Raw Materials and WIP can be classified under ____
a. Indirect Material
b. Direct Material
c. Finished Material
d. Standard Parts
Answer b.Direct Material
___ are the basic materials which have not undergone any conversion since their receipt from
suppliers.
a. WIP
b. Raw Material
c. Finished Parts
d. Work Made Parts
Answer b. Raw Material
Buying according to the requirements is called ____
a. Seasonal Buying
b. Hand to mouth buying
c. Scheduled Buying
d. Tender Buying
Answer b. Hand to mouth buying
Which is not a part of 5R’s of buying?
a. Right Quality
b. Right Quantity
c. Right Source
d. None of the above
Answer e. None of the above
The business cycle, price trends, National Economy is _____
a. Micro Factors
b. Macro Factors
c. Controllable Factors
d. None of the above
Answer b. Macro Factors
____ also called part lists or building lists is the document generated at the design stage.
a. MRP (Material Requirement Planning)
b. BOM (Bill of Materials)
c. MPS (Master Production Schedule)
d. None of the above
Answer b. BOM (Bill of Materials)
Purchasing responsibilities can be divided into Buying, Clerical and ____ division.
a. Packing
b. Traffic
c. Record
d. Follow up
Answer b. Traffic
The first activity of Purchasing cycle is _____
a. Communicating requirement to the purchase
b. Source Selection and development
c. Recognizing the need for procurement
d. Inspection of goods
Answer c. Recognizing the need for procurement
____ is the time that elapses between issuing replenishment order and receiving the material in
stores.
a. Replenishment time
b. Lead time
c. Idle-time
d. None of the above
Answer b. Lead time
___ is the scientific technique for planning the ordering and usage of materials at various levels of
production and for monitoring the stocks during these transactions.
a. MPS
b. MRP
c. BOM
d. None of the above
View Answer
b. MRP (Material Requirement Planning)
___ is the task of buying goods of the right quality, in the right quantities, at the right time and at the
right price.
a. Supplying
b. Purchasing
c. Scrutinizing
d. None of the above
Answer b. Purchasing
Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier
by the buyer.
a. Seasonal Buying
b. Hand to mouth buying
c. Scheduled Buying
d. Tender Buying
Answer c. Scheduled Buying
Buying of the annual requirements of an item during its season is called ___
a. Seasonal Buying
b. Hand to mouth buying
c. Scheduled Buying
d. Speculative Buying
Answer d. Speculative Buying
41 The near future holds ___ uncertainty than (as) the far future.
A more
B the same
C less
D all of the above
Answer: less
42 ______ is usually thought of as occurring on a yearly basis, but it can also occur on a weekly or
even daily basis.
A Random variation
B A trend
C A cycle
D Seasonality
Answer: Seasonality
43 _____ occurs when a customer's order is received.
A Order processing
B Demand management
C Forecasting
D Random variation
Answer: Order processing
44 Materials such as copper, coal, wheat, meat, and metals are:
A Commodities
B Standard products
C Items of small value
D Made-to-order items
Answer: Commodities
45 ___ is most often used in wholesale or retail businesses but is also used extensively in
manufacturing.
A Description by function
B Description by specification
C Description by buyer
D Description by brand
Answer: Description by brand
46 ____ is the systematic use of techniques that identify a required function, establish a value for
that function, and finally provide the function at the lowest overall cost.
A Functional analysis
B Value analysis
C Functional specifications
D None of the above
Answer: Value analysis
47 Storing inventory requires _______ and as inventory increases, so do these costs.
A space, workers, and equipment
B space and workers
C workers and equipment
D space and equipment
Answer: space, workers, and equipment