Thursday, October 27, 2011

Materials Management - 7

Materials Management - 7

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

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

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

Match The Following
Question
Correct Answer

Vendor rating
Right source

Replenishment method
Right time

Competitive bidding
Right price

EOQ
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

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

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

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

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

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

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.

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

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


Multiple Choice Multiple Answer
Question
A contract terminates under following condition :-
Correct 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


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


Match The Following
Question
Correct Answer

Speculative buying
Bulk purchasing

Capital purchasing
Plant and machinery

Group purchasing
Hardware materials

Service contract
Typewriters


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


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

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

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

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

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

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


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

Select The Blank
Question
________is suitable for procurement from non-profit making organization.
Correct Answer
Cost plus zero fee

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

Multiple Choice Single Answer
Question
JIT aims at :-
Correct 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


Multiple Choice Single Answer
Question
Internal factor influencing materials planning:-
Correct 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

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

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

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

Multiple Choice Single Answer
Question
Mechanical tests are performed to :-
Correct 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

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

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


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

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

Materials Management - 6
True/False
Question
EOQ model is based on the assumption that unit price is fixed.
Correct Answer
True

Multiple Choice Multiple Answer
Question
Obsolescence cost is :-
Correct 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

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

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

Select The Blank
Question
Down time means ________.
Correct 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

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

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


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


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

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


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

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


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


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

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


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

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

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

Match The Following
Question
Correct Answer

JIT
Highly vulnerable to supply failures

TPM
Removal of uncertainty

Quality at source
Elimination of incoming inspection

Lower unit cost
JIT


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


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


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


Match The Following
Question
Correct Answer

Fast moving items
Very near to the issue counter

Antibiotics
In a air conditioned store

Costly items like fuel injector
In locked cupboard & away from entrance of store.

Inflammable & hazardous items
In a separate store


Multiple Choice Multiple Answer
Question
Discolourisation of soaps is due to :-
Correct 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


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


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


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

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


Multiple Choice Multiple Answer
Question
Receiving inspector should have to :-
Correct 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


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


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


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


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


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

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


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

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


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

Materials Management - 5
Select The Blank
Question
Conformance to ________ is checked against component drawings.
Correct Answer
Dimensions


Multiple Choice Single Answer
Question
The inventories which refer to the maintenance, repair and operation supplies which are consumed during process of manufacturing but do not become part of the product is :-
Correct Answer
MRO inventories


True/False
Question
Import substitution in reality should be looked upon as "Import avoidance"
Correct Answer
True


True/False
Question
Deterioration & Obsolescence cost are similar.
Correct Answer
False


Select The Blank
Question
Customs duty is charged on the imported goods as per ________.
Correct Answer
Customs tariff rules


Multiple Choice Multiple Answer
Question
In a contract buyer has right to :-
Correct Answer
Examine the goods , Reject the goods delivered in wrong quantity , Reject non conforming goods

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


True/False
Question
Purchasing policies are implemented by framing procedures and rules.
Correct Answer
True


True/False
Question
Black bituminous paint should be applied to rubber parts.
Correct Answer
False


Multiple Choice Single Answer
Question
Pending purchases indent report :-
Correct Answer
Highlights indents yet to be converted in to purchase-orders


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

Multiple Choice Multiple Answer
Question
The following are the actions would help to improve effectiveness of materials planning :-
Correct Answer
Accurate forecasting , Computerization , Shorter materials plan period


Select The Blank
Question
Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.
Correct Answer
Materials

True/False
Question
OEM discount is given by the supplier with a view to widen customer's base.
Correct Answer
True


Multiple Choice Single Answer
Question
A buyer gives wrong idea to his supplier about his requirements or show a fictitious figure to get some price discount is called as :-
Correct Answer
Misrepresentation of facts


Multiple Choice Multiple Answer
Question
Purchasing and procurement cost reduction is possible through :-
Correct Answer
Blanket orders , Green purchasing , System contracting

Select The Blank
Question
________ department in almost all companies is the biggest spending department and the custodian of company's purse.
Correct Answer
Purchasing


Select The Blank
Question
________ find their use in identification of raw materials, lubricants, pipelines etc.
Correct Answer
Colour codes


Select The Blank
Question
________ is a complex combination of men, machines, materials and tools.
Correct Answer
Manufacturing

Multiple Choice Single Answer
Question
What is the meaning of storekeeping?
Correct Answer
Physical storage of goods under custodianship in a systematic manner

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

Multiple Choice Single Answer
Question
Competitive price information must be treated as confidential and should not be disclosed to the bidders with an intention of allowing them to rebid is :-
Correct Answer
Improprieties of bids

Match The Following
Question
Correct Answer

JE
Journal Entries

PO
Purchase order

GRN
Goods receipt note

DN
Discrepancy note.


Multiple Choice Single Answer
Question
Traffic division is concerned with :-
Correct Answer
Arrangement of eco. Transportation of incoming and outgoing materials

Multiple Choice Single Answer
Question
Issue of stock is :-
Correct Answer
Process of reacting by stores

True/False
Question
Cancellation of orders on flimsy ground is unethical.
Correct Answer
True

Select The Blank
Question
Systematic ________of stores is the key to its efficient operation.
Correct Answer
Layout

Multiple Choice Single Answer
Question
Foreign trade is controlled by Government for :-
Correct Answer
Promoting export &controlling import

Multiple Choice Multiple Answer
Question
In review system-optional replenishment :-
Correct Answer
Reorder level is fixed , Review period is fixed


Multiple Choice Multiple Answer
Question
The receiving stores copy is used by it :-
Correct Answer
To ensure that supplier effects supply of only items ordered on him. , To ensure that supplier does not supply more than the quantity stipulated in the purchase order. , To ensure that the supplier effect deliveries through the mode of transport asked for by the buyer.


True/False
Question
A company wishing to use preferred numbers must decide first the smallest size to be made, then largest size to be made and then the total no. of sizes to be made.
Correct Answer
True

Multiple Choice Single Answer
Question
Finished goods means :-
Correct Answer
Goods which are ready to ship

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

Multiple Choice Multiple Answer
Question
Quantity discounts are offered when :-
Correct Answer
Buyer tempts to produce large quantity , Production is higher & cost is less


Multiple Choice Multiple Answer
Question
Advantages of fixed price agreements are :-
Correct Answer
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

Select The Blank
Question
Originating department of daily material receipt report is ________.
Correct Answer
Receiving store

Select The Blank
Question
________ is the arrangement of items into groups according to a pre determined pattern.
Correct Answer
Classification


Multiple Choice Multiple Answer
Question
Main information in the bill of material is :-
Correct Answer
Part no. , Material specification , Quantity per assembly

Match The Following
Question
Correct Answer

LC
Labour cost as considered at the time of contract

MA
Actual material cost as on date.

MC
Material cost as considered at the time of contract

LA
Actual labour cost as on date


Multiple Choice Single Answer
Question
Heat is :-
Correct Answer
An physical agent


Multiple Choice Single Answer
Question
A formal request to the purchase department, by the indentor to procure the items mentioned therein and within the indicated time schedule is :-
Correct Answer
Purchase indent



True/False
Question
Coal and coke gas used for power generation and process heating are direct materials.
Correct Answer
False

Select The Blank
Question
In a contract of sale by description the goods sold must be of ________ quality.
Correct Answer
Merchantable

True/False
Question
Annual total cost remain constant though stock-turn over rate changes.
Correct Answer
False

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


True/False
Question
Single tender system is used when there is only one supplier of the item.
Correct Answer
True


Select The Blank
Question
In traditional purchasing, quality is confirmed ________.
Correct Answer
On receipt

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