Materials Management SCDL Assignment - 15

This solved paper of Materials Management has been contributed by Chinmay Khara

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Note from contributor: I am sending Materials Management assignment of SCDL 2010 batch that i have attempted recently. Some of the selected answers may be wrong, I have not get 100%. It is advised to check for correct answers.

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2.	Advantages of fixed price agreements are :-
a) b) c) d)	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 They are difficult to administer.

3.	Sales returns means :-
a) b) c) d)	Return of goods to Seller Receipt of goods from Customer Return of goods from Buyer Rejection of goods
4.	Master production schedule is not a forecast of demand but is plan for production.
	True False
5.	What is the meaning of stores layout?
a) b) c) d)	Laying of all items Physical arrangement of space for storage material movement, office etc which should provide for most efficient receipt storage & issue of material Arrangement of material in stores for preservation Stores arrangement by all means
7.	For large organizations where product is made up of assemblies of manufactured components raw material store is subdivided into :-
a) b) c) d)	Foundry store Tool crib Goods inward store Maintenance store
9.	Vendors are not responsible for statutory approvals from government authorities.
	True False
	1. Antibiotics          1.  In a air conditioned store  2. Costly items like fuel injector          2.  In a separate store  3. Inflammable & hazardous items          3.  In locked cupboard & away from entrance of store.  4. Fast moving items          4.  In outside yard                      5.  Very near to the issue counter                      6.  Option is not there

Stock-out is nothing but Employee's incompetency Nil stock Stock get depleted before receipt Organisational failure .

1. TPM          1.  Quantity of production  2. Quality at source          2.  Highly vulnerable to supply failures  3. Lower unit cost          3.  JIT  4. JIT          4.  Purchasing time                      5.  Elimination of incoming inspection                      6.  Removal of uncertainty

18.	Policies lay down administrative principles utilized in framing procedures and rules is :-
a) b) c) d)	Source policies Internal policies Supplier's relationship policies General policies

Good Corporate Departmental Business Personal relations are necessary for effective materials planning as every department is involved in materials planning because each department requires one item or other another.

21.	Deterioration & Obsolescence cost are similar.
	True False
22.	Black listing may be for a limited period or for an indefinite period.
	True False
25.	In fixed-order interval system, order interval is fixed.
	True False
	Inspection methods analyze Degree of inspection Competency of staff Quality of material Status of QA dept. .
	27. Functions of Traffic division :- a) b) c) d) Tracing missing consignments Selecting the right kind of shipping service Returning defective materials back to supplier Scrutinizing freight bills for payment. 28. The cost incurred in movement of materials from suppliers works to buyer's works is a) b) c) d) Freight cost Insurance cost Inventory carrying cost Packing cost 31. Post parcel consignments are cleared through customs & clearance is done through foreign post office. True False 33. Value analysis job plan contains :- a) b) c) d) 9 steps 6 steps 5 steps 8 steps 34. 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 a) b) c) d) Purchasing Store keeping Receiving Dispatching 36. In traditional purchasing, quality is confirmed At buyer's end On receipt Self-certification At supplier's end . 40. Primary duties to be performed by purchase department are :- a) b) c) d) Receipts, sorting of purchase indents and determination of method of buying Performance evaluation and feedback Search for suppliers Make or buy decisions 41. Noting clerk examines bill of entry papers & if found in order signs the bill of entry. True False 42. Stores is the "Safe Custody" for keeping materials True False 44. Costs involved in materials management are a) b) c) d) Basic cost of materials Government tax and levies Ordering cost Overhead Indian railways carry almost 0.6 1 0.8 0.75 goods & passenger traffic. 46. Special stores are created where :- a) b) c) d) 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 Material need to be held for explosive & inflammable items
48.	What are the areas of control to improve profit
a) b) c) d)	Increase units sold Increase production Reducing capital Decrease unit price
49.	OEM discount is given by the supplier with a view to widen customer's base.
	True False
0.	Issue of stock is :-
a) b) c) d)	Process of production Process of reacting by stores Important function of stores Principle of stores management

Marks : 2

51.	A bonnet of motor-car is an Protection to engine Esteem value Usage value Accessory .
53.	Value analysis is the cost reduction technique.
	True False