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.

Multiple Choice Question on Industrial Safety Management

 

1. Water is used to extinguish

A. Class-A fires

B. Class-B fires

C. Class-C fires

D. All of the above

Answer A

 

2. Which accidents should be reported to management?

 A. Only serious accidents

B. Major accidents

C.  Which causes damages to machine

D. All

Answer D

 

3. Who may be responsible for accident?

 A. Worker

B. Working conditions

C. Management

D. All of the above

Answer D

 

4. Class-A fire consists of fire due to

 A. Wood

B. Oil

C. Transformer

D. Chemical

Answer A

 

5. Safety management deals with qualified______________.

 A. Personal injury

B. Prevention of an accident

C. Damage to the equipment

D. Loss of life

Answer B

 

6. For household wiring and small units, the following should be used for safety measure

         A. MCB

B. ACB

C. OCB

D. MCCB

Answer A

 

7. Industrial safety management is that branch of management which is concerned with ______ hazards from the industries.

 A. Controlling

B. Reducing

C. Eliminating

D. All of the above

Answer D

 

 8. The fire triangle does not include

 A. Oxygen

B. Fuel

C. Temperature

D. Heat

Answer C

 

9. Which of the following colour is used for radiation hazard?

         A. Red

B. Orange

C. Green

D. Purple

Answer D

 

10. Which is not included in the causes of accidents due to worker?

         A. Mischievous behaviour

B. Poor housekeeping

C. Leak of concentration

D. Overconfidence

Answer D

 

11. Industrial accidents have following types

         A. Non-machinery

B. Machinery

C. Both a and b

D. None of the above

Answer C

 

12. _____ improves the safety in an industry

A. Reduced noise level

B. Good house keeping

C. Material handling system

D. All of the above

Answer A

 

13. The following class of fire occur in electrical equipment

A. Class-A fires

B. Class-B fires

C. Class-C fires

D. All of the above

Answer C

 

14. Which of the following is an unsafe condition.

A. Improper material handling

B. Hazardous arrangement of material

C. Poor house keeping

D. Long working hours

Answer D

 

15. Most of the industrial accidents are

A. Unavoidable

B. Not preventable

C. Preventable

D. None of the above

Answer C

 

 16. Check list for Job Safety Analysis (JSA) consists of

A. Work area, material, machine, tools

B. Men, machine, material, tools

C. Men, machine, work area, tools

D. Men, work area. Material, tools

Answer A

 

17. A safety programme consists of

A. Three E’s

B. Four E’s

C. Five E’s

D. Six E’s

Answer B

 

Answers-

1-A,2-D,3-D,4-A,5-B,6-A,7-D,8-C,9-D,10-D,11-C,12-A,13-C,14-D,15-C,16-A,17-B.

Maintenance Management MCQ Multiple Choice Questions with Answers

1.   Total productive maintenance aims at

        A.   Less idle time

        B.   Increase in productivity

        C.   Zero down time

        D.  None of the above

2.   Maintenance consist of the following action(s)

A.   Replace of component

B.   Repair of component

C.   Service of component

D.  All of the above

3.   (Down time in hours / Available hours) =

A.   Maintenance effectiveness

B.   Frequency of breakdown

C.   Effectiveness of maintenance planning

D.  None of the above

    4.   The down time cost consists of

A.   Loss of production

B.   Wages paid to the workers

C.   Reduction in sales

D.  All of the above

5.   A systematic approach for maintenance is

A.   Problem – Cause – Diagnosis – Rectification

B.   Problem– Diagnosis – Cause – Rectification

C.   Problem – Measure – Diagnosis – Rectification

D.  Problem– Diagnosis – Measure – Rectification

6.   The following is not a classification of maintenance

A.   Corrective maintenance

B.   Timely maintenance

C.   Scheduled maintenance

D.  Preventive maintenance

7.   The ____ goes on increasing with the increase in degree of maintenance efforts.

A.   Cost of down time

B.   Cost of spares and maintenance

C.   Labor and Overhead Cost

D.  All of the above

8.   The following is not a classification of maintenance

A.   Timely maintenance

B.   Corrective maintenance

C.   Scheduled maintenance

D.  Preventive maintenance

9.   With the increase in preventive maintenance cost, breakdown maintenance cost

A.   Increases

B.   Decreases

C.   Remain same

D.  Any of the above

 

         

Answers-

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