Test: Inventory Control Level - 1 - Mechanical Engineering MCQ

Consider the following inventory costs

1. cost of inspection

2. scrap cost

3. insurance cost

4. cost of negotiation with suppliers

Which of these costs are related to carrying cost?

Which of the following cost elements are considered while determining the Economic Lot Size for purchase in basic EOQ model?

1. Inventory carrying cost

2. Procurement cost

3. Set up cost

Select the correct answer using the codes given below Codes:

Which of the following statement is correct regarding EOQ?

In basic EOQ model, EOQ is dependent on which of the following?

1. ordering cost

2. unit cost

3. lead time

In fixed order quantity system i.e., Q-system, orders are placed whenever

The number of orders for a period is calculated using which of the following formula

At EOQ the total variable cost doesn’t depend on which of the following

Formula of EOQ for a basic EOQ model doesn’t contain

Which one of the following is an inventory system that keeps a running record of the amount in storage and replenishes the stock when it drops to a certain level by ordering a fixed quantity?

ABC analysis is done to

Inventory classification based on criticality of usage is done in which of the following techniques

Which of the following selective inventory control technique is based on unit price of the items

In ABC analysis, A items require

Classifying items in A, B and C categories for selective control in inventory management is done by arranging items in the decreasing order of

In the ABC method of inventory control, Group A constitutes costly items. What is the usual percentage of such items of the total items?

In the EOQ model, if the unit ordering cost is doubled, the EOQ

The annual demand for a commodity is 100 units. The ordering cost per order is Rs. 800 and carrying cost is Rs. 0.16 per unit per year. Find the optimal ordering quantity.