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Material Management MCQs | Material Management Multiple Choice Questions with Answers

61 In purchasing an item or service from a supplier, which factor is not included when specifications are being developed?
[A] Quantity requirements
[B] Price requirements
[C] Delivery requirement
[D] Functional requirement
Answer: Delivery requirement
62 Buying of the annual requirements of an item during its season.
[A] Speculative Buying
[B] Seasonal Buying
[C] Hand to mouth buying
[D] Tender Buying
Answer: Speculative Buying

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63 Finance must keep investment and costs low. This can be done by___________
[A] Decreasing the number of plants and warehouses
[B] Producing small quantities
[C] Increasing inventory so inventory investment is at a maximum
[D] Using short production runs
Answer: Decreasing the number of plants and warehouses
64 It is possible to increase the available capacity by:
[A] Limiting subcontracting
[B] Using fewer workers
[C] Rerouting away from other work centers
[D] Scheduling overtime
Answer: Scheduling overtime
65 In the __________________ environment, many different end items are made from a small number of components.
[A] make-to-order
[B] make-to-stock
[C] assembly-to-order
[D] engineer-to-order
Answer: make-to-order
66 A _________ is used when companies usually make more than one product and the same components are often used in several products.
[A] multiple bill
[B] single-level bill
[C] multilevel bill
[D] None of the above
Answer: multiple bill
67 __________ are purchased items received that have not entered the production process. They include purchased materials, component parts, and sub-assemblies.
[A] Work-in-process
[B] MRO supplies
[C] Finished goods
[D] Raw materials
Answer: Raw materials
68 ___________ include hand tools, spare parts, lubricants, and cleaning supplies.
[A] MRO supplies
[B] Raw materials
[C] Work-in-process
[D] Finished goods
Answer: MRO supplies
69 __________ inventory is held to cover random unpredictable changes in supply and demand or lead time.
[A] Fluctuation
[B] Anticipation
[C] Transportation
[D] Lot-size
Answer: Fluctuation
70 A(n) _____________ lists all the parts needed to make one complete assembly.
[A] indented bill
[B] multilevel bill
[C] single-level bill
[D] summarized parts list
Answer: summarized parts list
71 The Gregorian calendar:
[A] Has an equal number of days per month
[B] Works on a decimal base
[C] Spreads holidays evenly throughout the year
[D] Resource planning
Answer: Presents problems for manufacturing planning and control
72 The term _____________means that the work center is overloaded and the term ________________ means the work center is under loaded.
[A] overcapacity, under capacity
[B] undercapacity, overcapacity
[C] utilization, under capacity
[D] overcapacity, utilization
Answer: overcapacity, under capacity
73 ______________is concerned with the production of high-volume standard products.
[A] Intermittent manufacturing
[B] Product manufacturing
[C] Flow manufacturing
[D] All of the above
Answer: Flow manufacturing
74 An example of project manufacturing is:
[A] Large shipbuilding
[B] Gasoline
[C] Automobiles
[D] Appliances
Answer: Large shipbuilding
75 The _________________ collects all of the relevant data on a work center.
[A] item master file
[B] product structure file (bill of material file)
[C] work center master file
[D] routing file
Answer: work center master file
76 _________ is the amount of time the job is waiting at a work center before an operation begins.
[A] Setup time
[B] Run time
[C] Wait time
[D] Queue time
Answer: Queue time
77 A ________________ is a legal offer to purchase.
[A] purchase order
[B] quotation
[C] receiving order
[D] supplier's invoice
Answer: purchase order
78 ___________specifications and standard specifications are the two major sources of specifications or ways of describing a product.
[A] Buyer
[B] Marketing
[C] Production
[D] Functional
Answer: Buyer
79 Trends:
[A] Are level
[B] Have no change from period to period
[C] Can rise or fall
[D] All of the above
Answer: All of the above
80 Raw Materials and WIP can be classified under-
[A] Direct Material
[B] Indirect Material
[C] Finished Material
[D] Standard Parts
Answer: Direct Material

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