_______ is the demand that occurs because the quantity required is a function of the demand for other items held in inventory

• A) Scheduled demand
• B) None of the above
• C) Dependent demand
• D) Independent demand

Which of the following is TRUE about a periodic review?

• A) Ordering inventory at a fixed and regular time interval
• B) Ordering inventory at a predetermined re-order level
• C) Ordering inventory to supplier as per requirement
• D) Ordering inventory when it falls below the safety stock level

Which of the following is NOT an assumption of EOQ model?

• A) Annual demand requirements are known
• B) Multiple products are involved
• C) Delivery lead time does not vary
• D) There are no quantity discounts

What would be the total backorder cost if 800 units of a product ‘A’ are ordered back where the back order cost is Rs. 8 per unit?

• A) Rs. 792
• B) Rs. 100
• C) Rs. 6400
• D) Rs. 808

Which of the following is NOT a secondary report of MRP?

• A) Exception reports
• B) Lead reports
• C) Planning report
• D) Performance control report

Which of the following is not among a JIT inventory tactic?

• A) Reduction in variability
• B) Consistently receive and store deliveries at the same point in the warehouse
• C) Reduction in setup time
• D) Reduction in lot size

Which of the followings can be considered as true for the JIT philosophy?

• A) JIT is also known as lean production
• B) JIT operates with very little “fat”
• C) JIT is the true pull (demand) system
• D) All of the given

Which of the following is an advantage of perpetual inventory system?

• A) Fixed order quantity
• B) Economies in shipping orders
• C) Low cost of record keeping
• D) Periodic review of inventory

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

• A) D+Q+S
• B) (D/S)Q
• C) (D+Q)S
• D) (D/Q)S

Which of the following factors are important for choosing a strategy for aggregate planning?

• A) Company policy and layout decision
• B) Company policy and capacity options
• C) Cost and company policy
• D) Cost and layout decision

Which of the following is one of the inputs of MRP?

• A) Master schedule plan
• B) Bills of records
• C) Planned orders
• D) Inventory schedule plan

Series of time intervals during which order changes are allowed or restricted is known as:

• A) Capacity requirements planning
• B) Closed-loop MRP
• C) Time fences
• D) Load reports

Which of the following is Not a requirement for effective inventory management?

• A) Forecast of demand
• B) Determination of suppliers
• C) Knowledge of lead time
• D) Classification system

Which of the followings is not the requirement of MRP?

• A) Bills of materials
• B) Lot sizing
• C) Master schedules
• D) Accurate and up-to-date

When operations manager focuses on their organization’s competitive advantage they aim for consistent quality with reductions in inventory and:

• A) Employee motivation
• B) Flexibility
• C) Low cost of production
• D) Decreases in productivity

Key lean manufacturing principles include:

• A) Continuous improvement
• B) Waste minimization
• C) All of the given
• D) Pull processing

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