8/7/2019 Question Bank on Materials Management

1/12

Q1: Which of the following can be separated from the group?(i)Administrative lead time(ii) suppliers lead time(iii) technical lead timeiv) Transporter lead time

Q2: Which of the following cannot be termed as function of materialmanagement ?(i) sourcing(ii) Import and Export(iii) Risk management(iv) IndentingQ3: Which of the concept can be taken into consideration whileassessing right time for purchase?a: Standarizationb : ROLc: Vendor ratingd :Purchase

Q4:The concept of EOQ is related withA: qualityB: timeC: contractD: quantity

Q 5: Which is not the function of stores management ?

A :Preparation of recieptB : arranging inspectionC : inventory controlD : procurement

Q6 : Which one of the following is a rational technique of modernstorekeeping ?A: EOQ ,B : value analysisC: AccountingD : Codification

Q 7 : The condition of destination and mode of delivery is specifiedin :A; IndentB : specificationC : Stores receiptD : Purchase Order

Q8: After unloading the material at stores , it is initially kept atA : Inspection Bay

B ; outside the storesC: inside the stores

8/7/2019 Question Bank on Materials Management

2/12

D ; send to the indentor

Q9 ; While taking delivery of material , the delivery challan shouldbe compared carefully with :A ; Indent

B; technical specficationC: purchase OrderD : receipt document

Q 10 ; MRR stands forA : material removal registerB : Maintenance Report RegisterC: material receipt register

Q 11 : In some case supplier donot sends dispatch copy or R/R orG/R toA : store divisionB ; the bankC: Material Department

Q 12; After accepting the receipt of material in the daily materialreceipt , to whom inspection notice is served ;A ; StoresB: Material

C : FinanceD : Indentor

Q13: what is the time given for inspector to inspect the material putat the inspection bay at store ?A : 2 daysB: 3 daysC : 5 daysD ; 6 days

Q 14: GRS is prepared in how many copies ?

A ; 3B : 5C ; 7D ; 8

Q15 ; Which copy of the GRS sent to purchase division ?A : 1stB : 2ndC : 3rdD : 4th

8/7/2019 Question Bank on Materials Management

3/12

Q16 :Which of the following is not indicated in the Material ControlCard ( Stock) ?A : receiptB : IssueC : Balance quantity

D : Indent no.

Q17 ;The date and signature of verification of the quantity is notedin :A ; Material Control CardB ; KardexC : Goods Receipt sheetQ 18 : Indent is prepared in how many copies ?A : 3B : 5C : 6D : 4Q19: Which copy of Indent is retained by the material department ?A : 3rdB : 4thC: 5th

D: 6thQ20: Which is the basic document for making payment to thesuppliers ?A : material receipt registerB : purchase order

C : GRSQ21 : Which of the classification of items is based on stock-value ?A : FSNB: ABCC : XYZQ22 ; X,Y,Z items are suggested to be covered under the stockverification in the consecutive years :A : 3,4,5 yrsB : 2,3,4 yrsC; 1,2,3 yrsQ 23 ; Physical verification of stores is not essentially resorted for

the purpose ;A : actual physical balances of stockB : actual requirement of stockC : to identify slow moving and non-moving itemsD : the receipt , issues and the stocks to be accounted

Q24: Which of the following is not the reason for stock discrepancies?A ; weighted differencesB : measurement differences

C : Improper storageD: none of the above

8/7/2019 Question Bank on Materials Management

4/12

Q25 ; Which of the following stock verification methods has notbeen adopted in the NTPC ?

A : periodical stock verificationB : continous stock verificationC ; verification by Internal auditorsD ; Verification by the external agency .

Q26 ;By whom the surprise verification be done ?A : a team of three officers comprising Finanace deparment ,material department , purchase departmentB ; a team of at least two officers drawn from departmentsother than materials department .C; two senior officer of material departmentD ; By GM/ Head of the Plant .

