Marathwada Mitra Mandal’s

College of Engineering, Karvenagar, PUNE - 411 052

Accredited with ‘A’ Grade by NAAC,
Recipient of “Best College Award 2019” by SPPU
Department of Mechanical Engineering

MCQ

Academic Year : 2022-23 Semester: I

Class : Fourth Year
Subject : Industrial Engineering
Course Coordinators: Prof. D. M. Pawar
UNIT 5 - Inventory and Inventory Control

Questions Bloom’s
Level
1 The minimum record accuracy required for successful MRP is BL2
approximately
A. lower than 90%
B. 90%
C. 95%
D. 99%
 Answer: Option D
2 Which of the following is a type of inventory system that is used to BL2
manage independent demand items?

A. Order point system

B. Material Requirements Planning

C. Time Phased Order Point

D. Enterprise Resource Planning

 Answer: Option C
3 To achieve ___ in purchasing and transportation, goods may be BL2
purchased in larger quantities than the actual demand.
A. Continuation
B. Quality
C. Cost efficiency
D. Potential value

Answer: (C)

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4 Which among the following is the objective of the Enterprise BL1
Resource Planning system?.
A. Manage purchase order
B. Control the flow of dependent demand inventories
C. Organise external management information
D. Balance supply and demand

Answer: (D)
5 Which of the following models is used to calculate the timing of BL2
the inventory order?
A. Economic order quantity model
B. Fixed order quantity model
C. Reorder point model
D. Fixed order inventory model

Answer: (D)

6 The type of inventory method that comprises more number of BL2

accounting transactions is known as ___.
A. Periodic inventory method
B. Perpetual inventory system
C. Finished goods inventory method
D. Fixed order period inventory system

Answer: (B)

7 In the ABC Analysis system the B category stands for___. BL2

A. Outstanding importance in value
B. Comparatively unimportant in value
C. Comparatively important in value
D. Average importance in value

Answer: (D)

8 Which among the following is a quantity of a specific item that is BL2

ordered from the supplier and issued as a standard quantity to
the production process?
A. Safety stock
B. Lot size
C. Standard deviation
D. Inventory control

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 Answer: (B)

9 The economic order quantity formula is taken using ___. BL1

A. Differential calculus
B. Integral calculus
C. Vector calculus
D. Multivariate analysis

Answer: (A)
.

10 Which among the following components is calculated as the sum BL1

of the fixed costs that happen each time an item is ordered?
A. Carrying cost
B. Order cost
C. Holding cost
D. Storing cost

Answer: (B)

11 The price reductions offered to customers for large orders, to BL2

encourage them to purchase in large quantities is known as ___.
A. Freebies
B. Quantity discounts
C. Normal discounts
D. Premiums

Answer: (D)

12 In inventory control theory, the economic order quantity is BL1

A. average level of inventory
B. optimum lot size
C. capacity of a warehouse
D. lot size corresponding to break-even analysis
Answer: Option B
13 A device used for lifting or lowering objects suspended from a hook at BL2
the end of retractable chains or cable is called

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 A. hoist
B. jib crane
C. portable elevator
D. chain conveyor
Answer: Option A
14 A-B-C analysis is used in BL3
A. CPM
B. PERT
C. inventory control
D. all of these
Answer: Option C
15 In order to avoid excessive multiplication of facilities, the layout BL3
preferred is
A. product layout
B. process layout
C. group layout
D. static layout
Answer: Option B
16 In A-B-C analysis, which class of items is generally large in number? BL3
A. A
B. B
C. C
D. none of these
Answer: Option C
17 Which of the following type of layout is suitable for automobile BL2
manufacturing concern?
A. product layout
B. process layout
C. fixed position layout
D. combination layout
Answer: Option A
18 Which of the following statement is correct? BL2
A. A-B-C analysis is based on Pareto's principle.
B. Simulation can be used for inventory control.
C. Economic order quantity formula ignores variations in demand
pattern
D. all of the above
Answer: Option A
19 The type of layout used for manufacturing steam turbines, is BL1
A. product layout
B. process layout
C. fixed position layout
D. any one of these
Answer: Option C
20 For material transportation, conveyors are used when the prevailing BL1

