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

Inventory Management MCQ Multiple Choice Questions with Answers

 

1.  The costs associated with inventory is/are

A.  Purchase price of the inventory

B.  Re-order costs

C.  Inventory holding costs, Shortage costs

D.  All of the above

Answer D

2.  In ABC analysis which inventory is classified into category ‘A’ items? 

A.  Annual consumption cost is around 15-25% 

B.  Annual consumption cost is around 70-80% 

C.  Annual consumption cost is around 5-10%

D.  Annual consumption cost is around 50%

Answer B

3.  Shortage costs of inventory include

A.  Lost profit on sale

B.  Future loss of profit due to loss of customer goodwill

C.  Costs due to production stoppage due to shortage of raw materials

D.  All of the above

Answer D

4.  Cycle inventory helps in

A.  Finding out the amount of stock required during a finite period in order to move the materials from one location to another

B.  Taking advantage of economies of scale and reducing cost within the supply chain

C.  Taking care of any special event that does not occur on a regular basis

D.  All of the above

Answer B

5.  Re-order costs are the costs of making orders to purchase a quantity of a material item from a supplier. They include costs such as:

A.  The cost of delivery of the purchased items, if these are paid for by the buyer

B.  The costs associated with placing an order, such as the costs of telephone calls

C.  Costs associated with checking the inventory after delivery from the supplier

D.  All of the above

Answer D

6.  Inventory holding costs include:

A.  Cost of capital tied up

B.  Insurance costs

C.  Cost of warehousing, obsolescence, deterioration and theft

D.  All of the above

Answer D

7.  Buffer/safety inventory – the basic level of inventory kept for emergencies. A buffer is required because both demand and lead time will fluctuate and predictions can only be based on best estimates.

A.  The above statement is correct

B.  The above statement is incorrect

Answer A

8.  The inventory which is dependent on alternative modes of transportation is known as

A.  Safety inventory

B.  Pipeline inventory

C.  Cycle inventory

D.  Seasonal inventory

Answer B

9.  In ABC analysis which inventory is classified into category ‘B’ items? 

A.  Annual consumption cost is around 15-25%

B.  Annual consumption cost is around 70-80%

C.  Annual consumption cost is around 5-10%

D.  Annual consumption cost is around 50%

Answer A

10.  The best strategy of minimizing the amount of safety inventory to be kept in a store without hurting the level of customer service is

A.  Minimizing the cycle service level

B.  Reducing the supply lead time

C.  Minimizing the uncertainty inherent in supply

D.  Minimizing the uncertainty inherent in demand

Answer C

Ergonomics Multiple Choice Question on Ergonomics with Answers | MCQs

 

 

1. The basic definition of Ergonomics is?

 

A.   Using relaxed posture

B.   Fitting the workstation to the employee

C.   Fitting the employee to the workstation

D.   Either B or C

Answer B

 

2. ‘Ergonomics’ is related to human

 

A.   Comfort

B.   Safety

C.   Both ‘a’ and ‘b’

D.   None of the above

Answer C

 

3. Ergonomics principle suggests that

 

A.   Monitoring displays should be placed outside peripheral limitations

B.   Glow-in-the dark dials made of reflective substances are good for viewing in the nights

C.   Visual systems should be preferred over auditory systems in noisy locations

D.   All of the above

Answer C

 

4. The following subjects are related to ‘Ergonomics’

 

A.   Anthropology

B.   Physiology

C.   Psychology

D.   All of the above

Answer D

 

5. Ergonomics is a body of knowledge concerned with:

 

A.   Human abilities

B.   Design of tools, machines, systems, tasks, jobs, and environments

C.   Fitting the job or task to the person

D.   All of the above

Answer D

 

6. Examples of administrative controls include all except:

 

A.   Rest breaks

B.   Rotating workers through different jobs

C.   Installation of an adjustable height keyboard tray

D.   An effective tool maintenance program

Answer C

 

7. Engineering controls involve:

 

A.   Workplace policy, procedures, and practices that minimize the exposure of workers to risk conditions

B.   A change in the physical features of the workplace

C.   Application of proper personal protective equipment

D.   Medical management

Answer B

 

8. Which of the following could be considered an engineering control for an office ergonomics hazard:

 

A.   Switching to a chair with greater adjustability

B.   Implementing a stretching program

C.   Implementing a pre-work screening process

D.   Purchasing wrist braces

Answer A

 

9. Four commonly recognized computer workstation postures are:

 

A.   Sitting, standing on both feet, standing with one foot resting, reclined

B.   Standing, sitting tilted forward, sitting upright, sitting tilted back

C.   Standing forward, laying down, sitting up, sitting on knees

D.   Sitting with arms supported, standing with no arm support, seated with foot support, seated with no foot support

Answer B

 Answer-

 1-B, 2-C, 3-C, 4-D, 5-D, 6-C, 7-B, 8-A, 9-B.

