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
View Answer
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
View Answer
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
View Answer
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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