1).

By codification:
A. cost is reduced B. classification of materials is done
C. both of the above D. none of the above Correct Answer: C

2). The normal operating cycle is inflow of raw materials ,___, conservation and warehousing.
A. Storage
B. Maintenance and safety Correct Answer: A

3). in a few organizations, the_____is also represented at the Board level.
A. Materials B. HR
C. Finance D. Sales Correct Answer: A

4). In a few traditional approaches, ___is under production or finance.
A. Sales B. Materials
C. Design D. HR Correct Answer: B

5). Alphanumerical codes are:
A. better B. obsolete
C. difficult to identify D. none of the above Correct Answer: A

6). By codification, ___ can be monitored.
A. materials movement B. people management
C. production planning D. quality control Correct Answer: A

7). _______ situation involves repetitive situations.
A. Real - life practical B. Theoretical
C. Both of the above D. None of the above Correct Answer: A

8). Every purchase order is a commitment of company funds.
A. TRUE
B. FALSE Correct Answer: A

9). Dynamic risk factor leads to change in:
A. Consumption B. lead-time
C. both of the above D. none of the above Correct Answer: C

10). Inventory costs money to _____.
A. acquire B. hold
C. both of the above D. none of the above Correct Answer: C

11). Scarce, Difficult and Easy to obtain are used in SDE Analysis.
A. TRUE
B. FALSE Correct Answer: A

12). The 70% of the materials contribute to ___ of consumption.
A. 10% B. 5%
C. 70% D. None of the above Correct Answer: A


13). ____ cost is incurred when an item is not available.
A. Stockout B. Holding
C. Procurement D. None of the above Correct Answer: A

14). RAM is:
A. Reliability, Adaptability, Maintanability
B. Reliability, Availability, Maintainability
C. Reliability, Availability, Measurability
D. None of the above Correct Answer: B

15). By HML we can classify materials as:
A. High consumption value B. Low consumption value
C. Both of the above D. None of the above Correct Answer: C

16). Acquisition cost increased is carrying cost reduced.
A. TRUE
B. FALSE Correct Answer: A

17). SOS Stands for Seasonal and Off-seasonal.
A. TRUE
B. FALSE Correct Answer: A

18). A pin can be called:
A. pin hinge B. pivot
C. spindle D. all of the above Correct Answer: D

19). Dynamic risk factor leads to change in:
A. demand B. lead-time
C. both of the above D. none of the above Correct Answer: C

20). In the centralized set-up:
A. discounting plays the major role
B. there is standardization of policies
C. lead-time is increased
D. all of the above Correct Answer: D

21). EOQ helps find the solution for:
A. conflicting views
B. converging views
C. both of the above
D. none of the above Correct Answer: A

22). By HML we can classify materials as:
A. High consumption value B. Low consumption value
C. Both of the above D. None of the above Correct Answer: C

23). Inventory is _______.
A. unrealized money B. liability
C. both of the above D. None of the above Correct Answer: A
24). Codification is done to segregate.
A. TRUE
B. FALSE Correct Answer: A

25). Effective inventory manager ensures ______at optimum cost.
A. adequate supplies B. maximum supply
C. both of the above D. none of the above Correct Answer: A

26). Inventory has ________.
A. economic value B. non-economic value
C. no value D. none of the above Correct Answer: A

27). An important way of classification is by finding usage.
A. TRUE
B. FALSE Correct Answer: A

28). Inventory is often defined as '_______'.
A. idle resource of any kind B. liability to the company
C. both of the above D. none of the above Correct Answer: A

29). EOQ is:
A. Economic Order Quantity
B. Economic Order Quality
C. both of the above
D. none of the above Correct Answer: A

30). EOQ serves to address:
A. quantity to order B. when to order
C. both of the above D. none of the above Correct Answer: A

31). _______ situation involves repetitive situations.
A. Real - life practical B. Theoretical
C. Both of the above D. None of the above Correct Answer: A

