Industrial Engineering MCQ II Inventory control MCQ
When ordering cost is increased to 64 times,
EOQ will be increased to :
| (a) 2 times (b) 4 times (c) 8 times (d) Remains same |
| Ans : (c) |
| The break even point is obtained at the intersection of____ (a) the variable cost line and selling cost line (b) the total cost line and total sales line (c) the total cost line and the variable cost line (d) the variable cost line and the fixed cost line Ans. (b) |
| The fixed cost of producing a component is Rs. 2,00,000 per year and the variable cost is Rs.3.00. The selling price is Rs.30.00. The number of components to be produced to achieve break even is__ (a) 4700 (b) 3700 |
(c) 10000 (d) 7400
| 2,00,000/30 - 3 = 7407.4 |
| The main purpose of "Break Even Analysis' is to : (a) Decrease the cost of manufacturing (b) Increase profit margin on a product (c) Increase sales of an organization (d) Determine the minimum quantity that must be produced to earn profit Ans. (d) |
| A toy manufacturing factory has annual capacity of 12,000 toys. If the fixed costs are rupees 1 lach/year, variable cost rupees 20 per unit and the selling price rupees 40 per unit, the quantity to break-even is...........units. (a) 5000 (b) 300 (c) 2500 (d) None of these Ans. (a) |
| 1,00,000/ 40-20 = 5000 unit |
| In Break even analysis total cost consist of: |
| (a) Fixed cost (b) Variable cost (c) Fixed cost+Variable cost (d) Fixed cost + Variable cost + Profit Ans : (c) |
| Initial cost of making a product is 1,00,000 and variable cost per unit is 40. If its selling price is 80 per unit, what would be the break even quantity? (a) 2500 units (b) 3500 units (c) 5000 units (d) 7000 units/ Ans : (a) |
| Break-even point shows that (a) sales revenue > total cost (b) sales revenue < total cost (c) sales revenue = total cost (d) variable cost = fixed cost Ans. (c) |
| Break-even anlysis can be used for |
| (a) Short run analysis (b) Long run analysis (c) Average of above two run (d) There is no such criterion |
| Ans : (a) |
| The selling cost of a product is S and the variable cost of the product is V, then profit volume ratio is ___ |
(a) (S - V/S) (b) (V - S/V)
(c) (V - S)/V (d) (S - V)/V
| Ans. (a) |
| Break Even point represents (a) Profit (b) Loss (c) No profit and No Loss (d) None of these |
| Ans : (c) |
| Break-Even analysis consists of : (a) Fixed cost (b) Variable cost (c) Fixed and Variable cost |
| (d) Operation cost/mebÛeeueve ueeiele Ans : (c) |
| A manufacturer has three products A,B and C. The profit gained by selling these products is Rs.50, Rs.25 and Rs.60, respectively. What will be the objective function for the formulation of Linear Programming Problem ? |
Ans : (a) z = 50x1 + 25x2 + 60x3 |
| The J.I.T refers to : (a) Production control (b) Financial control (c) Cost control (d) Inventory control Ans : (d) |
| What do you mean by the term EOQ in an inventory control ? (a) Easily ordered quantity |
| (b) Easy and open quantity (c) Eco-friendly observed quality (d) Economic order quantity Ans : (d) |
| In ABC classification system of inventory management, ............group items have low level of safety stock. (a) A (b) B (c) C (d) Any of these Ans. (a) |
| In inventory control, the economic order quantity (EOQ) is the (a) optimum lot size (b) maximum size of inventory (c) corresponding to break-even point (d) none of the above Ans. (a) |
| In inventory management when the quantities needes over subsquent periods of time are known with certainity. What can this be called as ? (a) Lead demand (b) Probabilistic demand (c) Deterministic demand (d) Direct demand Ans : (c) |
| What is lead time in inventory management ? (a) The time taken by the manufacturer to prepare and send the bill of materials (BOM) to the vendor. (b) The time taken between the requisiton of an item and its delivery (c) The time required for the complete production of a finished product from raw material (d) The time taken by the manufacturer to pay the supplier for raw materials Ans : (c) |
| ABC analysis deals with (a) Analysis of process chart (b) Flow of metals (c) Ordering schedule of job (d) Control inventory costs money Ans : (d) |
| The application of control chart in industrial engineering is : (a) to control inventory (b) to schedule production |
| (c) for preventive maintenance (d) for material handling Ans : (a) |
| Which one of the following item gets the maximum attention in ABC inventory control technique? (a) Surplus items (b) More in demand items (c) Perishable in nature items (d) Costly items Ans. (d) |
| In perpetual inventory control, the material is checked as it reaches its (a) Minimum value (b) Maximum value (c) Average value (d) Middle value |
Ans : (a)
| In ABC analysis, A-type inventory represents (a) High value, High volume (b) High value, Low volume (c) Low value, Low volume (d) Low value, High volume |
| Ans : (b) |
| Which of the following is not significant in determination of economic order quantity in inventory control? (a) Ordering cost (b) Lead time (c) Inventory carrying cost (d) All of these Ans : (b) |
In inventory control, the economic order
quantity is the
| (a) Optimum lot size (b) Highest level of inventory (c) Capability of plant to produce (d) None of these Ans : (a) |
| Percent idle time for men and machines is found by: (a) time study (b) analytical sampling (c) analytical estimating (d) ABC analysis Ans : (b) |