Quiz on Purchasing and Materials Management MCQ Question Answers

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Material Management and Purchase Management Quiz:

Ques. Regional factors for location planning include all of the following except:

(a) Raw materials

(b) Markets

(c) Labor considerations

(d) Attitudes

Ans. (d)

Ques. Life Cycle includes

(a) incubation

(b) growth

(c) maturity

(d) All the above

Ans. (d)

Ques. The major business functions consisting of research and development, product design, manufacturing, marketing, distribution, and customer service refer to:

(a) The transformation process

(b) Value chain

(c) Life cycle

(d) Quality control

Ans. (b)

Ques. The transportation method is a __ approach.

(a) Quantitative

(b) Qualitative

(c) Scientific

(d) All of the given options

Ans. (a)

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Ques. Which one of the following is focused on reducing the incidence of failures in the plant or equipment to avoid the associated costs?

(a) Preventive maintenance

(b) Predictive maintenance

(c) Reactive maintenance

(d) Total productive maintenance

Ans. (a)

Ques. A __ slows down the entire process when the workload is increased..

(a) Bottleneck

(b) Focus group

(c) Judgmental forecast

(d) Fast Track

Ans. (a)

Ques. __ represents the process of determining short-range capacity requirements.

(a) Capacity requirements planning

(b) Aggregate planning

(c) Capacity planning

(d) Schedule planning

Ans. (a)

Ques. Which one of the following is an example of site-related factors that affect location-decision?

(a) Transportation

(b) Quality of life

(c) Location of new markets

(d) Location of raw materials

Ans. (a)

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Ques. Repetitive processing results in output that is:

(a) Highly standardized

(b) Highly customized

(c) Partially customized

(d) None of the given options

Ans. (a)

Ques. __ is the examination of the function of parts and materials in an effort to reduce cost and/or improve product performance.

(a) Value analysis

(b) Associative model

(c) Focus group

(d) Judgmental forecast

Ans. (a)

Ques. In which of the following approaches, location decision is based on personal opinions and quantitative information?

(a) Factor rating

(b) Market area plant strategy

(c) Currency fluctuations

(d) Product plant strategy

Ans. (a)

Ques. Which of the following statements is true about effective capacity?

(a) It is the maximum output that a firm can produce

(b) It is always less than the actual output

(c) It is the actual output achieved

(d) It is always less than designed capacity

Ans. (c)

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Ques. Automation is preferred because it:

(a) Offers less dependence on workers

(b) Results in reduction in variable cost

(c) Offers easy handling of repetitive work

(d) All of the given options

Ans. (d)

Ques. Which of the following refers to the inherent variability in a process?

(a) Control limits

(b) Process capability

(c) Chance causes of variation

(d) Assignable causes of variation

Ans. (c)

Ques. Which one of the following is concerned with short-term capacity needs?

(a) Cycle

(b) Trends

(c) Seasonality

(d) Average

Ans. (c)

Ques. Which of the following represents a specified range of values into which individual units of output must fall in order to be acceptable?

(a) Tolerance

(b) Run test

(c) Process capability

(d) Process variability

Ans. (a)

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Ques. Material handling in the automobile industry is done by

(a) Trolley

(b) Belt Conveyer

(c) Overhead crane

(d) All of the above

Ans. (d)

Ques. Which of the following defines statements re-design?

(a) It is collecting information, identifying each step and finding inputs and outputs of the process.

(b) It is collecting information about cost reduction and improving the defects

(c) It relates with taking a fresh approach to solving an issue on hand.

(d) It relates to asking questions about process flow and identifying missing or duplicating activities.

Ans. (c)

Ques. __ is a standardized layout arranged according to a fixed sequence of assembly tasks.

(a) Assembly line

(b) Quantitative technique

(c) Focus group

(d) Fixed Position

Ans. (a)

Ques. Advantages of Process Layout Include

(a) Equipment used is less costly

(b) Low unit cost

(c) Low material handling cost

(d) Labor specialization

Ans. (c)

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