32). Any component constituting the purchase bill reduced by 5%, significantly affects:
A. profitability B. cost
C. capability D. list Correct Answer: A

33). All items in factory can be grouped into:
A. Consumption value B. Availability
C. Criticality D. all of the above Correct Answer: D

34). The right quantity satisfies the conflicting views of:
A. too much/ too little
B. minimum total cost / increased profitability
C. both of the above
D. none of the above Correct Answer: C


35). The efficient materials manager ensures that:
A. stocks are at an optimum level B. there are no stockouts
C. both of the above D. none of the above Correct Answer: C

36). While future is uncertain, _________ report the events of the past.
A. accountants B. managers
C. directors D. none of the above Correct Answer: A

37). X and N category is taken into account while identifying obsolescence.
A. TRUE
B. FALSE Correct Answer: A

38). Inventory system addresses:
A. When to order? B. What quantity to order?
C. Both of the above D. None of the above Correct Answer: C

39). All items in factory can be grouped into:
A. Consumption value B. Availability
C. Criticality D. all of the above Correct Answer: D

40). EOQ is:
A. Economic Order Quantity
B. Economic Order Quality
C. both of the above
D. none of the above Correct Answer: A

41). In the external interface:
A. materials department rates the supplier
B. the supplier rates the buyer
C. both of the above
D. none of the above Correct Answer: C

42). Inventory system addresses:
A. When to order? B. What quantity to order?
C. Both of the above D. None of the above Correct Answer: C

43). Codification is also useful in ______.
A. determining price B. determining value
C. tracking the material D. all of the above Correct Answer: D

44). The government entities buy materials by____.
A. Weakness & Failure B. Strength & Success
C. Health & Wealth D. Tenders Correct Answer: D

45. Role of _______ manager in materials management is incomplete without audit in purchase.
A. Finance and Production B. HR
C. Marketing D. None of the above Correct Answer: A


46). The placement of materials department in organization structure depends on
A. Volume of purchase B. Type of industry
C. Variety of purchase D. All of the above Correct Answer: D

47. Trading deliberation leading to an argument is
A. Concurrence B. Bargaining
C. Agreement D. Negotiation Correct Answer: D

48). Materials manager identifies:
A. critical items B. non-critical items
C. both of the above D. none of the above Correct Answer: C

49). The British system of coding is applied in three phases and contains
A. 7 digits B. 8 digits
C. 5 digits D. none of the above Correct Answer: A

50). The basic objective of inventory management is to determine ________.
A. right quantity to be procured
B. right quality to be procured
C. both of the above
D. none of the above Correct Answer: A

51). The barcode is a/an _______acceptable system.
A. locally B. universally
C. regionally D. all of the above Correct Answer: B

52). The Materials Manager has to interface with
A. External source and production B. Stores and production
C. Both of the above D. None of the above Correct Answer: C

52). The materials department extensively mediates between:
A. type of industry B. variety of purchase
C. volume of purchase D. all of the above Correct Answer: D

53). Which of the following is not an area to be covered during negotiation
A. Price reversions
B. Price, terms and conditions of contract
C. Arbitration, adjudication, disputes, etc.
D. Manufacturing process, quality control, etc. Approach Correct Answer: D

54). The exact cut-offs of ABC are determined by:
A. sales manager B. production manager
C. Materials Manager D. none of the above Correct Answer: C

55). Spear Supplier Evaluation for vendors was developed by
A. Boeing Company B. IBM
C. G.E, USA D. Bell Helicopter Correct Answer: A


56). The materials department extensively mediates between:
A. Finance and Production B. HR and Marketing
C. Finance and Sales D. None of the above Correct Answer: A

57). RAM is:
A. Reliability, Adaptability, Maintainability
B. Reliability, Availability, Maintainability
C. Reliability, Availability, Measurability
D. None of the above Correct Answer: B

58). The _______ purchaser does not consume the product but sells to others.
A. bad B. ugly
C. middleman D. none of the above Correct Answer: C

