I Internal Test, OM - II, B12

Marks: 10, Time: 20 minutes

Name:_____________________________________, Section_______, R.No._________

Note: Please indicate your answers appropriately. Round / tick mark the right choice in objective type of
questions and verbal statements in few subjective type questions.

1) The quantity of end items that marketing department can assure to deliver on specified dates to customer
is known as

a) Safety Stock b) On-hand inventory c) Available-to-Promise (ATP) inventory

d) Ready-to-pick (RTP) inventory

2) A service firm, after preparing the MPS can prepare ________________________to determine the
equipment, staff and other materials required to meet demand, at the time they are needed.

a) Bill of Materials b) Bill of Resources c) Master Service Schedule

d) Resources Requirement Plan

3) CHARTER is
a) a chart which shows the aggregate demand planning of a product group / product family
b) a chart that shows the materials requirement plan as per the MPS
c) assignment of product families to a specific plant or sub-process within a plant
d) assignment of a worker to a machine or work station

4) Hiring and Laying-off employees, using overtime, using part-time labor are all cases of modifying supply
component to manage capacity in aggregate demand planning. One of the following is a case of modifying
demand component to manage capacity in aggregate demand planning
a) carrying inventory
b) sub-contracting
c) pricing and promotion
d) all of the above

5) Name two mathematical approaches to aggregate planning

a)
b)

6) Brief ‘Low-level coding’ using the diagram shown below (use the space besides diagram to brief)

B C

D E

B
7) Cycle counting is
a) periodic auditing of machinery in the plant
b) periodic auditing of supplier plant locations
c) periodic auditing of inventory policies of the company
d) periodic auditing of the inventory quantities in the store to ensure accuracy

8) Mention one advantage and one disadvantage of MRP system

a)

b)

9)

If M = 1000, I = 300, Q = 50, order can be placed when

a) q = 49 b) q = 700 c) q < 50 d) always when q < 700

10) Mention two ‘Expedient Methods’ to calculate Reorder level in fixed-order quantity model.
a)

b)