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 conditions include
A. loads are uniform
B. routes do not vary
C. materials move relatively continuously
D. all of these
Answer: Option D
21 The production scheduling is simpler and high volume of output and BL3
high labour efficiency are achieved in the case of
A. product layout
B. process layout
C. fixed position layout
D. a combination of line and process layout
Answer: Option A
22 Which of the following are the principles of material handling? BL3
A. keep all the handling to the minimum
B. select only efficient handling equipment
C. move the heaviest weight to the least distance
D. all of the above
Answer: Option D
23 The product layout BL2
A. lowers overall manufacturing time
B. requires less space for placing machines
C. utilises machine and labour better
D. all of these
Answer: Option D
24 Product layout is best suited where BL3
A. one type of product is produced
B. product is standardised
C. product is manufactured in large quantities
D. all of the above
Answer: Option D
25 In a thermal power plant, coal from the coal handling plant is moved to BL2
the boiler bunker through a
A. belt conveyor
B. bucket conveyor
C. fork lift truck
D. overhead crane
Answer: Option A
26 The most important function of inventory control is BL1
A. stock control system
B. to run the stores effectively
C. technical responsibility for the state of materials
D. all of the above

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 Answer: Option D
27 In perpetual inventory control, the material is checked as it reaches its BL2
A. maximum value
B. minimum value
C. average value
D. any one of these
Answer: Option D
28 In process layout BL2
A. handling and back-tracking of materials is too much
B. production control is more difficult and costly
C. routing and scheduling is more difficult
D. all of the above
Answer: Option D
29 A-B-C analysis BL2
A. is a basic technique of materials management
B. is meant for relative inventory control
C. does not depend upon the unit cost of the item but on its annual
consumption
D. all of the above
Answer: Option D
30 Which of the following charts are used for plant layout design? BL2
A. Operation process chart
B. Man machine chart
C. Travel chart
D. all of these
Answer: Option D
31 According to Muther, the basic principle of best layout is BL2
A. principle of over-all integration
B. principle of flow
C. principle of flexibility
D. all of these
Answer: Option D
32 Product layout is also known as BL2
A. analytical layout
B. synthetic layout
C. static product layout
D. none of these
Answer: Option B
33 In fixed position layout BL1
A. total production cost is less
B. material movement is less
C. capital investment is minimum

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 D. all of these
Answer: Option D
34 Product layout is used for BL2
A. job production
B. batch production
C. mass production
D. any one of these
Answer: Option C
35 For handling materials during manufacture of cement, a __________ is BL3
widely used.
A. belt conveyor
B. bucket conveyor
C. fork lift truck
D. overhead crane
Answer: Option B
36 Process layout is employed BL2
A. where low volume of production is required
B. where similar jobs are manufactured on similar machines
C. where machines are arranged on functional basis
D. all of the above
Answer: Option D
37 The profit of an enterprise can be increased by BL2
i. Reducing total costs of production
ii. Increasing sales value
iii. Increasing capital cost
iv. Increasing manpower
Which of the above are true?
A. Only i
B. i & ii
C. I, ii & iii
D. All of the above
Answer: Option B
38 Which of the following industries should be located near the vicinity BL2
of raw materials?
A. Cycles
B. Televisions
C. Sewing machines
D. Steel mills
Answer: Option D
39 For which of the following industry humid climate is helpful BL1
A. Cotton
B. Steel
C. Light Bulb
D. Automobile

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 Answer: Option A
40 For good natural ventilation, the ____ type of building preferred BL2
A. Flat roof
B. Saw tooth
C. Highbay
D. Monitor
Answer: Option D
41 Buildings for foundries and steel mills are often of the BL2
A. Flat roof
B. Saw tooth
C. Highbay
D. Bow string
Answer: Option C
42 Which of the following is not true for Multi-storey building? BL2
A. High heating and ventilation cost
B. Small ground runs for drainage
C. Adopted for manufacture of light goods
D. Less roof repairs
Answer: Option A
43 “Space available in vertical and horizontal directions is most BL2
effectively utilized” is known as principle of
A. Cubic space utilization
B. Flexibility
C. Flow
D. Minimum distance
Answer: Option A
44 If all the processing equipment and machines are arranged according to BL2
the sequence of operations of a product the layout is known as
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer: Option A

45 The following type of layout is preferred to manufacture a standard BL1

product in large quantity
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer: Option A
46 The following type of layout is preferred for low volume production of BL2
non standard products
A. Product layout
B. Process layout
C. Fixed position layout

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 D. Combination layout
Answer: Option B
47 In ship manufacturing, the type of layout preferred is BL2
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer: Option C
48 EOQ is the order quantity that over our planning horizon. BL2
A) minimizes total ordering costs
B) minimizes total carrying costs
C) minimizes total inventory costs
D) the required safety stock
Answer: Option B
49 Which of the following is not an inventory? BL2
A Machines
B Raw material
C Finished products
D Consumable tools
Answer: Option A
50 The Economic Order Quantity (EOQ) is calculated as BL1
A (2D*S/h)^1/2
B (DS*/h)^1/2
C (D*S/2h)^1/2
D All of the above
 Answer: Option A

Marathwada Mitra Mandal's College of Engineering