1. Which among the following is a type of inventory system that is used to manage independent demand items?
A. Order point system
B. Material Requirements Planning
C. Time Phased Order Point
D. Enterprise Resource Planning
2. An effective inventory management minimises the investment in inventory by effectively meeting the ______.
A. Functional requirement
B. Customer requirement
C. Process reliability
D. Sales forecasting of a firm
3. To achieve _______ in purchasing and transportation, goods may be purchased in larger quantities than the actual demand.
A. Continuation
B. Quality
C. Cost efficiency
D. Potential value
4. Which among the following is the objective of the Enterprise Resource Planning system?.
A. Manage purchase order
B. Control the flow of dependent demand inventories
C. Organise external management information
D. Balance supply and demand
5. Which among the following models is used to calculate the timing of the inventory order?
A. Economic order quantity model
B. Fixed order quantity model
C. Reorder point model
D. Fixed order inventory model
6. The type of inventory method that comprises more number of accounting transactions is known as ______.
A. Periodic inventory method
B. Perpetual inventory system
C. Finished goods inventory method
D. Fixed order period inventory system
7. In the ABC Analysis system the B category stands for_____.
A. Outstanding importance in value
B. Comparatively unimportant in value
C. Comparatively important in value
D. Average importance in value
8. Which among the following is a quantity of a specific item that is ordered from the supplier and issued as a standard quantity to the production process?
A. Safety stock
B. Lot size
C. Standard deviation
D. Inventory control
9. The economic order quantity formula is taken using _____.
A. Differential calculus
B. Integral calculus
C. Vector calculus
D. Multivariate analysis
10. Which among the following components is calculated as the sum of the fixed costs that happen each time an item is ordered?
A. Carrying cost
B. Order cost
C. Holding cost
D. Storing cost
11. The price reductions offered to customers for large orders, to encourage them to purchase in large quantities is known as ______.
A. Freebies
B. Quantity discounts
C. Normal discounts
D. Premiums
12. A company that maintain a sufficient safety margin by having extra inventory against certain situations are termed as ________.
A. inventory
B. lot size
C. safety stock
D. lead
13. Identify the mode of production that is widely used in a production model and in the assembly operations?
A. Round-robin mode
B. Batch mode
C. Grid mode
D. Parallel mode
14. Which among the following costs is the expense of storing inventory for a specified period of time?
A. Purchasing cost
B. Carrying cost
C. Financial cost
D. Storing cost
15. Which among the following is the ratio of net profit to net sales?
A. Net Operating ratio
B. Gross profit ratio
C. Pretax Profit ratio
D. Net profit ratio
16. A method that uses a predetermined overhead rate to allocate overhead costs is known as ______.
A. Plant-wide allocation
B. Shipping allocation
C. Department allocation
D. Production-wide allocation
17. Which of the following costs is estimated by multiplying the quantity determined in the bill of materials to the cost of each component?
A. Operating
B. Production
C. Labour
D. Material
18. A long term solvency or leverage ratio is called as _______.
A. Net profit ratio
B. Proprietary ratio
C. Activity ratio
D. Stock turnover ratio
19. Which among the following systems provide a process that enables one to track product movement throughout the company?
A. Item tracker system
B. Product locator system
C. Memory locator system
D. Real-time locator system
20. Pareto’s law is related to ________ placement theory.
A. Item stratification
B. Special consideration
C. Family grouping
D. Inventory stratification
21. Identify the system that allows you to have strong control over items without necessarily updating the location records?
A. Zoning systems
B. Fixed locator system
C. Zone locator system
D. Combining system
22. Manufacturers actually print the labels provided to them and serial numbers to aid in _______.
A. Quality audit
B. Quality control
C. Auditing process
D. Product quality
23. The method of item placement that can accidentally substitute an item onto another is _______.
A. Family grouping
B. Part grouping
C. ABC categorisation
D. Category mapping
24. The movements of stock must be controlled with information regarding _______.
A. Space utilisation
B. Order status
C. Labour utilisation
D. Material protection
25. An alteration to the method of setting up zones or area in the depot and assigning it to one person to each area is called _______.