59). The materials department extensively mediates between:
A. Vital, Essential, Desirable B. Vital, Essential, Difficult to obtain
C. Vital, Estimated, Desirable D. None of the above Correct Answer: A

60). Materials is ________in the form of goods.
A. Asset B. money
C. both of the above D. none of the above Correct Answer: B

61). Selective control regulates through:
A. a few critical items B. all items
C. only non-critical items D. none of the above Correct Answer: A

62). Out of various centers in an organization, materials department falls under:
A. Cost center B. Profit center
C. Activity Centre D. None of the above Correct Answer: B

63). The Bill of Lading is:-
A. Contract between shipper and exporter of the good
B. Contract between shipper and carrier for transportation
C. Contract between exporter and carrier for transportation
D. Contract between importer and exporter of the good Correct Answer: B

64). The materials department extensively mediates between:
A. too much/ too little B. minimum total cost / increased profitability
C. both of the above D. none of the above Correct Answer: C

65). The materials department extensively mediates between:
A. Stores and Production B. External sources and Production
C. Both of the above D. None of the above Correct Answer: C

66). Materials manager identifies:
A. critical items B. non-critical items
C. both of the above D. none of the above Correct Answer: C


67). The materials department extensively mediates between:
A. does not adopt a scientific practice B. becomes a middleman
C. both of the above D. none of the above Correct Answer: A

68). The materials department extensively mediates between:
A. retailers B. distributors
C. manufacturers D. none of the above Correct Answer: C

69). Settlement of bills is difficult when the _____ market is tight.
A. money B. capital
C. share D. none of the above Correct Answer: A

70). The materials department extensively mediates between:
A. Storage
B. Maintenance and safety Correct Answer: A

71). The materials department extensively mediates between:
A. Budgets B. guidelines
C. both of the above D. none of the above Correct Answer: A

72). Out of various centers in an organization, materials department falls under:
A. Cost center B. Profit center
C. Activity Centre D. None of the above Correct Answer: B

73). The materials department extensively mediates between:
A. rapport B. relations
C. standards D. final consumers Correct Answer: D

74). Top management usually sets _______ for investment in inventories
A. Budgets B. Guidelines
C. Both of the above D. None of the above Correct Answer: C

75). The third dimension in MUSIC-3D analysis apart from availability and consumption value is
A. Complexity B. Necessity
C. Criticality D. Utilization Correct Answer: C

76). Materials department accounts for major_____.
A. cash inflow B. company profits
C. cash outflow D. none of the above Correct Answer: C

77). The materials department extensively mediates between:
A. catalyst B. middleman
C. general manager D. none of the above Correct Answer: A

78). Some people use ______ analysis as a method of controlling the high prices items.
A. HML B. GOLF C. FSN D. None of the above Correct Answer: A



79). The integrated approach takes into account:
A. inventory control and planning B. cost reduction and transportation
C. value engineering D. all of the above Correct Answer: D

80). Inspection is done to determine the grade of material.
A. TRUE
B. FALSE Correct Answer: A

81). Operational audit is a comprehensive and a constructive review.
A. TRUE
B. FALSE Correct Answer: A

82). VEIN is Vital, Essential, Important, and Normal equipment.
A. TRUE
B. FALSE Correct Answer: A

83). The efficient materials manager ensures that:
A. stocks are at an optimum level B. there are no stock outs
C. both of the above D. none of the above Correct Answer: C

84). Codification is also useful in _______.
A. cutting down the lead time B. easy recognition of items
C. avoiding long cumbersome names D. all of the above Correct Answer: D

85). Settlement of bills is difficult when the _____ market is tight.
A. money B. capital
C. share D. none of the above Correct Answer: A

86). Materials department accounts for major_____.
A. cash inflow B. company profits
C. cash outflow D. none of the above Correct Answer: C

