiple Choice Single Answer
Question
The cost incurred in providing adequate insurance cover to the materials in transit and in storage is
Correct Answer
Insurance cost
Your Answer
Insurance cost

Multiple Choice Multiple Answer
Question
Import transactions are subject to following additional laws compared to procurement from sources within the country as :-
Correct Answer
Import trade control act ®ulation , Custom act , Central excise Rules 2002
Your Answer
Import trade control act ®ulation , Custom act , Trade policy act 2000

True/False
Question
Projects are usually subjected to uncertainty & often delay takes place in completion of projects which results in cost over runs.
Correct Answer
True
Your Answer
True

True/False
Question
Contract whose object is not lawful are not void.
Correct Answer
False
Your Answer
False

True/False
Question
Shortage chasing is intended to remind the supplier of the due date and obtain advance information of expected delays.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Optimal purchase quantity comprises :-
Correct Answer
Annual inventory carrying cost , Annual procurement cost
Your Answer
Annual inventory carrying cost , Annual procurement cost , Set-up cost

Multiple Choice Multiple Answer
Question
Steel almirahs are used for storage of :-
Correct Answer
Expensive items , Scarce items
Your Answer
Expensive items , Scarce items , High risk materials

Multiple Choice Multiple Answer
Question
Some of the benefits if materials are supplied by the buyer are :-
Correct Answer
The supplies of goods are guaranteed especially during the periods of shortages. , The frequent requests for the price revisions are avoided , The buyer is sure of the quality of materials.
Your Answer
The buyer is sure of the quality of materials. , The frequent requests for the price revisions are avoided , The unnecessary profit on materials are added by the suppliers.

Multiple Choice Multiple Answer
Question
The buyers are asked to adopt the following method for follow up :-
Correct Answer
Telephone , Letters , E-mail, telegram
Your Answer
Telephone , Letters , E-mail, telegram

True/False
Question
Stores is the "Safe Custody" for keeping materials
Correct Answer
True
Your Answer
True

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

Multiple Choice Multiple Answer
Question
A contract terminates under following condition :-
Correct Answer
Discharge by performance , Discharge by Release , Discharge by novation
Your Answer
Discharge by performance , Discharge by Release , Discharge by novation

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

True/False
Question
The performance of an equipment can not be verified on the spot if the equipment is not in operation.
Correct Answer
False
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Speculative buying
Bulk purchasing
Non perishable items
Capital purchasing
Plant and machinery
Plant and machinery
Group purchasing
Hardware materials
Bulk purchasing
Service contract
Typewriters
Hardware materials

True/False
Question
Metals should be stored at least 15-20 cm above the ground.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Costs involved in materials management are
Correct Answer
Basic cost of materials , Government tax and levies , Ordering cost
Your Answer
Basic cost of materials , Ordering cost , Overhead

Select The Blank
Question
________ of the department refers to the placement of the department in the structure of the company.
Correct Answer
Status
Your Answer
Location

True/False
Question
Value analysis is the cost reduction technique.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
For large engineering firms main store could be sub divided into :-
Correct Answer
Finished part store , Raw material store , Semi finished item store
Your Answer
Raw material store , Semi finished item store , Finished part store

Multiple Choice Single Answer
Question
In project procurement what work is covered in detailed engineering stage?
Correct Answer
Cross verification of technical specifications & finalisation of commercial terms
Your Answer
Cross verification of technical specifications & finalisation of commercial terms

Select The Blank
Question
Sub contracting decisions must be based on outcome of ________ analysis.
Correct Answer
Cost benefit
Your Answer
Cost benefit

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
Price expectations if not realised may result in major financial loss to the firm. , Large scale obsolescence may result if design changes occur.

Multiple Choice Single Answer
Question
Who act as a link between company's financial department and supplier's for timely payment?
Correct Answer
Purchase division
Your Answer
Purchase division

Multiple Choice Single Answer
Question
What is the meaning of stores layout?
Correct Answer
Physical arrangement of space for storage material movement, office etc which should provide for most efficient receipt storage & issue of material
Your Answer
Physical arrangement of space for storage material movement, office etc which should provide for most efficient receipt storage & issue of material

True/False
Question
If item is manufactured in small quantities, set-up cost is high.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________is suitable for procurement from non-profit making organization.
Correct Answer
Cost plus zero fee
Your Answer
Fixed price agreements with escalation.

Select The Blank
Question
________ reduce problems of material planning.
Correct Answer
Reduction in lead time
Your Answer
Reduction in lead time

Multiple Choice Single Answer
Question
JIT aims at :-
Correct Answer
Reduction in non-value added activities
Your Answer
Reduction in non-value added activities

Multiple Choice Multiple Answer
Question
Complaints concerning should be made in such a way that negative reactions are avoided such as :-
Correct Answer
Delivery failures , Rejection , Shortages
Your Answer
Delivery failures , Rejection , Shortages

Multiple Choice Single Answer
Question
Internal factor influencing materials planning:-
Correct Answer
Procurement lead times
Your Answer
Procurement lead times

Multiple Choice Single Answer
Question
The cost incurred in movement of materials from suppliers works to buyer's works is
Correct Answer
Freight cost
Your Answer
Freight cost

True/False
Question
Supplier's delivery ratings should be communicated on periodical basis.
Correct Answer
True
Your Answer
True

Select The Blank
Question
When the costs are balanced, total cost is ________.
Correct Answer
Minimum
Your Answer
Fixed

Multiple Choice Single Answer
Question
The process of procurement of raw material, wip, finished goods, jigs, fixtures and other tools and equipments which are required for the operation and maintenance of a manufacturing plant is known as
Correct Answer
Purchasing
Your Answer
Store keeping

Multiple Choice Single Answer
Question
Mechanical tests are performed to :-
Correct Answer
Ascertain the strength of materials
Your Answer
Ascertain the strength of materials

Multiple Choice Single Answer
Question
Set-up cost means :-
Correct Answer
Cost incurred to replenish the stock of item manufactured at home plant
Your Answer
Cost incurred to replenish the stock of item manufactured at home plant

Multiple Choice Single Answer
Question
The main responsibility of inventory control division is :-
Correct Answer
Fixing inventory levels
Your Answer
Fixing inventory levels

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 explosive & inflammable items

Select The Blank
Question
________ is a fundamental form of economical value.
Correct Answer
Esteem value
Your Answer
Cost value

Select The Blank
Question
Discrepancies arising out of theft are tends to ________.
Correct Answer
Profit & Loss a/c
Your Answer
Profit & Loss a/c

Multiple Choice Single Answer
Question
What is Earnest money?
Correct Answer
Fixed amount collected along with Tender
Your Answer
Fixed amount collected along with Tender