1. Chapter 6

2. Economic Order Quantity (EOQ) provides _____ number of units to order. a.Minimum b.Maximum c.Optimum d.None of the above

3. Economic Order Quantity (EOQ) provides _____ number of units to order. a.Minimum b.Maximum c.Optimum d.None of the above

4. Cost associated with ordering and receiving goods: a.Procurement cost b.Inventory cost c.Holding cost d.None of the above

5. Cost associated with ordering and receiving goods: a.Procurement cost b.Inventory cost c.Holding cost d.None of the above

6. Holding cost is also known as : a.Receiving cost b.Carrying cost c.Producing cost d.Design cost

7. Holding cost is also known as : a.Receiving cost b.Carrying cost c.Producing cost d.Design cost

8. Procurement cost is obtained by plotting ______ against ordered quantity. a.Cost b.Investment c.Profit d.None of the above

9. Procurement cost is obtained by plotting ______ against ordered quantity. a.Cost b.Investment c.Profit d.None of the above

10. Purchasing is one of the function of ….. management a.Production b.Materials c.Design d.None of the above

11. Purchasing is one of the function of ….. management a.Production b.Materials c.Design d.None of the above

12. ……. means procuring goods and services. a.Purchasing b.Selling c.Inventory d.None

13. ……. means procuring goods and services. a.Purchasing b.Selling c.Inventory d.None

14. Which is not the cost concerned with EOQ? a.Procurement Cost b.Inventory Carrying Cost c.Total Cost d.Primary Cost

15. Which is not the cost concerned with EOQ? a.Procurement Cost b.Inventory Carrying Cost c.Total Cost d.Primary Cost

16. In a graphical method of EOQ the cost represented as straight line is: a.Procurement Cost b.Inventory Carrying Cost c.Total Cost d.None

17. In a graphical method of EOQ the cost represented as straight line is: a.Procurement Cost b.Inventory Carrying Cost c.Total Cost d.None

18. EOQ= ?

20. What is advantage of EOQ mode? a.Material is available quickly b.Effective utilization of inventory c.Both a and b d.None

21. What is advantage of EOQ mode? a.Material is available quickly b.Effective utilization of inventory c.Both a and b d.None

22. Why purchasing is required? a.To procure materials at lowest cost b.To maintain standards of quality c.Both a and b d.None

23. Calling quotations, order follow- up, material receiving, placing PO are the functions of a.Quality department b.Purchase department c.Inventory department d.Marketing department

24. Calling quotations, order follow-up, material receiving, placing PO are the functions of a.Quality department b.Purchase department c.Inventory department d.Marketing department

25. Which is the first step in purchasing? a.Decision for purchasing b.Material requisition c.Finalization of supplier d.Market analysis

26. Arrange the functions a.1-2-3-4-5-6 b.2-4-6-1-3-5 c.3-1-2-6-4-5 d.3-2-1-6-5-4 1.Decision of purchase 2.Market analysis of suppliers 3.Material requisition 4.Purchase order 5.Receive materials 6.Finalize supplier

27. Arrange the functions of purchasing a.1-2-3-4-5-6 b.2-4-6-1-3-5 c.3-1-2-6-4-5 d.3-2-1-6-5-4 1.Decision of purchase 2.Market analysis of suppliers 3.Material requisition 4.Purchase order 5.Receive materials 6.Finalize supplier

28. PO in materials management means? a.Purchase Order b.Post Office c.Placement Order d.None

29. PO in materials management means? a.Purchase Order b.Post Office c.Placement Order d.None

30. Following is not modern materials management technique. a.MRP b.ERP c.SAP d.5S

31. Following is not modern materials management technique. a.MRP b.ERP c.SAP d.5S

32. MRP in materials mgnt stands for- a.Maximum Retail Price b.Material Resource Planning c.Maximum Resource Planning d.None

33. MRP in materials mgnt stands for- a.Maximum Retail Price b.Material Resource Planning c.Maximum Resource Planning d.None

34. Which is the input to MRP? a.On hand Inventory b.Bill of material c.Both d.None

35. Which is the input to MRP? a.On hand Inventory b.Bill of material c.Both d.None

36. The …. Provides information about when to order and how much to order a.MRP b.ERP c.Inventory d.None

37. The …. Provides information about when to order and how much to order a.MRP b.ERP c.Inventory d.None

38. One of the functions of MRP: a.Forecast of materials requirement b.Reducing waste c.Economy in buying d.All of these

39. One of the functions of MRP: a.Forecast of materials requirement b.Reducing waste c.Economy in buying d.All of these

40. … is the relationship between demand for one item and demand for a higher level assembly. a.Independent demand b.Dependent demand c.MRP d.None of these

41. … is the relationship between demand for one item and demand for a higher level assembly. a.Independent demand b.Dependent demand c.MRP d.None of these

42. An example of an item of independent demand. a.Wheels for bike b.Tools c.Headlamps for car d.None of these

43. An example of an item of independent demand. a.Wheels for bike b.Tools c.Headlamps for car d.None of these

44. ERP Means- a.Enterprise Resource Planning b.Entry Restricted Products c.Energy Resource Products d.None

45. ERP Means- a.Enterprise Resource Planning b.Entry Restricted Products c.Energy Resource Products d.None

46. ____ uses all the resources in systematic way. a.MRP b.ERP c.MRP II d.None

47. ERP vendor is- a.SAP b.ORACLE c.PEOPLESOFT d.ALL

48. ERP vendor is- a.SAP b.ORACLE c.PEOPLESOFT d.ALL

49. List of ERP Modules a.ERP Finance Module b.ERP HR Module c.ERP Purchase Module d.ERP Production Module e.ERP Sales and Marketing Module f.ERP Inventory Module