Sixth Semester Management MCQ’s Materials Management Designed & Developed by – S. K. Rawat 6.1 TOPIC 6: MATERIALS MANAGEMENT Sr. No. Statement Option (a) Option (b) Option (c) Option (d) Ans 1 _____________________________ is the process of planning, procuring, storing and providing the appropriate material of the right quality, right quality at the right place in the right time. Financial management Materials management Operation management Marketing management b 2 _____________________________ is a detailed list of movable items which are required for manufacturing products and maintaining the equipment and machines in good working order. Inventory Production Purchase None of these a 3 Inventory consists of _______________________________________________. raw material work in progress finished products all of these d 4 _____________________ inventory includes purchase of raw material, semi-finished components, standard components or/and subassemblies from suppliers. Raw material In-process Finished product Indirect a 5 _________________________ inventory includes the finished products lying in the warehouse and waiting for dispatch. Finished product Raw material In-process Indirect a 6 _________________________ inventory consists of semi-finished components. Finished product Raw material Indirect In-process b 7 In ABC analysis which inventory is classified into category ‘A’ items? Annual consumption cost is around 15-25% Annual consumption cost is around 70-80% Annual consumption cost is around 5-10% Annual consumption cost is around 50% b 8 In ABC analysis which inventory is classified into category ‘B’ items? Annual consumption cost is around 15-25% Annual consumption cost is around 70-80% Annual consumption cost is around 5-10% Annual consumption cost is around 50% a
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1 _____________________________ is the process of planning, procuring, storing and providing the appropriate material of the right quality, right quality at the right place in the right time.
Financial management
Materials management
Operation management
Marketing management
b
2
_____________________________ is a detailed list of movable items which are required for manufacturing products and maintaining the equipment and machines in good working order.
Inventory Production Purchase None of these a
3 Inventory consists of _______________________________________________. raw material work in progress finished products all of these d
4 _____________________ inventory includes purchase of raw material, semi-finished components, standard components or/and subassemblies from suppliers.
Raw material In-process Finished product Indirect a
5 _________________________ inventory includes the finished products lying in the warehouse and waiting for dispatch.
Finished product Raw material In-process Indirect a
6 _________________________ inventory consists of semi-finished components.
Finished product Raw material Indirect In-process b
7 In ABC analysis which inventory is classified into category ‘A’ items?
Annual consumption cost is around 15-25%
Annual consumption cost is around 70-80%
Annual consumption cost is around 5-10%
Annual consumption cost is around 50%
b
8 In ABC analysis which inventory is classified into category ‘B’ items?
The specification of the material to be purchased must be constant
The quality of the finished product largely depend upon the quality of material used
The quantity material and supplies purchased must be such that production schedule is not disrupted
Inventories throughout the supply chain are as high as possible
d
28
The main function of purchasing department is: 1. Keep record of reliable and also alternative source of supply 2. Maintain update pricelist of all material 3. Ensure uninterrupted supply of material 4. Preparation of purchasing budget
All Only 1 and 2 Only 2 and 3 Only 2 and 4 a
29 Whenever a department needs an item, it is officially brought to the notice of the purchasing department by filing a purchase requisition from. The next step is-
Exact quantity of material to be purchased and its specification is decided
Prepare a list of suppliers who deal with the business of the articles to be purchasing and are reliable
Pen the quotations at prescribed time on the prescribed date
Prepare a comparative statement of the, terms and conditions mentioned in the quotation and then analyze them
a
30
Put the following in chronological order while purchasing material 1. After receiving the purchase requisition forms, exact quality of material to be purchased and its specification are decided 2. Call for quotation at prescribed time 3. Then prepare a list of suppliers who deal with the business of the articles to be purchased and are reliable 4. Request for supply is made on prescribe quotation from to all the selected source of supply
Arrange the following in chronological order while purchasing material 1. Receive purchase requisition from department 2. Call for quotation 3. Inspect the material 4. Place purchase order
1,2,,4,3 3,4,2,1 2,1,4,3 4,2,1,3 a
32
Arrange the following in chronological order while purchasing material. 1. Place order 2. Payment of bill 3. Receive material 4. Inspection
1,3,2,4 1,2,3,4 1,3,4,2, 4,3,1,2 c
33 Which of the following is not a step in purchasing?
If necessary, request for quotation is made on prescribed quotation form to all the selected sources of supply
To achieve integration with other departments of the company
Open the quotations at described time on the prescribed date
Prepare a comparative statement of the rates, terms and condition mentioned in the quotations and then analyze then
b
34 The modern technique of material management is _______________. ISO MRP TQM EOQ b
35 The modern technique of material management is _______________. ISO TQM EOQ ERP d
36 __________ is a planning technique that calculates material requirement and schedule supply to meet changing demand across all product and parts.
TQM ISO MRP QA c
37 Which of the following is not input to MRP? ERP BOM Inventory record file
MPS a
38 Which of the following is function of MRP? To calculate what parts should be made or bought
39 Which of the following statement is wrong about MRP?
MRP insures that materials and components are available on the right quantities and at the right time
MRP takes information from the bill-of-material (BOM)
MRP takes information from MPS
None of these d
40
The master production schedule is a list of- 1. What end products are to be produced? 2. How many of each product is to be produced? 3. When the products shall be ready for shipment?
