Inventory Control - 1


10 Questions MCQ Test Manufacturing and Industrial Engineering | Inventory Control - 1


Description
This mock test of Inventory Control - 1 for Mechanical Engineering helps you for every Mechanical Engineering entrance exam. This contains 10 Multiple Choice Questions for Mechanical Engineering Inventory Control - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Inventory Control - 1 quiz give you a good mix of easy questions and tough questions. Mechanical Engineering students definitely take this Inventory Control - 1 exercise for a better result in the exam. You can find other Inventory Control - 1 extra questions, long questions & short questions for Mechanical Engineering on EduRev as well by searching above.
QUESTION: 1

Consider the following functions of inventory:
1. to decouple or separate parts of the production process.
2. to provide a stock of goods that will provide a selection for customers.
3. to take advantage of quantity discounts.
4. to hedge against inflation.

Which of the above functions are valid?

Solution:
QUESTION: 2

The statements about ABC analysis are following:
1. Inventory may be categorized by measures other than dollar volume.
2. It categorizes on-hand inventory into three groups based on annual rupee volume.
3. It is an application of the pareto principle.
4. It states that all items require same degree of control.
5. It states that there are the critical few and the trivial many inventory items.

Which of the above statements are true?

Solution:
QUESTION: 3

ABC analysis divides on-hand inventory into three classes, generally based on

Solution:
QUESTION: 4

The two most basic inventory answerd by the typical inventory model are

Solution:
QUESTION: 5

Which of the following statements about the basic EOQ model is true?

Solution:
QUESTION: 6

The EOQ model with quantity discounts attempts to determine

Solution:
QUESTION: 7

The purpose of safety stock is to

Solution:
QUESTION: 8

A disadvantage of the fixed-period inventory system is that

Solution:
QUESTION: 9

Two groups of costs in inventory control are

Solution:

Two costs are involved in inventory control viz. carrying cost and ordering cost.

QUESTION: 10

In basic economic order quantity model for the optimal order quantity,

Solution:

For economic order quantity Holding cost = ordering cost

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