Material Management MCQs | Material Management Multiple Choice Questions with Answers

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Questions
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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