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Top 20 Material Management MCQ with Answers

Here you can find top 20 Material Management Multiple Choice Questions with answers. These Material Management MCQ with solutions are helpful for MBA, MCA, BBA, B Com, BE, ME, MMM, and PGDM students and researchers to understand the important concept of Materials management.

Given below are Materials Management MCQs with Answers. For Solutions click on “View Answer” button.

Raw Materials and WIP can be classified under ________

A. Indirect Material

B. Direct Material

C. Finished Material

D. Standard Parts

View Answer

B. Direct Material

_________ are the basic materials which have not undergone any conversion since their receipt from suppliers.

A. WIP

B. Raw Material

C. Finished Parts

D. Work Made Parts

View Answer

B. Raw Material

Buying according to the requirements is called ________

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

View Answer

b. Hand to mouth buying

Which is not a part of 5R’s of buying?

a. Right Quality

b. Right Quantity

c. Right Source

d. None of the above

View Answer

d. None of the above

The business cycle, price trends, National Economy is ___________

a. Micro Factors

b. Macro Factors

c. Controllable Factors

d. None of the above

View Answer

b. Macro Factors

__________ also called part lists or building lists is the document generated at the design stage.

a. MRP (Material Requirement Planning)

b. BOM (Bill of Materials)

c. MPS (Master Production Schedule)

d. None of the above

View Answer

b. BOM (Bill of Materials)

Purchasing responsibilities can be divided into Buying, Clerical and ________ division.

a. Packing

b. Traffic

c. Record

d. Follow up

View Answer

b. Traffic

Materials Management has an important role in ______ management.

A. Production

B. Supply chain

C. Operations

D. All of the above

View Answer

D. All of the above

The first activity of Purchasing cycle is _____________

a. Communicating requirement to the purchase

b. Source Selection and development

c. Recognizing the need for procurement

d. Inspection of goods

View Answer

c. Recognizing the need for procurement

________ is the time that elapses between issuing replenishment order and receiving the material in stores.

a. Replenishment time

b. Lead time

c. Idle-time

d. None of the above

View Answer

b. Lead time

_________ is the scientific technique for planning the ordering and usage of materials at various levels of production and for monitoring the stocks during these transactions.

a. MPS

b. MRP

c. BOM

d. None of the above

View Answer

b. MRP (Material Requirement Planning)

_________ is the task of buying goods of the right quality, in the right quantities, at the right time and at the right price.

a. Supplying

b. Purchasing

c. Scrutinizing

d. None of the above

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b. Purchasing

Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier by the buyer.

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

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c. Scheduled Buying

Buying of the annual requirements of an item during its season is called _______

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Speculative Buying

View Answer

d. Speculative Buying

Tip: Do not get confused with seasonal buying

______ is the capability of manufacturing to produce goods and services.

A. Control

B. Priority

C. Capacity

D. Planning

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C. Capacity

Materials management mainly focuses on _______

A. management of raw material or components required for continuous production

B. production of finished goods and it’s sale in the appropriate market

C. management of logistics and supply chain activities for timely market reach

D. distribution of materials to the seller and distributor for smooth functioning of the market activities

View Answer

A. management of raw material or components required for continuous production

To get the most profit, a company should________

A. Provide the lowest inventory investment

B. Provide the highest distribution costs

C. Provide high production costs

D. Provide little customer service

View Answer

A. Provide the lowest inventory investment

______ & direct material are costs that increase or decrease with the quantity sold.

A. Indirect labor

B. Direct labor

C. Indirect material

D. Labor

View Answer

B. Direct labor

The available capacity can be increased by ________

A. Limiting subcontracting

B. Using fewer workers

C. Rerouting away from other work centers

D. Scheduling overtime

View Answer

D. Scheduling overtime

The transit time between work centers is _____.

A. run time

B. move time

C. setup time

D. wait time

View Answer

B. move time

This is all about Material Management MCQ with answers.

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