Which of the following is a common feature of inventory models?

• A) Profit maximization
• B) Cost minimization
• C) Minimizing setup times
• D) Lead time minimization

Which one of the following refers to inventory turnover?

• A) A ratio of work in process to the average inventory investment
• B) A ratio of cost of carrying cost to the average inventory investment
• C) A ratio of cost of goods sold to the average inventory investment
• D) A ratio of cost of assets to the average inventory investment

Organizations following JIT philosophy require encouraging ________ concept between organization’s purchasing department, supplier, management and labor.

• A) Flexibility
• B) Re engineering
• C) Partnership
• D) Good housekeeping

Aggregate plans are updated

• A) Twice a year
• B) Periodically
• C) At project end
• D) Once a year

If a firm subcontracts 300 units of a product ‘A’, with the subcontracting cost of Rs. 3 per unit. What would be the total subcontracting cost?

• A) Rs. 297
• B) Rs. 900
• C) Rs. 100
• D) Rs. 303

Identify the set of factors that affect the choice of a strategy for aggregate planning.

• A) Cost and corporate profits
• B) Cost and location analysis
• C) Cost and training of employees
• D) Cost and capacity constraints

Which of the following is Not an assumption of economic order quantity model?

• A) No constraints on size of each lot
• B) No quantity discounts
• C) Demand is always variable
• D) No uncertainty in lead time or supply

There is no inventory buildup when:

• A) Usage and production rates are equal
• B) Orders are frequently placed
• C) Production rate exceeds usage rate
• D) Usage rate exceeds production rate

MPS stands for which of the following?

• A) Master Planning Schedule
• B) Material Production Schedule
• C) Material Planning Schedule
• D) Master Production Schedule

A rule of lot size that maintains the same order quantity each time an order is issued is known as

• A) Economic order quantity model
• B) Lot for lot ordering
• C) Part period model
• D) Fixed period ordering

Capacity options are usually of __________ range in nature

• A) Long
• B) Intermediate
• C) Periodical
• D) Short

Which of the following is not the distinctiveness of just in time suppliers?

• A) Short term contract agreements
• B) The purchaser actually helping the supplier to meet the quality requirements
• C) Scheduling inbound freight
• D) Minimal release paperwork

If a firm subcontracts 600 units of a product ‘A’, with the subcontracting cost of Rs. 6 per unit. What would be the total subcontracting cost?

• A) Rs. 3600
• B) Rs. 594
• C) Rs. 606
• D) Rs. 100

Which of the following mathematical expressions can be employed to compute backorder cost?

• A) Backorder cost per unit × number of backordered units
• B) Backorder cost per unit + number of backordered units
• C) Backorder cost per unit - number of backordered units
• D) Backorder cost per unit /number of backordered units

What does EOQ stand for in inventory management?

• A) Essential Order Quantity
• B) Economic Order Quantity
• C) Efficient Order Quantity
• D) Economic Organization Quantity

In employment stability, we have the following options except __________.

• A) Hold employment constant by maintaining the trained workforce
• B) Hold employment constant and labor is treated as a fixed cost
• C) All the options given
• D) Follow demand exactly

Which of the following inventory management strategies helps to reduce inventory levels and minimize inventory costs?

• A) Just-in-time (JIT)
• B) ABC Analysis
• C) LIFO
• D) FIFO

As per the Hawthorn studies, which of the following statements best describes about worker productivity?

• A) It increases when worker receive attention and feel valued.
• B) It is solely determined by physical working conditions.
• C) It is unaffected by social factors.
• D) It is higher in isolated work environments.

In which of the following method, the time standard for a job can be set in a laboratory away from the actual production operation.

• A) None of the options given
• B) Historical experience
• C) Time studies
• D) Predetermined time standards

While using time studies methods in labor standards and work measurement, we use ____________ and ______________ to calculate the standard time of a job.

• A) None of the options given
• B) Total Normal time and Allowance factor
• C) Allowance factor and TMU
• D) Total Normal time and TMU