Production and Operations Management Multiple Choice Questions and Answers | Production and Operations Management MCQs Quiz

Questions
1 Cycle counting
A Provides a measure of inventory turnover.
B Assumes that all inventory records must be verified with the same frequency.
C Cannot be done in an independent demand situation.
D Is a process by which inventory records are verified.

Answer:Is a process by which inventory records are verified.
2 Policies based on ABC analysis might include investing
A More in inventory security for C items.
B More in supplier development for A items.
C The most time and effort verifying the accuracy of records for B items.
D Extra care in forecasting for C items.

Answer:More in supplier development for A items.
3 Higher demand uncertainty provides higher savings by pooling which of the following inventory?
A Seasonal inventory
B Pipeline inventory
C Safety inventory
D Decoupling inventory

Answer:Safety inventory
4 The two most important inventory-based questions answered by the typical inventory model are
A When to place an order and what is the cost of the order.
B When to place an order and how many of an item to order.
C How many of an item to order and with whom the order should be placed.
D How many of an item to order and what is the cost of this order.

Answer:When to place an order and how many of an item to order.
5 Cycle inventory helps in
A Taking care of any special event that does not occur on a regular basis
B Taking care of uncertainty in demand and supply of products/components
C Finding out the amount of stock required during a finite period in order to move the materials from one location to another
D Taking advantage of economies of scale and reducing cost within the supply chain

Answer:Taking advantage of economies of scale and reducing cost within the supply chain
6 Centralized system will provide benefits for the items which
A Are fast-moving
B Are slow moving and have high demand variability
C Have low demand variability
D Have high demand variability

Answer:Are slow moving and have high demand variability
7 The difference(s) between the basic EOQ model and the production order quantity model is (are) that
A The production order quantity model does not require the assumption of known, constant demand.
B There are no holding costs in the production order quantity model.
C The production order quantity model does not require the assumption of instantaneous delivery.
D The eoq model does not require the assumption of known, constant lead time.

Answer:The production order quantity model does not require the assumption of instantaneous delivery.
8 The inventory which is dependent on alternative modes of transportation is known as
A Safety inventory
B Pipeline inventory
C Decoupling inventory
D Seasonal inventory

Answer:Pipeline inventory
9 Inventory record accuracy would be decreased by
A Abc analysis.
B Increasing stockroom accessibility.
C Cycle counting.
D reorder points.

Answer:Increasing stockroom accessibility.
10 A system that keeps track of each withdrawal or addition to inventory continuously is
A A perpetual inventory system.
B A continuous inventory system.
C A fixed period system.
D A fixed quantity system.

Answer:A perpetual inventory system.
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