Operations & Supply Chain Management | Chapter 4 | Part 4 | MBA MCQs | OSM

Operations and Supply Chain Management MCQs

  

 

1. ABC Classification
   of inventory is a
   means to
   categorizematerials
   in terms of their
   1.   Function
   2.   Storage
      requirements
   3.   Annual Usage
      Value
   4.   Type
2. Which of the
   following inventory
   control methods is
   more appropriate
   for items with
   dependent demand
   than for items with
   independent
   demand
   1.   Reorder Point
   2.   Material
      Requirement
      Planning
      (MRP)
   3.   Time Phased Order Point
   4.   ABCAnalysis
3. Each of the
   following order
   quantity methods is
   considered a
   discrete technique
   except
   1.   Lot-for-Lot
   2.   Fixed Order
      Quantity
   3.   Periods of
      Supply
   4.   Least Unit
      Cost
4. Each of the
   following is an
   advantage of a
   locked stockroom
   except
   1.   Quick access
      to materials by
      user
   2.   Reduced
      Shortages
   3.   Less loss due
      to shrinkage
   4.   Increased
      record
      accuracy
5. The ABC
   Classification
   method would be
   expected to reveal
   that :
   1.   20%of value is
      in 80% of
      items
   2.   20%of value
      is in 40% of
      items
   3.   20%of value is
      in 60% of
      items
   4.   20%of value
      is in 20% of
      items
6. Which of the
   following activities
   is not part of
   physical supply
   /distribution
   1.   Transportation
   2.   Capacity
      Planning
   3.   Order Entry
   4.   Warehousing
7. What is an
   inventory record
   systemthat keeps a
   continuous account
   of transactions as
   they occur?
   1.   Perpetual
      Inventory
      System
   2.   Safety Stock
      System
   3.   Two-bin
      System
   4.   Period
      Inventory
      System
8. Periodic review
   means
   1.   Ordering
      inventory in
      consultation
      with suppliers relative to
      their available
      capacity
   2.   Ordering
      inventory when
      it falls below
      the designated safety stock
      level
   3.   Ordering
      inventory at a
      predetermined
      re-order level
   4.   Ordering
      inventory at
      a fixed and regular time
      interval
9. Which of the
   following are
   NOT advantages
   of a periodic
   review system?
   1.   Lower safety
      stock
   2.   Can permit
      combining
      orders to
      common
      suppliers
   3.   Convenient
      administration
      of inventory
      control
   4.   All of the
      above
10. The total cost for
    a continuous
    review system
    with uncertain
    demand excludes
    consideration of
    1.   product cost
    2.   ordering
       cost
    3.   cycle inventory
       holding cost
    4.   safety stock
       holding cost
11. A visual version
    of the Q system
    1.   is the twobin
       system
    2.   is the P
       system
    3.   is the R
       system
    4.   is the ABC
       system
12. A P system has an
    advantage over
    the Q system
    1.   because
       orders from
       multiple
       items from
       one
       supplier
       can be
       combined
       into a
       single
       purchase
       order
    2.   because
       fixed lot
       sizes, if large
       enough, can
       result in
       quantity
       discounts
    3.   because lower
       safety stocks
       result in
       savings
    4.   because the
       review
       frequency of
       each items
       may be
       individualized
13. A reorder point
    will fall if
    1.   the variance
       of demand
       rises.
    2.   the chance
       of a
       stockout
       falls
    3.   the setup cost
       rises.
    4.   the lead time
       falls.
14. Lisa’s Card
    Cache uses ABC
    analysis. Which
    of the following
    statements is
    NOT true of ABC
    analysis?
    1.   ABC
       analysis
       uses the
       Pareto chart
       concept
    2.   ABC
       analysis
       allows the
       company to
       control
       inventory shrinkage
    3.   Generally, the
       Class A items
       account for
       approximately
       80 percent of
       the Rupee
       usage
    4.   Inventory
       items are
       ranked on the
       basis of
       Rupee usage
15. Which would be
    the most
    appropriate
    method of
    controlling stock
    in a hotel bar?
    1.   Periodic
       Review
    2.   Just-in-
       Time
    3.   Two-Bin
       System
    4.   Poke-Yoka
16. Which would be
    the most
    appropriate
    method of controlling stock
    in a retail shop?
    1.   Two-Bin
       System
    2.   Periodic
       Review
    3.   Materials
       Requirements
       Planning
    4.   Order Point
17. Under the ABC
    system of
    inventory
    priorities a Class
    A item is
    1.   The 80% of
       high-value
       items that
       account for
       around 80%
       the total
       stock value
    2.   The 20% of
       high-value
       items that
       account for
       around 80%
       the total stock
       value
    3.   The 20% of
       high-value
       items that
       account for
       around 20%
       the total stock
       value
    4.   The 80% of
       high-value
       items that
       account for
       around
       20% the
       total stock
       value
18. All of the
    following
    statements about
    ABC analysis are
    true except
    1.   inventory
       may be
       categorized
       by measures
       other than
       Rupee
       volume
    2.   it categorizes
       on-hand
       inventory into
       three groups
       based on
       annual Rupee
       volume
    3.   it is an
       application of
       the Pareto
       principle
    4.   it states that
       all items
       require the
       same
       degree of
       control
19. ABC analysis is
    based upon the
    principle that
    1.   all items in
       inventory
       must be
       monitored
       very closely
    2.   there are
       usually a few
       critical items,
       and many
       items which
       are less
       critical
    3.   an item is
       critical if its
       usage is high
    4.   the safety
       stock in
       terms of
       volume
       should be
       higher for
       A items
       than for
20. A disadvantage of
    the fixed-period
    inventory system
    is that
    1.   it involves
       higher
       ordering
       costs than
       the fixed
       quantity
       inventory
       system
    2.   additional
       inventory
       records are
       required
    3.   the average
       inventory
       level is
       decreased
    4.   since there
       is no count
       of
       inventory
       during the
       review
       period,a
       stockout is
       possible
21. Low Productivity
    affects one of the
    following
    1.   Quality of the
       Product
    2.   None of the
       above
    3.   delivery of the
       product
    4.   Features of the
       product