A. Zone logic
B. Zone allocation
C. Sequential zone system
D. Random zone system
26. Which among the following refers to areas where items are not stored in selected permanent locations?
A. Fixed location
B. Random location
C. Location sequence
D. Pick-to-clear location
27. The expense of shifting the packed orders into vehicles that would ship them is known as _______.
A. Shipping cost
B. Packing cost
C. Loading cost
D. Picking cost
28. Distribution centres act as _______ store houses of an organisation.
A. Delivery
B. Regional
C. National
D. Procurement
29. The company should be prepared for any future demand from the customer by storing the _____ in the distribution centres.
A. Delivery stock
B. Strategic stock
C. Safety stock
D. Overhead stock
30. Which among the following systems deals with defining a well-defined process or procedure to manage distribution?
A. Logistics system
B. Pull distribution system
C. Inventory management system
D. Push distribution system
31. Which among the following improves the overall performance of the organisation and helps to achieve efficient distribution and delivery system?
A. Just-in-Time
B. Master Production System
C. Customer responsiveness
D. Lead-time offsetting
32. The rules that govern a barcode are specified in the ______.
A. Codabar
B. Symbology
C. Database
D. Information system
33. The term used to denote a stacked 2D symbology is ______.
A. Determinant
B. Group
C. Matrix
D. Barcode list
34. Which among the following code sets include all standard alphanumeric keyboard characters along with lower case alpha and special characters?
A. Code set A
B. Code set B
C. Code set C
D. Code set D
35. The most common symbologies are Code 39, ______, and UPC.
A. Code 25
B. Code 93
C. Code 128
D. Code 11
36. Which among the following uses the CCD technology?
A. Cell phone cameras
B. Pen type readers
C. Laser scanners
D. Video camera readers
37. By finding out the number of times a company places orders one can calculate its ______.
A. Min-max system
B. Product demand
C. Evaluation phase
D. Review cycle
38. By knowing the ______, a company would know the cost of items that have to be refilled or added to inventory.
A. Selling cost
B. Buying cost
C. Replenishment cost
D. Differentiation cost
39. Which among the following is a computerised system that controls the kind of items to be purchased and also decides on the quantity that needs to be purchased?
A. Order point system
B. Material Requirements Planning
C. Time Phased Order Point
D. Enterprise Resource Planning
40. Identify the measure taken to deal with the issues relating to not having the right item at the right place at the right time.
A. Increase on-hand safety stock
B. Increase the inventory stock
C. Decrease the inventory stock
D. Decrease the safety stock
41. State True or False:
1. Raw materials can be produced and extracted by a firm or can be purchased from outside the firm.
2. Work in process items are the inventory items that are not ready to be used by the customer.
A. 1-True, 2-True
B. 1-False, 2-False
C. 1-True, 2-False
D. 1-False, 2-True
42. The objective of maximising ______ conflicts with minimising _______ in inventory.
A. Purchase, investment
B. Production, cost-efficiency
C. Profit, negative cash flow
D. Storage capacity, loss
43. Assume that you are responsible for managing inventory in your organisation. As a result of an increase in the demand for your company’s products, you have purchased lots of inventory at a time. On what basis will you categorise the huge inventory accumulated in your firm?
1. Based on the source of demand
2. Based on the position of inventory
3. Based on the size of the inventory
4. Based on the function of inventory
A. 1, 2 & 4
B. 1, 3 & 2
C. 2, 3 & 4
D. 1, 2, 3 & 4
44. State True or False:
1. Examples of MRO goods are oils, lubricants, coolants, packing material, tools, nuts, bolts, and screws.
2. Higher the buffer inventory better is the customer service.
A. 1-False, 2-False
B. 1-True, 2-False
C. 1-True, 2-True
D. 1-False, 2-True
45. State True or False
1. Time-based ordering model involves greater risk.
2. Time based ordering model has the possibility of inventory running out before its review is complete.
A. 1-False, 2-True
B. 1-False, 2-False
C. 1-True, 2-False
D. 1-True, 2-True
46. State True or False
1. While drawing strategies to develop efficient logistics for a company, the manager has to focus on capital reduction and cost reduction objectives.
