Materials Management - 13

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


True/False
Question Small parcels, Samples, gifts which are received from other
countries provisions of import policy & customs not applied on them.
Correct Answer False
Your Answer False


Match The Following
Question Correct Answer Your Answer

Delivery time As specified in contract Warranties

Essential stipulations Conditions As per agreement

Collateral stipulations Warranties As specified in contract

Caveat emptor Fundamental principle of sale of goods Sale of goods act
option

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


True/False
Question Black listing may be for a limited period or for an
indefinite period.
Correct Answer True
Your Answer False


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


Multiple Choice Multiple Answer
Question Stores functions include :-
Correct Answer Receiving and issuing of materials , Keeping the
record , Taking precautions to avoid pilferage, theft
Your Answer Receiving and issuing of materials , Keeping the record ,
Taking precautions to avoid pilferage, theft


Multiple Choice Multiple Answer
Question Analysis of certification correctness of material is
required for :-
Correct Answer Bar stock , Castings
Your Answer High risk materials , Liquids


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 Set-up cost for manufactured item in own plant is ________.
Correct Answer Very high
Your Answer Very less


Select The Blank
Question The ________ is raised by the receiving stores in receipt of
materials and after physical verification of the quantity and quality.
Correct Answer Goods Receipt Report
Your Answer Goods Receipt Report


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


True/False
Question JIT purchasing is indirectly the activity of pushing
inventory on the suppliers.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Annual total cost is :-
Correct Answer Annual Material Cost + Annual Procurement Cost +
Annual ICC
Your Answer Annual Material Cost + Annual Procurement Cost + Annual ICC


True/False
Question No restrictions are on rail transport.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question Advantages of forward buying are :-
Correct Answer Greater margin of profit on finished goods , Saving
in procurement expenses as purchases are usually consolidated. , Security
against shortages
Your Answer Greater margin of profit on finished goods , Saving in
procurement expenses as purchases are usually consolidated. , Security
against shortages


Multiple Choice Single Answer
Question The purchase of variety of items from single source is
called as :-
Correct Answer Blanket orders
Your Answer Blanket orders


True/False
Question Inventory control technique is suited for low value indirect
materials which are economical to procure them in certain pre fixed
quantities.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Contracts of A & B class items should have :-
Correct Answer Value engineering
Your Answer Value analysis


True/False
Question Reorder quantity in fixed order interval system equal
economic order quantity.
Correct Answer False
Your Answer True


Select The Blank
Question Indian railways carry almost ________ goods & passenger
traffic.
Correct Answer 0.75
Your Answer 0.75


Select The Blank
Question The purchasing of Weigh bridge is________
Correct Answer Capital purchasing
Your Answer Import purchasing


Multiple Choice Multiple Answer
Question Techniques of Simplification :-
Correct Answer Preferred numbers , Frequency analysis ,
Rationalized codification
Your Answer Classification , Frequency analysis , Rationalized
codification


Multiple Choice Multiple Answer
Question Correct issues must have :-
Correct Answer Written requisitions , Authorized requisitions
Your Answer Written requisitions , Authorized requisitions


Multiple Choice Multiple Answer
Question Rejection percentage to be allowed to the vendor depends on
the :-
Correct Answer Configuration of component , Number of operations
involved , Tolerances and surface finishes
Your Answer Number of operations involved , Tolerances and surface
finishes , Process


Select The Blank
Question One of the major pipe-line in India is ________.
Correct Answer Ankaleshwar - Baroda
Your Answer Barauni - Bajwa


Select The Blank
Question GRR are sent from ________.
Correct Answer Stores Dept.
Your Answer Stores Dept.


Multiple Choice Multiple Answer
Question Continuous Stock-taking is effective due to :-
Correct Answer Planned/scheduled activity , Discrepancies are
noticed & corrected in short spell
Your Answer Planned/scheduled activity , Discrepancies are noticed &
corrected in short spell , Eliminates material losses


Multiple Choice Single Answer
Question Limited competition is associated with higher price while
wider competition enables buying at competitive rates is known as :-
Correct Answer Extent of competition
Your Answer Demand and supply condition


Select The Blank
Question ________ is an addition of unnecessary cost to product
Correct Answer Poor design
Your Answer Poor design


Multiple Choice Multiple Answer
Question The alpha numerical system operates as under :-
Correct Answer Each item is identified and is given a proper
description. , Identical items are classified into groups and each group is
provided a suitable heading. , Codes are assigned to the next group, which
are usually the alphabets.
Your Answer Each item is identified and is given a proper description. ,
Identical items are classified into groups and each group is provided a
suitable heading. , Codes are assigned to the next group, which are usually
the alphabets.


Multiple Choice Single Answer
Question How much saving in material cost can give benefit equivalent
to eight to nine % rise in sales volume?
Correct Answer 0.01
Your Answer 0.01


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 Single Answer
Question Which type of tendering is adopted when the requirements are
urgent?
Correct Answer Limited tender
Your Answer Limited tender


True/False
Question Continuous stock-taking tends to dislocate the working of
store.
Correct Answer False
Your Answer False


True/False
Question PO gives full and complete details of the materials to be
supplied thereby avoiding ambiguities.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question External lead time is :-
Correct Answer Supplier's lead time
Your Answer Supplier's lead time


Match The Following
Question Correct Answer Your Answer

Supplies Abrasive materials Chemicals

Perishable materials Vegetables Vegetables

Packing materials Carton Carton

Empties Metal containers Metal containers

Multiple Choice Multiple Answer
Question Primary duties to be performed by purchase department are :-
Correct Answer Receipts, sorting of purchase indents and
determination of method of buying , Performance evaluation and feedback ,
Search for suppliers
Your Answer Receipts, sorting of purchase indents and determination of
method of buying , Performance evaluation and feedback , Search for
suppliers


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 Arranging for movement of goods to the transporter's godown
, Safe loading on into the vehicle , Keeping the material in deliverable
state


Multiple Choice Single Answer
Question Primary function means :-
Correct Answer Basics required to make product worth
Your Answer Basics required to make product worth


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


Select The Blank
Question Review system-optional replenishment is a modification of
________.
Correct Answer Fixed-order interval system
Your Answer Fixed-order interval system


Multiple Choice Single Answer
Question Value analysis job plan contains :-
Correct Answer 9 steps
Your Answer 9 steps


Multiple Choice Multiple Answer
Question Functions of Traffic division :-
Correct Answer Tracing missing consignments , Selecting the right
kind of shipping service , Scrutinizing freight bills for payment.
Your Answer Selecting the right kind of shipping service , Scrutinizing
freight bills for payment.


Select The Blank
Question ________Inspects the goods & issues a surveyor report
certificate.
Correct Answer Surveyor
Your Answer Surveyor


Multiple Choice Multiple Answer
Question Objectives of material research are :-
Correct Answer To improve capability of purchase department to
visualize problems which may be encountered in future. , To make optimum
utilization of available resources , To provide the enterprise a competitive
edge.
Your Answer To improve capability of purchase department to visualize
problems which may be encountered in future. , To make optimum utilization
of available resources , To provide the enterprise a competitive edge.


True/False
Question Two bin system is better as compared to perpetual inventory
system.
Correct Answer False
Your Answer True