Inventory control mcq IIindustrial engineering mcq II JE Mechanical
| Identify the method which is not a LPP technique : (a) Graphical method (b) Transportation problem (c) Simplex method (d) ABC analysis Ans : (d) |
| Breakeven analysis consists of: (a) Fixed cost (b) Variable cost (c) Fixed and variable costs (d) Operation costs |
| Ans : (c) |
| In breakeven analysis, total cost consist of: (a) Fixed cost (b) Variable cost (c) Fixed + variable costs (d) Fixed cost + variable cost + over-heads cost |
| Ans : (c) |
| Inventory can be in the form of : (a) Raw materials (b) In process goods (c) Brought out part, semi finished goods and subassemblies (d) All of the above Ans : (d) |
| Two groups of costs in inventory control are: (a) Carrying costs and ordering costs (b) Relevant costs and ordering costs (c) Carrying costs and total costs (d) Relevant costs and total costs |
| Ans : (a) |
In basic economic order quantity model flour
the optimal order quantity,
| (a) Holding cost is more than ordering cos (b) Holding cost is less than ordering cost (c) Holding cost equal to ordering cost (d) Holding cost is two times the ordering cost Ans : (c) |
The formula for economic order quantity does
not contain:
| (a) Order cost (b) Carrying cost (c) Cost of the item (d) Annual demand Ans : (c) |
When order quantity increases the ordering
costs will:
| (a) Increase (b) Decrease
inventory is to:
 |
| Ans : (c) |
| Which of the following is not a part of inventory Carrying cost? (a) Cost of storage space (b) Cost of obsolescence (c) Cost of insurance (d) Cost of inwards goods inspection Ans : (d) |
| Set-up costs do not include: |
| (a) Labour cost of setting up machines (b) Ordering cost of raw material (c) Maintenace cost of the machines (d) Cost of processing the work piece Ans : (c) |
items:
(a) Low consumption value (b) Low control (c) Bulk ordering (d) Accurate forecasting for material planning |
| Ans : (b) |
| In the basic EOQ model, if demand is Rs. 60 per months. Ordering cost is Rs. 12 per order, holding cost is Rs. 10 per unit per month, what is the EOQ? |
(c) 24 (d) 28
| Ans : (a) |
| ABC analysis deals with: (a) Analysis of process chart (b) Flow of materials (c) Ordering schedules of job (d) Controlling inventory cost Ans :(d) |
In ABC analysis of inventory control 'A' items
have:
| (a) Very high cost (b) Intermediate cost (c) Low cost (d) Very low cost |
| Ans : (a) |
The following is the general policy for A class
items in ABC analysis:
| 1. Very strict control 2. Frequent review of their consumption 3. Safety stock kept Which of the above statements is/are correct? (a) 1 Only (b) 1 & 2 Only (c) 2 Only (d) 1, 2 & 3 Ans : (d) |
If item cost, inventory carrying cost, ordering
cost and demand get doubled, what is the ratio of modified economic order quantity (EOQ) and the present EOQ?
(a) square root 2 (b) 2
(c) 4 (d) 8
| Ans : (a) |
| A purchasing assistant has calculated the annual carrying cost for an item to be Rs. 4/ annum. EOQ worked out is 500 units. What is the annual ordering cost for the item? |
(a) Rs. 125 (b) Rs. 500
(c) Rs. 1000 (d) Rs. 2000
| Ans : (c) |
times for an activity are 5days, 2days and 1days respectively. Assuming Beta distribution, the expected duration of the activity is:
(a) 3 days (b) 3.5 days
(c) 4 days (d) 5 days
| Ans : (a) |
| If the earliest starting time for an activity is 8 weeks, the latest finish time is 37 weeks and the duration time of the activity is 11 weeks, then the total float is equal to: |
| (a) 18 weeks (b) 14 weeks (c) 56 weeks (d) 40 weeks Ans : (a) |
| = Lj – Ei – tij = 37–8–11 = 18 |
| EDD (Earliest Due Date) sequencing of jobs in a single facility would. (a) Minimize mean flow time (b) Minimize the mean lateness (c) Minimize the maximum tardiness (d) Minimize the mean tardiness Ans : (c) |
| ABC analysis in materials management is a method of classifying the inventories based on (a) The value of annual usage of the items (b) Economic order quantity (c) Volume of material consumption (d) Quantity of materials used Ans. (a) |
| In A-B-C control policy, maximum attention is given to (a) those items which consume money (b) those items which are not readily available (c) those items which are in more demand (d) those items which consume more money |
| Ans : (d) |
| Consider the following statements: 1. ABC analysis is based on Pareto's principle 2. FIFO and LIFO policies can be used for material valuation in materials management. 3. Simulation can be l1sed for inventory control. 4. EOQ (Economic Order Quantity) formula ignores variations in demand pattern.
(b) 1 and 3 are correct (c) 2, 3 and 4 are correct (d) 1, 2, 3 and 4 are correct | |
| Ans. (d) : |
| Which one of the following is correct? In the basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will: (a) Double (b) Decrease by a factor of two (c) Remain the same (d) The data is insufficient to find EOQ Model Ans. (c) |
In the EOQ model, if the unit ordering cost is
doubled, the EOQ
| (a) Is halved (b) Is doubled (c) Increases 1.414 times (d) Decreases 1.414 times
which the cost of carrying is:
(c) 24 (d) 28
(c) Peripheral (d) ABC
(a) achieving optimisation (b) ensuring against market fluctuations (c) acceptable customer service at low capital investment in inventory (d) discounts allowed in bulk purchase Ans : (c) |
| In the perpetual inventory control, the material is checked when it reaches its |
(a) minimum value
(b) maximum value
(c) average value
(d) original value
Ans : (a)