UNIT - IV MATERIALS MANAGEMENT

SYLLABUS: Materials Management – Objectives, Planning, Budgeting & Control.

Purchasing – Objectives, Functions, Policies, Vendor Rating & Value Analysis. Store
Management – Nature, Layout, Classification & Coding. Inventory – Objectives, Costs &
Control Techniques. Overview of
JIT
PART - A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 Define Just In Time and list the objectives of JIT. Level 1 Remembering

2 Explain the purpose of studying materials management. Level 2 Understanding

3 How would you use VED analysis? Level 3 Applying

4 Can you list the three vendor rating techniques? Level 4 Analysing

5 What are the reasons for stocking items in Inventory? Level 5 Evaluating

6 Explain material planning. Level 6 Creating

7 How would you explain ‘KANBAN’ in JIT? Level 1 Remembering

 8 What can you say about vendor/performance rating? Level 2 Understanding

9 How would you apply the steps in lean manufacturing? Level 3 Applying

10 Why do you think JIT is needed in manufacturing? Level 4 Analysing

11 List the components of Inventory Carrying Cost? Level 5 Evaluating

12 What is meant by Store Layout? Level 6 Creating

13 How would you explain centralized buying? Level 1 Remembering

14 Explain materials management manual. Level 2 Understanding

15 How would you use FSN analysis? Level 3 Applying

What is the relationship between the “push” and “pull”
16 Level 4 Analysing
methods of material flow?
17 Define the term Re order point. Level 1 Remembering

18 What is meant by ABC analysis? Level 2 Understanding

19 Define value analysis. Level 1 Remembering

20 What is meant by Vendor Rating? Level 1 Remembering

S.NO PART - B QUESTIONS BT LEVEL COMPETENCE

1 How would you explain inventory control techniques? Level 1 Remembering

Can you explain the principles and factors affecting

2 layout of stores? What are the various records used in Level 2 Understanding
stores?

How would you use objectives of integrated materials

3 Level 3 Applying
management?

What conclusions can you draw from selective inventory

4 Level 4 Analysing
control?

What are the objectives, functions and policies of

5 Level 5 Evaluating
purchasing?

How could you determine waste in production and what

6 are the characteristics, basic elements, benefits & Level 6 Creating
limitations of JIT?
 a) How would you describe the steps involved in value
7 analysis? Level 1 Remembering
b) What are the criteria used for selection of vendors?

a) How would you explain materials management

8 information systems (MMIS)? Level 2 Understanding
b) Also explain the functions of MMIS.
a) What facts would you select to show the
different motives for holding the inventories
and also explain
9 the cost associated with inventories? Level 3 Applying
b) Can you list and explain the various selective
inventory control techniques?

10 Can you explain the vendor rating techniques? Level 4 Analysing

a) Explain in detail the procedure to carry out Value

11 Analysis Level 1 Remembering
b) State the Pros and Cons of Value Analysis

a) Give a detailed outline on Purchasing procedure

12 b) Give a brief note on Centralized and Decentralized Level 2 Understanding
Purchasing
a) What is selective inventory control?
13 b) State the procedure applicability and process of Level 4 Analysing
Selective Inventory Control.
Briefly enunciate the objectives, nature and importance of
14 Level 1 Remembering
Inventory Management with real world example

PART - C
S.No Questions
As a purchase manager of an X company, what factors do you consider to evaluate the
1 vendors?

2 When a company has to apply value analysis and how to apply it?

3 Assume you are a storekeeper of a textile unit. What are your roles and
responsibilities?

a) Ashish keeps his inventory in special containers. Each container occupies 10 square feet
of store space. Only 5,000 square feet of the storage space is available. The annual demand
for the inventory item is 9,000 containers, priced at rupees 8 per container. The ordering
cost is estimated at rupees 40 per order and the annual carrying costs amount to 25% of
4 the inventory value. Would you recommend to Ashish to increase his storage space? If
 so, how much should be the increase? (8 Marks)

b) A Company uses annually 12,000 units of raw material costing rupees 1.25 per unit.
Placing each order costs rupee 15 and the carrying cost 15% per year per unit of the
average inventory, find the economic order quantity. (7 Marks)