Only 1 Only 1 and 2 Only 2 and 3 All of these d
41 __________ is a list of component part and sub-assemblies needed to produce the final product.
MPS MRP BOM ERP c
42
The Bill of Materials (BOM) provides- 1. A product structure (tree) 2. List of what is needed for each component, sub-assembly and
assembly
Only 1 Only 2 Both 1 and 2 None of these c
43 ____________________ is the time required to manufacturer or purchase a component or assembly.
EOQ BOM Lead time ERP c
44 The _________________ keeps track of the inventory status for each item in the database.
Lead time BOM Inventory record file
Product structure c
45 Which of the following output of MRP? BOM MPS Inventory record file
Production schedule
d
46 Which of the following are benefits of MRP? Reduced inventory with fewer storage
56 __________________ of ERP gathers financial data from various functional departments, and generates valuable financial reports.
Financial module Human resource module
Production module
Purchasing module
a
57 ___________________ of ERP maintains a complete employee data based including contact information, salary details, attendance, performance evaluation and promotion of all employees.
Financial module Human resource module
Production module
Purchasing module
b
58 __________ of EPR streamlines procurement of required of raw material.
Financial module Human resource module
Purchasing module
Production module
c
59 What are the functions of materials management? Material planning Purchasing Store management All of these d
60 A well-coordinated material management programme may result into ___________________________.
increase in inventory
cost increase cost reduction decrease in inventory
c
61 Material handling cost means _____________________________________. loss due to deterioration
cost to be paid to costumer
cost of handling material
cost of handling material
d
62 Freight cost means ________________________________________________. cost of packing of material.
cost to be paid to customer.
cost required for movement of material.
inspection cost c
63 Market research is necessary for to get ___________________________________.
excessive material in advance.
information about market condition and availability of material.
goods stored in plant
required inventory b
64 Packing cost means ______________________________________________. cost of packing of goods
cost to be paid to customer
cost required for movement of material.
inspection cost a
65 What do you mean by insurance cost? Cost of insurance of goods while they are in transit.
Cost to be paid to costumer.
Cost of packing of material.
Cost required for movement of material.
a
66 Inventory control means ________________________________________________.
115 PO in materials management means? Placement officer Post officer Purchase order None of these c
116 The logic of ______ is based on the principle of dependent demand
MRP MRP II ERP SAP a
117 _______ determine quantity and timing for material planning. MRP II ERP SAP MRP d
118 Which is the input to MRP? Current forecasting
Order history and season
Bill of material All of these d
119 ERP means _____________________________________ Enterprise resource panning
Entry restricted products
Energy resources product
None of these a
120 ________________ uses all resources of the enterprise in a systematic way.
MRP MRP II ERP None of these c
121 Which are the functions in materials management? Planning Warehousing Storage management
All of these d
122 ________________________ can be defined as an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory.
Financial management
Marketing management
Inventory management
None of these c
123 _____________ include raw material and semi-finished products supplied by another firm and which are raw items for the present industry.
Raw inventories In-process inventories
Finished inventories
Indirect inventories
a
124 ____________________ involves semi-finished goods various stage of manufacturing cycle.
Raw inventories In-process inventories
Finished inventories
Indirect inventories
b
125 ABC analysis plays a vital role in _____________________ management.
Finance Inventory Human Resource Marketing b
126 Which is the first step in ABC analysis? Arranging the items
Determine unit price
Preparing the list of all item
None of these c
127 EOQ stands for _______________________________. Economic order quantity
Economic order quality
Economics order quality
None of these a
128 What is an assumption in EOQ? Lead time is known and is constant
153 ABC analysis divides an organization on hand inventory into three classes based upon __________________________________________.
annual consumption value
annual consumption
unit price the number of units on hand
a
154
The process or approach as seen in the figure, attempts to consolidate all of a company’s departments and functions into a single computer system that services each department’s specific needs. Identify the system.
157 Which of the following methods of stock control aims at concentrating efforts on selected items of material?
Perpetual inventory system
Material turnover ratio
Level setting ABC analysis d
158
From the EOQ, label the cost at point 1 and 2.
(1) Ordering cost (2) Storage cost
(1) Storage cost (2) Ordering cost
(1) Inventory cost (2) Ordering cost
(1) Ordering cost (2) Inventory cost
a
159 The table below shows the list of items as per their annual consumption and annual consumption value. Can you identify which type of analysis is this to have proper inventory control?
Control analysis Cost analysis Pareto analysis None of the above c
The figure shows a graphical method for determining the order quantity which attempts to minimize total inventory cost. Which is this tool used to answers the following questions. (1) How much should I order? (2) How often should I place each order?
EOQ ABC analysis Control chart ERP a
161 Ups and downs in consumption and delivery period are absorbed by _______________________________.
Buffer stock EOQ Procurement strategy
None of these a
162 In this Stock control chart, label the buffer stock – (a) Between (b) and (c)
Identify this basic inventory control technique which is often applied to almost all aspects of materials management.
Pareto analysis Tally Table EOQ Control chart a
169
A producer of consumer goods wants to analyze its product range from product 1 to product 13. The management has decided to use the annual consumption value (ACV) as the key figure to assess the product range. An ABC analysis is done and the raw data is order in decreasing order of ACV. How have they classified the product group in A, B and C category items?