Round 1
Quiz
•
Professional Development
•
•
Practice Problem
•
Hard
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the ABC Analysis system the B category stands for___.
Outstanding importance in value
Comparatively unimportant in value
Comparatively important in value
Average importance in value
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The cost of insurance and taxes are included in
Cost of ordering
Set up cost
Inventory carrying cost
Cost of shortages
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The time period between placing an order its receipt in stock is known as
Lead time
Carrying time
Shortage time
Over time
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A method that uses a predetermined overhead rate to allocate overhead costs is known as ___.
Plant-wide allocation
Shipping allocation
Department allocation
Production-wide allocation
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The demand rate for a particular item is 12000 units/year. The ordering cost is Rs.100 per order and the holding cost is Rs.0.80 per item per month. If no shortages are allowed and the replacement is instantaneous, then the economic order quantity is
1500 units
500 units
2000 units
1000 units
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A company uses 2555 units of an item annually. Delivery lead time is 8 days. The reorder point (in number of units) to achieve optimum inventory is _____
7
8
56
60
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The minimum stock level is calculated as
Reorder level – (Normal consumption x Normal delivery time)
Reorder level + (Normal consumption x Normal delivery time)
(Reorder level + Normal consumption) x Normal delivery time
(Reorder level + Normal consumption) / Normal delivery time
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