MCQ on Materials and Logistics Management 3

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Objective Questions and Answers of MBA: MCQ on Materials and Logistics Management 3

Subject: MCQ on Materials and Logistics Management 3

Part 3: List for questions and answers of Materials and Logistics Management


Q1. The sides, ends, legs, and tops of tables are ________ demand items

a) dependent

b) Independent

c) Forecast

d) Calculated


Q2. Since _______ demand is not related to the demand for any other assemblies or products, it must be ___________

a) Dependent, forecast

b) Dependent, calculated

c) Independent, forecast

d) independent, calculated


Q3. All major inputs to the MRP system include

a) Master production schedule and bill of material

b) Bill of material and inventory records

c) Inventory records and master production schedule

d) Master production schedule, inventory records, and bills of material


Q4. The ___________ is a statement of which end items are to be produced, their quantity, and the dates they are to be completed

a) MRP

b) MPS

c) Inventory record

d) Bill of materials


Q5. The bill of materials shows all the parts required to make __________

a) one item

b) The MPR

c) Work-in-process inventory

d) Raw materials inventory


Q6. ___________ include hand tools, spare parts, lubricants, and cleaning supplies

a) Raw materials

b) Work-in-process

c) Finished goods

d) MRO supplies 


Q7. Inventory serves as a buffer between

a) Supply and demand

b) Finished goods and component availability

c) Customer demand and finished goods

d) All of the above


Q8. __________ inventory is held to cover random unpredictable changes in supply and demand or lead time

a) Anticipation

b) Fluctuation

c) Lot-size

d) Transportation


Q9. _______is a measure of customer service

a) Percentage of orders shipped on schedule

b) Percentage of line items shipped on schedule

c) Order-days out of stock

d) All of the above


Q10. Storing inventory requires ___________________ and as inventory increases, so do these costs

a) Space and workers

b) Workers and equipment

c) Space and equipment

d) space, workers, and equipment


Q11. Liabilities are obligations or amounts owed by a company and include

a) Accounts payable

b) Wages payable

c) Long-term debt

d) All of the above


Q12. The risks in carrying inventory are

a) Obsolescence and damage

b) Damage and pilferage

c) Pilferage and deterioration

d) Obsolescence, damage, pilferage, and deterioration 


Q13. ________ is the costs incurred in the process of making revenue

a) Income

b) Cost of goods sold

c) Expenses

d) Retained earnings


Q14. A(n) _____________ lists all the parts needed to make one complete assembly

a) summarized parts list

b) Indented bill

c) Multilevel bill

d) Single-level bill


Q15. ___________ is the process of multiplying the requirements by the usage quantity and recording the appropriate requirements throughout the product tree

a) Offsetting

b) Planning orders

c) Lead time

d) Exploding


Q16. _______________ means that authorization is given to purchasing to buy the necessary material or to manufacturing to make the component

a) Planned order release

b) Releasing an order

c) Scheduled receipts

d) Open orders


Q17. ____________ are orders placed on manufacturing or on a vendor and represent a commitment to make or buy

a) Planned order releases

b) Releasing orders

c) Scheduled receipts

d) Open orders


Q18. ______________involves long-range capacity resource requirements and is directly linked to production planning

a) Resource planning

b) MRP

c) Capacity requirements planning

d) Rough-cut capacity planning 


Q19. Which of the following is true for supply chain management?

a) The physical material moves in the direction of the end of chain

b) Flow of cash backwards through the chain

c) Exchange of information moves in both the direction

d) All of the above


Q20. Resource planning involves changes in staffing, capital equipment, product design, or other facilities that take a ________ time to ___________

a) Short, acquire and eliminate

b) long, acquire and eliminate

c) Short, utilize and change

d) Long, utilize and change


Part 3: List for questions and answers of Materials and Logistics Management


Q1. Answer: a

Q2. Answer: d

Q3. Answer: d

Q4. Answer: b

Q5. Answer: a

Q6. Answer: d

Q7. Answer: d

Q8. Answer: b

Q9. Answer: d

Q10. Answer: d

Q11. Answer: d

Q12. Answer: d

Q13. Answer: c

Q14. Answer: a

Q15. Answer: d

Q16. Answer: b

Q17. Answer: c

Q18. Answer: a

Q19. Answer: d

Q20. Answer: b