Material Management | Multiple Choice Questions | MCQs

  

              

1.  Materials management is also called____________

A. Distribution planning

B. Control and logistics management

C. Both of the above

D. Neither of the above

Answer C

2.  Raw Materials and WIP can be classified under ________  

A.  Indirect Material 

B.  Direct Material 

C.  Finished Material

D.  Standard Parts

Answer B

3.  Buying according to the requirements is called ________

A.  Seasonal Buying

B.  Hand to mouth buying

C.  Scheduled Buying

D.  Tender Buying

Answer B

4.  _________ also called part lists or building lists is the document generated at the design stage.

A.  BOM (Bill of Materials)

B.  MRP (Material Requirement Planning)

C.  MPS (Master Production Schedule)

D.  All of the above

Answer A

5.  The first activity of Purchasing cycle is _____________

A.  Communicating requirement to the purchase

B.  Source Selection and development

C.  Recognizing the need for procurement

D.  Inspection of goods

Answer C

6.  ____ is the time that elapses between issuing replenishment order and receiving the material in stores.

A.  Replenishment time

B.  Lead time

C.  Idle-time

D.  None of the above

Answer B

7.  ____ is the scientific technique for planning the ordering and usage of materials at various levels of production and for monitoring the stocks during these transactions.

A.  MRP

B.  MPS

C.  BOM

D.  None of the above

Answer A

8.  Materials management is a coordinating function responsible for planning and controlling materials flow. Its objective(s) is/are:

A.  Maximize the use of the firm's resources

B.  Provide the required level of customer service

C.  Both of the above

D.  Neither of the above

Answer C

9.  Procurement costs consist of ______________________________.  

A.  Cost of receiving quotations

B.  Cost of processing quotation and issuing purchase order

C.  Cost of following up and expediting purchase order

D.  All of these

Answer D

10.  The modern technique of material management is _______________.

A.  ISO

B.  MRPe

C.  TQM

D.  MEOQ

Answer B

MCQs on Purchase Management

1.  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 

A. Exact quantity of material to be purchased and its specification is decided 

B. Prepare a list of suppliers who deal with the business of the articles to be purchasing and are reliable

C. Pen the quotations at prescribed time on the prescribed date

D. Prepare a comparative statement of the, terms and conditions mentioned in the quotation and then           analyze them.

Answer A

2.  The important functions of purchase departments are __________________________. 

A. preparation of purchasing budget 

B. track pending purchase order 

C. issue and follow up purchase order  

D. all of these

Answer D

3.  Which of the following is/are the assumptions of Economic order quantity (EOQ)?

A.  There are no bulk purchase discounts for making orders in large sizes. All units purchased for each         item of material cost the same unit price.

B.  The order lead time (the time between placing an order and receiving delivery from the supplier) is        constant and known.

C.  Annual demand and consumption for the inventory item is constant throughout the year.

D.  All of the above

Answer D

4.  The order quantity or purchase quantity that minimize the total annual cost of ordering the item plus holding it in store is called the economic order quantity or EOQ.

A. True

B. False

Answer A

5.  The EOQ can be calculated using a:

A. Table

B. Graph

C. Formula

D.    All of the above

Answer D

6.  Supply lead time. This is the period of time between placing a new order with a supplier and receiving the delivery of the purchased items. The length of this supply lead time might be uncertain and might be several days, weeks or even months.

A. The above is statement is correct

B. The above statement is incorrect

Answer A

7. Reorder level is the level of inventory at which a new order for the item should be placed with the supplier.

A. True

B. False

Answer A

8.  There are four methods of government procurement. Which is not one of these methods?

A. Assistance

B. Sealed bidding

C. Competitive proposals

D. Acquisition

Answer D

9.  Which is not a consideration in a make or buy decision?

A. Cost factors

B. Sales volume

C. Existence of sufficient administrative / technical personnel

D. Political and social factors with the organization

Answer B

10.  The Bid Evaluation process is characterized by all of the following activities except?

A. Evaluation of suppliers financial resources

B. Ability to comply with technical specifications

C. Delivery schedule and cost factors

D. Competitors method of sourcing

Answer D

11.  __________ is a written order directing the contractor to make changes according to the provisions of the contract documents.

A. Change order / purchase order amendment

B. Contract order modifications

C. Contractor claim

D. Owner directive

Answer A