2. The selection of means of transportation depends on the location of the customer and time within which the product has to be delivered to the customer.
A. 1-True, 2-False
B. 1-False, 2-True
C. 1-True, 2-True
D. 1-False, 2-False
47. The time period between placing two successive orders is called ______ and the time period between ordering an item for replenishment and actually receiving the item into the inventory is called as _______.
A. Lead time, order cycle
B. Order cycle, lead time
C. OTC cycle, idle time
D. Idle time, OTC cycle
48. Reorder point = ______ + ______
A. Lead time demand, safety stock
B. Forecasted daily unit sale, lead time
C. Reorder point, lead time demand
D. Safety level of stock, demand per day
49. Inventory carrying costs consists of _______ and ______.
A. Shipping cost, storage cost
B. Handling cost, storage space cost
C. Vendor cost, physical management cost
D. Storage cost, physical management cost
50. Which among the following are the factors that determine inventory levels?
A. Vendor delivery and storage cost
B. Item perishability and storage capacity
C. Spoilage and cost of tracking inventory
D. Item cost and vendor delivery
51. Identify the two components that make up the EOQ equation.
A. Order cost, setup cost
B. Quality cost, setup cost
C. Annual usage, carrying cost
D. Quality cost, annual usage
52. State True or False
1. Safety stock can be set in weeks or units of stock at the simplest level.
2. The larger the lot size, fewer is the number of lots required and hence higher is the annual set-up cost.
A. 1-False, 2-True
B. 1-True, 2-True
C. 1-True, 2-False
D. 1-False, 2-False
53. Which among the following are the factors to be considered while calculating safety stock?
A. Adjusted service level, annual usage
B. Ordering period, cycle time
C. Cycle time, forecast error
D. Forecast error desired service level
54. Identify the two ways used to measure the service level.
A. Unit Service Level (USL), Demand Service Level (DSL)
B. Order Service Level (OSL), Unit Service Level (USL)
C. Order Service Level (OSL), Demand Service Level (DSL)
D. Production Service Level (PSL), Unit Service Level (USL)
55. State True or False
1. The LILO tracking is the preferred approach for tracking items with a short shelf life as pickers usually access the oldest items first without any need for computer tracking.
2. Executives and shareholders need to fully understand supply chain implications to keep track of the inventory levels.
A. 1-True, 2-False
B. 1-False, 2-True
C. 1-True, 2-True
D. 1-False, 2-False
56. Which among the following are the methods used to treat the obsolete stock?
A. Create a Materials Review Board (MRB), track the rework status actively
B. Specific identification, track work status actively
C. Track work status actively, create a Material Check Board (MCB)
D. Track purchase order, create a Materials Review Board (MRB) and Track the rework status actively
57. Inventory turnover ratio = _______ / _______.
A. Beginning inventory, total goods sold
B. Average inventory at cost, ending inventory
C. Cost of goods sold, average inventory at cost
D. Total goods sold, cost of goods sold
58. Which among the following are the overhead activities used to produce snowmobiles and riding mowers?
A. Admission, pathological testing
B. Dietary and laundry, engineering changes and quality-control inspections
C. Engineering changes, quality-control inspections
D. Radiological testing, quality-control inspections
59. State True or False
1. Fabrication activity is labour-intensive which involves assembling machined pieces (components or parts) manually into a final product.
2. When the acid-test and current ratio are low it indicates that the supplier has a cash problem.
A. 1-False, 2-False
B. 1-True, 2-True
C. 1-False, 2-True
D. 1-True, 2-False
60. State True or False
1. All barcode readers consist of a decoder circuitry.
2. The sensors present in the scanner provide the barcode’s image data to the circuitry.
A. 1-True, 2-False
B. 1-False, 2-True
C. 1-False, 2-False
D. 1-True, 2-True