Operations & Supply Chain Management | Chapter 4 | Part 3 | MBA MCQs | OSM

Operations and Supply Chain Management MCQs

  

 

1. Deterioration and obsolescence cost comes under
   1.   Inventory carrying cost
   2.   Set up cost
   3.   Procurement cost
   4.   Stock out cost
2. ______________ type of inventory provides buffer between successive operations
   1.   Anticipation inventory
   2.   Cyclic inventory
   3.   Pipeline inventory
   4.   Decoupling inventory
3. _____________ type of inventory avoid stock outs
   1.   Safety stock
   2.   Cyclic inventory
   3.   Pipeline inventory
   4.   Decoupling inventory
4. ____________ type of inventory satisfies periods of seasonal high demand
   1.   Safety stock
   2.   Decoupling inventory
   3.   Pipeline inventory
   4.   Seasonal inventory
5. ____________ type of inventory minimizes the total cost by ordering the EOQ
   1.   Anticipation inventory
   2.   Cyclic inventory
   3.   Pipeline inventory
   4.   Decoupling inventory
6. Inventory in an organization should be
   1.   minimum
   2.   optimum
   3.   maximum
   4.   None of the above
7. As the order quantity increases, this cost will reduce
   1.   Ordering cost
   2.   Insurance cost
   3.   Inventory carrying cost
   4.   Stock out cost
8. ___________ type of inventory acts as a buffer between various elements of the supply chain
   1.   Anticipation inventory
   2.   Cyclic inventory
   3.   Pipeline inventory
   4.   Decoupling inventory
9. Extra units that are held in inventory to reduce stock outs are called
   1.   Safety stock
   2.   Just in time inventory
   3.   Demand variance
   4.   Re-order point
10. The elements of stock out cost are
    1.   Cost of men & machine rendered idle
    2.   All of the above
    3.   Cost due to overtime paid
    4.   Cost due to loss of business
11. As the volume of inventory increases, the following cost will increase
    1.   Stock out cost
    2.   Ordering cost
    3.   Procuring cost
    4.   Inventory carrying cost
12. ABC Classification is based on
    1.   Criticality of items
    2.   Inventory value of items at the year end
    3.   None of the two
13. VED classification made on
    1.   Market availability
    2.   Annual consumption value of item
    3.   Criticality of items
    4.   None
14. Which technique helps us to identify obsolete items
    1.   ABC Analysis
    2.   Movement analysis
    3.   FGH analysis
    4.   XYZ analysis
15. If you take delivery from railways at a later date than prescribed the penalty
    imposed on is known as
    1.   Wharfage charge
    2.   Obsolete chargee
    3.   Demurrage charge
    4.   Negligent charge
16. Valuation of financial year closing of stocks is known as
    1.   ABC analysis
    2.   XYZ analysis
    3.   Stock analysis
    4.   None of the above
17. Inventory is a term related to Contracts Management.
    1.   Yes
    2.   No
    3.   Cant say
    4.   It depends
18. The time that lapses between raising of purchase requisition by user departments
    or stores and receipt and acceptance of materials at stores for issue to user
    departments is known as
    1.   Lead time
    2.   Running time
    3.   Time gap analysis
    4.   None of these
19. Find the odd one out
    1.   ABC analysis
    2.   XYZ analysis
    3.   VED analysis
    4.   Work to Permit
20. CX items are those items whose available stock is exceeding
    1.   15 years consumption
    2.   There is no such item known as CX
    3.   10 years consumption
    4.   5 years consumption