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Thursday, November 24, 2011

Materials Management Quiz - 3

1. No restrictions are on rail transport.
[A]TRUE
[B]FALSE



2. Inventory control technique is suited for low value indirect materials which are economical to procure them in certain pre fixed quantities.
[A]TRUE
[B]FALSE



3. Reorder quantity in fixed order interval system equal economic order quantity.
[A]TRUE
[B]FALSE



4. Continuous stock-taking tends to dislocate the working of store.
[A]TRUE
[B]FALSE



5. PO gives full and complete details of the materials to be supplied thereby avoiding ambiguities.
[A]TRUE
[B]FALSE



6. Two bin system is better as compared to perpetual inventory system.
[A]TRUE
[B]FALSE



7. EOQ model is based on the assumption that unit price is fixed.
[A]TRUE
[B]FALSE



8. Supplier's request for price increase should be analysed patiently by the buyer. A curt 'no' or 'negative' reply spoils relationships.
[A]TRUE
[B]FALSE



9. Materials department is service department.
[A]TRUE
[B]FALSE



10. Value analysis is necessary when company's profits soars.
[A]TRUE
[B]FALSE



11. Post parcel consignments are cleared through customs & clearance is done through foreign post office.
[A]TRUE
[B]FALSE



12. Number of free days allowed for air consignments is 15 days from the flight date.
[A]TRUE
[B]FALSE



13. The trade discount is not allowed as a percentage of published price.
[A]TRUE
[B]FALSE



14. Make or buy decision are of common concern to both materials and production department.
[A]TRUE
[B]FALSE



15. Ex-works means sale is made on rail/truck at the station of dispatch.
[A]TRUE
[B]FALSE



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