Chapter 6 Economic Order Quantity EOQ provides number

Chapter 6

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MRP in materials mgnt stands fora. Maximum Retail Price b. Material Resource Planning c. Maximum Resource Planning d. None

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

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

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

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

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

… 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

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

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

ERP Meansa. b. c. d. Enterprise Resource Planning Entry Restricted Products Energy Resource Products None

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

ERP vendor isa. SAP b. ORACLE c. PEOPLESOFT d. ALL

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