87). Color coding is also a type of coding.
A. TRUE
B. FALSE Correct Answer: A

88). EOQ helps find the solution for:
A. conflicting views B. converging views
C. both of the above D. none of the above Correct Answer: A

89). HCV/LCV, Long Lead Time/ Short Lead Time, Critical /Non-Critical analysis is called:
A. Music - 3D B. Music- 2D
C. Both of the above D. None of the above Correct Answer: A

90). In the external interface:
A. materials department rates the supplier B. the supplier rates the buyer
C. both of the above D. none of the above Correct Answer: C


91). By HML we can classify materials as:
A. High consumption value B. Low consumption value
C. Both of the above D. None of the above Correct Answer: C

92). _______ cost includes cost of freight, insurance and inspection.
A. Acquisition B. Holding
C. Stock out D. None of the above Correct Answer: A

93). XYZ is based on yearend stores inventory. Correct Answer : A. TRUE

94). The right quantity satisfies the conflicting views of:
A. too much/ too little B. minimum total cost / increased profitability
C. both of the above D. none of the above Correct Answer: C

95). ABC approach is based on:
A. production value B. process variance
C. annual consumption D. none of the above Correct Answer: C

96). EOQ is:
A. Economic Order Quantity B. Economic Order Quality
C. both of the above D. none of the above Correct Answer: A

97). Inventory system addresses:
A. When to order? B. What quantity to order?
C. Both of the above D. None of the above Correct Answer: C

98). Codification is done to segregate.
A. TRUE
B. FALSE Correct Answer: A

99). All items in factory can be grouped into:
A. Consumption value B. Availability
C. Criticality D. all of the above Correct Answer: D

100). Inventory costs money to _____.
A. acquire B. hold
C. both of the above D. none of the above Correct Answer: C

101). Finance manager is wary of servicing ____ at 30% per cent per annum.
A. idle working capital B. idle fixed capital
C. both of the above D. none of the above Correct Answer: A

102). Inventory is _______.
A. unrealized money B. liability
C. both of the above D. None of the above Correct Answer: A

103). In a few traditional approaches, ___is under production or finance.
A. Sales B. Materials
C. Design D. HR Correct Answer: B
104). Effective inventory manager ensures ______at optimum cost.
A. adequate supplies B. maximum supply
C. both of the above D. none of the above Correct Answer: A

105). Holding cost is __of the stored finished goods.
A. 17.5% B. 40%
C. 10% D. None of the above Correct Answer: A

106). Inventory is often defined as '_______'.
A. idle resource of any kind B. liability to the company
C. both of the above D. none of the above Correct Answer: A

107). EOQ serves to address:
A. quantity to order B. when to order
C. both of the above D. none of the above Correct Answer: A

108). The basic objective of inventory management is to determine ________.
A. right quantity to be procured B. right quality to be procured
C. both of the above D. none of the above Correct Answer: A

109). All items in factory can be grouped into:
A. Consumption value B. Availability
C. Criticality D. all of the above Correct Answer: D

110). Complementing the operating cycle is _______, when materials are purchased, converted and stored as the cost of materials.
A. money outflow B. money inflow
C. no movement of money D. none of the above Correct Answer: A

111). It is found that 10% of materials contribute to _______ of consumption value.
A. 50% B. 60% C. 70% D. 90% Correct Answer: C

112). 10%, 20% and 70% of materials correspond respectively to ___ analysis of classification.
A. CAB B. BAC C. ABC D. All of the above Correct Answer: C

113). EOQ serves to address:
A. quantity to order B. when to order
C. both of the above D. none of the above Correct Answer: A

114). Inventory has ________.
A. economic value B. non-economic value
C. no value D. none of the above Correct Answer: A

115). Dynamic risk factor leads to change in:
A. demand B. lead-time
C. both of the above D. none of the above Correct Answer: C

116). Codification leads to:
A. reduced workload B. increased manufacturing time
C. increased lead-time D. none of the above Correct Answer: A