The cost of a particular plan for a given period can be computed by using which one of the following expressions?

• A) Output cost - hire(layoff cost) + inventory cost + backorder cost
• B) Output cost + hire(layoff cost) + inventory cost – backorder cost
• C) Output cost + hire(layoff cost) + inventory cost + backorder cost
• D) Output cost + hire(layoff cost) - inventory cost + backorder cost

What would be the total backorder cost if 100 units of a product ‘A’ are ordered back where the back order cost is Rs. 2 per unit?

• A) Rs. 98
• B) Rs. 200
• C) Rs. 50
• D) Rs. 102

Identify the mathematical expression to determine the number of workers in a given period.
Where a = Number of workers at the end of previous period, b = Number of new workers at the start of the current period, c = Number of laid-off workers at the start of the current period

• A) a + b - c
• B) a - b + c
• C) a - b - c
• D) a + b + c

Reduced space requirements, reduced inventory investment, and reduced lead times, are the benefits of which of the followings?

• A) Continuous improvement
• B) Re engineering
• C) Kanban
• D) Lean system

The key benefit of just in time inventory system lies in the

• A) Exposure of problems in the production/distribution system
• B) Increased overall inventory value
• C) Increased production rates
• D) Use of a pull rather than a push inventory system

In the manufacturing organizations the prerequisites for the implementation of JIT system are:

• A) Executive Commitment
• B) All of the given
• C) Strategic Manufacturing Plan
• D) A Reason for Changing, and Commitment to Action

What would be the total cost of inventory if a firm holds 1000 units of a product ‘A’, where the carrying cost is Rs. 5 per unit?

• A) Rs. 995
• B) Rs. 5000
• C) Rs. 200
• D) Rs. 1050

All of the following are determinants of reorder point EXCEPT:

• A) Stock out risk
• B) Rate of demand
• C) Lead time
• D) Setup cost

The concept of breaking up of the order and running part of it ahead of schedule is called

• A) Load report
• B) Overlapping
• C) Lot splitting
• D) Operations splitting

Which of the following shows the quantity and timing of specific end items for a scheduled horizon?

• A) Critical path model
• B) Master schedule
• C) Aggregate plan
• D) Simulation model

What would be the total cost of inventory if a firm holds 200 units of a product ‘A’,where the carrying cost is Rs. 2 per unit?

• A) Rs. 400
• B) Rs. 100
• C) Rs. 202
• D) Rs. 198

If the “holding cost” decreases, the EOQ will

• A) Remain the same
• B) Increase
• C) Decrease
• D) Change in an irregular pattern

An effective JIT effort should result in increased

• A) Queue time
• B) Quality
• C) Costs
• D) Delay time

Which of the following takes information from the Master Production Schedule to evaluate its feasibility?

• A) Material requirements plan
• B) Aggregate plan
• C) Capacity requirements plan
• D) Rough-cut capacity plan

The ultimate goal of rough-cut capacity planning is:

• A) Achieving efficiency in the processes
• B) Determining feasibility of a cost volume analysis
• C) Approximating inventory requirements
• D) Determining feasibility of a master schedule

Which of the following refers to the cost associated with the order of inventory and its receipt?

• A) Stock out cost
• B) Holding cost
• C) Ordering cost
• D) Shortage cost

Which of the following mathematical expressions can be used to compute total annual cost?

• A) (Q/2) H + (D/Q) S
• B) (Q/2) H - (D/Q) S
• C) (Q/2)S + (D/Q) H
• D) (Q/H) 2 + (D/Q) S

The main advantage of holding the inventory mainly in the manufacturing organizations is:

• A) Improved quality
• B) Material handling reduced
• C) Greater availability
• D) Reduced obsolescence

Identify the time span covered by aggregate planning.

• A) 2-12 months
• B) 2-10 months
• C) 3-7 months
• D) 4-8 months

Refer to the percentage of items in group A of ABC classification system for inventory management

• A) 50%
• B) 10%
• C) 30%
• D) 70%