Material Management

Before computer engineered systems became prevalent in the business world, what is the mode of recording inventory?

• By hand

• By typewriter

• By computer

• By clay tablets

There is an assortment of data required to successfully run an MRP inventory system in an organization. Which of the following does not belong?

• End user

• Shelf life

• End item

• Inventory records

JP, an employee of J & J business, was tasked to record detailed accounts of materials and components used to make each of the different products in an organization. What should he prepare?

• Purchase Request

• Inspection Report

• Bill of Materials

• Quotations

Why is Material Requirements important?

• It maintains low inventory level.

• It increases cost of warehousing product.

• It increases associated costs.

• It requires extensive maintenance.

Joaz, an employee of ABC business ventures wants to identify how many materials are available for use, work in progress, and completed. What document will he going to look into?

• Storage System

• Requisition List

• Inventory Records

• Purchase Summary

What do we call the items that can be identified with a product and can be easily charged directly into the product?

• Indirect materials

• Direct materials

• Pre-process stock

• Intermediate stock

Computerized systems have also drawbacks. Why do you think Materials Requirement Planning is also detrimental to an organization?

• It ensures capacity utilization.

• It reduces cost of warehousing product.

• It requires extensive maintenance of robust databases.

• It extensively tracks every piece of inventory that comes in and goes out.

Computerized systems have also drawbacks. Why do you think Materials Requirement Planning is also detrimental to an organization?

• It ensures capacity utilization.

• It reduces cost of warehousing product.

• It requires extensive maintenance of robust databases.

• It extensively tracks every piece of inventory that comes in and goes out.

What do we call the items that are yet to be used in the manufacturing process and are obtained prior to the start of production?

• Finished goods

• Direct materials

• Intermediate stock

• Pre-process stock

RJ doesn’t know where to put the items for sale in the rack. The items he is handling has a value of 10 to 20 of the total items in the stores and represents 10 to 20 of the total stores value.  Being knowledgeable of the categories, how will you help RJ?

• Tell him to put it in Category A.

• Tell him to put it in Category B

• Help him to put it in Category C

• Help him to put it in Category D