WorksheetsCBM - second exam
Total questions: 40
Worksheet time: 7mins
Material management is responsible for coordinating which of the following?
Selling and advertising
Planning, sourcing, purchasing, moving, and storing materials
Payroll operations
Product design
The primary goal of material management is to:
Increase marketing reach
Ensure the material cost component is the least
Improve only employee performance
Increase product price
The purchasing department is also known as the:
Accounting department
Procurement department
Engineering department
Distribution department
Material planning answers which of the following?
Who will buy the materials?
Why the materials are expensive?
What, how many, and when materials are required
Who will operate the machines
Which is NOT one of the four basic purchasing activities?
Selecting suppliers
Expediting delivery
Creating marketing campaigns
Looking for new products and suppliers
Forward buying refers to:
Buying goods only after production
Retailers purchasing units during a specific period
Exchanging goods for services
Buying goods from foreign suppliers
A blanket order system includes:
One-time delivery only
Multiple delivery dates over a period
No specific pricing agreement
No purchase order required
Zero stock means:
Overstocking items
No on-hand inventory
Overstock clearance sales
Buying materials in bulk
Reciprocity refers to:
Cross-checking supplier ratings
Exchanging things between businesses for mutual benefits
Buying from only foreign suppliers
Using stock levels for cost improvement
System contracts are:
Temporary agreements with random suppliers
Exclusive contracts with designated suppliers
Contracts without pricing terms
Informal agreements
One of the five basic traffic activities is:
Designing office layout
Selecting carriers and routing shipments
Hiring new employees
Developing product packaging
The goal of integrated waste management is to:
Increase waste production
Divert as much solid waste as possible
Burn all waste through incineration
Reduce recycling efforts
Non-production stores keep stock for:
Sales purposes
Operations or maintenance
Employee benefits
Marketing promotions
Ergonomics is also called:
Thermodynamics
Biomechanics
Human engineering
Industrial psychology
Physical ergonomics focuses on:
Human emotional processes
Designing physical systems for comfort and safety
Economic benefits
Organizational leadership
An objective of ergonomics is to:
Increase product price
Reduce convenience of use
Enhance efficiency and safety
Promote market competition
Codification refers to:
Destroying old records
Representing each item by a number
Increasing prices for all items
Hiring new coders
A key objective of codification is to:
Confuse users
Promote duplication
Provide unique code numbers for each item
Allow ambiguous descriptions
Value analysis aims to:
Increase cost
Identify unnecessary cost without reducing performance
Reduce product quality
Eliminate suppliers
Which is NOT a step in value analysis?
Brainstorming
Identifying the function
Evaluation by comparison
Rewriting supplier contracts
Store management includes:
Providing storage and preservation
Conducting sales promotions
Advertising products
Designing website content
Inventory is also called:
Business liability
Idle resource of an enterprise
A tax deduction
A long-term asset
One reason for keeping inventories is:
To increase production delays
To meet demand during replenishment
To reduce customer satisfaction
To increase obsolescence
Inventory control determines:
What to sell
What, when, and how much to order
How to hire employees
Where to advertise
ABC analysis classifies items based on:
Price only
Annual consumption value
Color and size
Supplier rating
A-items require:
No control
Low-level control
Very tight control
Random control
HML analysis classifies items based on:
Unit price
Movement speed
Supplier popularity
Seasonal availability
VED analysis focuses on:
Unit price
Criticality of items
Seasonal items
Demand patterns
FSN analysis classifies items as:
Fixed, scattered, normal
Fast, slow, and non-moving
Frequent, seasonal, and non-seasonal
Foreign and local
EOQ aims to:
Increase total cost
Identify ideal order quantity
Decrease sales
Remove all inventory
The three factors needed for EOQ are:
Price, profit, loss
Holding cost, annual demand, order cost
Sales cost, revenue, taxes
Quantity, quality, value
Poor inventory management leads to:
Lower operating costs
Improved customer satisfaction
Production prevention and cost increases
Faster deliveries
A benefit of inventory control is:
Duplicate ordering
Increased working capital waste
Smooth production flow
Higher obsolescence
GOLF analysis classifies items based on:
Unit price
Source of supply
Color
Dimensions
Dimensions
Availability (scarce, difficult, easy)
Quality
Price
Location
SOS analysis classifies items as:
Suggested vs. optional
Seasonal and off-seasonal
Sales vs. operational
Short vs. oversized
The EOQ formula is:
D × H
S ÷ D
√(2SD / H)
√(H / SD)
Inventory is considered a:
Fixed asset
Current asset
Liability
Future cost
Tabular presentation of data is part of which EOQ method?
Algebraic method
Graphing method
Tabulation method
Heuristic method
Value analysis focuses on achieving:
Higher cost with less performance
Equivalent performance at lower cost
Lower performance at same cost
No change in cost or performance