MCQs on Material Handling

 

1. Raw Materials and WIP can be classified under ________

A. Direct Material

B. Indirect Material

C. Finished Material

D. Standard Parts

2. Material handling consists of movement of material from

A.   One machine to another

B.   One shop to another shop

C.   Stores to shop

D.   All of the above

3. The following is used to transport materials having flat bottoms

A.   Belt conveyor

B.   Roller conveyor

C.   Chain conveyor

D.   None of the above

4. _________ are the basic materials which have not undergone any conversion since their receipt from suppliers.

A.   WIP

B.   Raw Material

C.   Finished Parts

D.   Work Made Parts

5. Economy in material handling can be achieved by

A.   Employing gravity feed movements

B.   Minimizing distance of travel

C.   By carrying material to destination without using manual labour

D.   All of the above

6. The business cycle, price trends, National Economy is ___________

A.   Micro Factors

B.   Macro Factors

C.   Controllable Factors

D.   None of the above

7. Fork lift truck is used for

A.   Lifting and lowering

B.   Vertical transportation

C.   Both ‘a’ and ‘b’

D.   None of the above

8. _______also called part lists or building lists is the document generated at the design stage.

A.   MRP (Material Requirement Planning)

B.   BOM (Bill of Materials)

C.   MPS (Master Production Schedule)

D.   None of the above

9. Special purpose material handling equipment are used in

A.   Process layout

B.   Line layout

C.   Both ‘a’ and ‘b’

D.   None of the above

10.  Which of the following condition of rail surface will offer the least resistance?

A.   Very wet

B.   Very dry

C.   Average dampness

D.   Grease

Answers-

1-A,2-D,3-B,4-B,5-D,6-B,7-C,8-B,9-B,10-D

MCQ On Production Planning and Control

 

1.   Which of the following functions of the production planning and controlling is related to the time table of activities

A.   Routing

B.   Expediting

C.   Scheduling

D.  Dispatching

 

2.     Which of the below is not a popular production system?

A.   Continuous production

B.   Job order production

C.   Batch production

D.  Project production

 

3.     Which of the following is not the function of Production, Planning & Control(PPC)?

A.   Routing

B.   Integration of processes

C.   Scheduling

D.  Expediting and follow-up

 

4.     Which of the following is not a part of Five M’s?

A.   Material

B.   Machine

C.   Motion

D.  Method

 

5.     Procurement cycle time is time consumed for

A.   Receiving of raw material

B.   Inspection of various raw materials

C.   Inspection of purchased components parts

D.  All of the above

 

6.     The correct sequence of operations in production planning and control is

A.   Routing-Scheduling-Dispatching-Follow up

B.   Scheduling-Routing- Dispatching-Follow up

C.   Dispatching-Routing-Scheduling- Follow up

D.  Routing-Scheduling-Follow up-Dispatching.

 

7.     Which of the following organisation is preferred in automobile industry?

A.   Functional organization

B.   Line organization

C.   Staff organization

D.  Line and staff organizations

 

8.     The transit time consist of

A.   Time taken by raw material from machine to machine

B.   Time consumed in moving the work between various departments

C.   Time taken by a worker to machine a component

D.  None of the above

 

9.     Gantt chart is mostly used for

A.   Routing

B.   Scheduling

C.   Follow up

D.  Inspection and quality control

 

10. Critical path method

A.   Helps in ascertaining time schedules

B.   Makes better and detailed planning possible

C.   Provides a standard method for communicating project plans schedules and to time and cost performance

D.  All of the above

Answers-

1-C, 2-D, 3-B, 4-C, 5-D, 6-A, 7-D, 8-B, 9-B, 10-A