15/3 Stock Practices in Industry - MCQ with Answers

What is the main principle of Just in Time (JIT) manufacturing?

• Storing large quantities of stock

• Producing only what is needed, when it is needed

• Keeping excess inventory to avoid shortages

• Selling products before manufacturing them

Which company was the first to introduce JIT on a large scale?

• Ford

• Toyota

• General Motors

• Tesla

What is a key advantage of Just in Time (JIT)?

• Increased storage costs

• Reduced waste and increased efficiency

• More stock available at all times

• Increased reliance on storage space

What does Made to Stock (MTS) rely on?

• Forecasted sales and historical demand

• Producing items only when an order is received

• Waiting for customer specifications before production

• Ordering raw materials only when needed

What is a key characteristic of Made to Order (MTO) production?

• a) Large-scale production of standard items

• b) Manufacturing begins only after a confirmed order is received

• c) Keeping large amounts of finished products in stock

• d) Selling products before they are manufactured

Which manufacturing process relies heavily on software for scheduling and inventory control?

• Just in Time (JIT)

• Made to Stock (MTS)

• Material Requirements Planning (MRP)

• Made to Order (MTO)

What is a potential disadvantage of JIT manufacturing?

• High storage costs

• Increased risk of supply chain disruptions

• Excess stock and waste

• Increased lead times for customers

Why is packaging important in stock management?

• It makes products look more attractive

• It ensures items are batched, protected, and transportable

• It increases production speed

• It reduces the cost of raw materials

What happens when there is a failure in the supply chain?

• Only the company directly affected is impacted

• All companies further down the chain can be affected

• It results in excess inventory

• It reduces the cost of production