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XIBMS – Material Management Answer Sheet

XIBMS – Material Management


XIBMS – Material Management
1. What is inventory?
2. Define Inventory control?
3. What is inventory carrying cost?
4. What is reorder level?
5. What is hand to mouth purchase?
6. What are blanket orders?
7. What is scrap yard?
8. Define Dispatch?
9. Define standardization principle?
10.What is material transfer note?
11.What is time value?
12.What is Quality manual?


All questions carry equal marks

Write short notes on any  four of the following:

(a) Integrated Materials Management

(b) Problems and risks in vendor networking

(c) Manufacturing Resources Planning (MRP II)

(d) Use of OR techniques in Materials Management

Answer any five questions
All questions carry equal marks
1.Explain the objectives of materials management?
2.How will you classify materials in a manufacturing concern?
3.How is the reorder point determined? What is the significance of reorder point to the production manager?
4.What assumptions are necessary to use the basic economic order quantity?
5.Explain the procedure to be followed to the purchase of a item until the payment of bill.
6.What are the duties and responsibilities of store keeping?
7.explain the functions and role of value analysis?
8.What precautions are to be taken to prevent out break of fire in storehouses?

Answer any two questions
All questions carry equal marks

1.Compare and contrast with ABC analysi with FSN analysis?
2.Explain the steps involved in systematic material handling analysis.
3.Explain the different methods of buying goods from abroad.
4.Discuss the criteria to be taken in to account in vendor rating.

Section E – (5X8=40 MARKS)

  1. It the responsibility for maintaining the quality of the product and incurring less cost on its production is the responsibility of the production/operation” and deciding the price of the product and finding the customers that will buy it comes under “marketing”, what does the ‘materials management function” do?
  2. What is the need for International Purchase? Discuss the procedure and problems in International Purchase.
  3. Differentiate between independent and dependent demand inventory. Dependent demand inventory items do not need to be forecast. Why not? Explain with the help of examples?
  4. If you reduce WIP then you expose many organizational bottlenecks.” Comment on this statement. Also, state the reasons for your agreement/disagreement.
  5. What are the objectives of codification, standardization and simplification? How does standardization lead to variety reduction? Discuss the advantages and disadvantages of Standardization.
  6. Explain how a performance appraisal system can be used in the context of materials management. What are the metrics of performance appraisal in materials management?
  7. List the major advantages and short comings of FIFO, LIFO, and Average methods of stores evaluation. Under what conditions are the three inventories flow methods essentially equivalent?



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