Q27 ; Stock verifier , appointed specifically for the purpose areunder control of which authority ?A : General ManagerB ; HOD materialC : CFM/ Head of FinanceD: HOD purchase

Q28: Who is responsible for achieving the target of 100% stock

verification of stores?A : Head of FinanceB : GM/Plant HeadC: HOD material

Q29: Which of the following can be termed as Preventive method ofcontrolling inventories ?A: Watch on the actual receiptB : accurate forcasting and schedulingC: monitoring stock levelsD ; quick disposal of slow moving and obsolete stocks .

Q 30 ; which of the following can be termed as corrective action ofcontrolling inventories?A : Reduction of procurement lead timeB : Expeditious paper workC : Monitoring stock levelD : proper material planning and control

8/7/2019 Question Bank on Materials Management

5/12

1 : ABC Classification is based on

a) Criticality of items

b) Inventory value of items at the year end

c) None of the two

2 : VED classification made ona) Market availability

b) Annual consumption value of item

c) Criticality of items

d) None

3 : Which technique helps us to identify obsolete items

a) ABC Analysis

b) XYZ analysis

c) FGH analysis

d) Movement analysis

4 : If you take delivery from railways at a later date than prescribed the penalty

imposed on is known as

a) Wharfage chargeb) Obsolete charge

c) Negligent charge

d) Demurrage charge

5 : Valuation of financial year closing of stocks is known as

a) ABC analysis

b) XYZ analysis

c) Stock analysis

d) None of the above

6 : Inventory is a term related to Contracts Management.

a) Yes

b) No

c) Cant say

d) It depends

7 : The time that lapses between raising of purchase requisition by user departments

or stores and receipt and acceptance of materials at stores for issue to user

departments is known as

a) Lead time

b) Running time

c) Time gap analysis

d) None of these

8 : Find the odd one out

a) ABC analysisb) XYZ analysis

c) Work to Permit

d) VED analysis

9 : CX items are those items whose available stock is exceeding

a) 15 years consumption

b) 5 years consumption

c) 10 years consumption

d) There is no such item known as CX

10 : Purchasing problems with regards to availability in the market can be addressed

through

a) ABC analysis

b) XYZ analysisc) Markov Analysis

8/7/2019 Question Bank on Materials Management

6/12

d) SDE classification

11 : Cost estimate in Purchase Indent helps in determining

a) Who is competent authority

b) How to evaluate bids

c) Both

d) None

12 : Which is not relevant to inventory

a) carrying cost

b) ordering cost

c) waiting cost

d) all of the above are inventory costs

13 : Inventory analysis based on unit rates of items is known as XYZ analysis.

a) True

b) False

c) Cant say

d) There is no such analysis

14 : If we need to store 5 cylinders of toxic or corrosive gases do we need to take the

license from Department of Explosives?

a) No need to take separate license for this purpose

b) Yes

c) No. It is required if it is more then 20 cylinders

d) Both b and c

15 : Which is related to Materials management function

a) ABC analysis

b) XYZ analysis

c) HML analysis

d) All are related

16 : Open tender is also known as Press tender, NIT etca) True

b) False

17 : NTPC standard payment term isa) 100% within 30 days from date of receipt and acceptance of material

b) 100% along with Purchase Order

c) There is no such standard payment term

d) None

18 : SRV means Stores Returned Voucher.

a) Yes

b) No

c) Cant say

19 : MRN is an acronym for

a) Material Return Note

b) Material Requisition Note

c) Material Rating Number

d) Materials Required Notary certification

20 : MTN stands for Material Transfer Note

a) Yes

b) No

21 : Length of lead time effects on inventory holding.

a) True

b) False22 : High inventory means higher efficiency.

8/7/2019 Question Bank on Materials Management

7/12

a) True

b) False

23 : Stores Requisition-cum-issue Voucher can be approved by Any Executive in

Stores department.

a) Yes

b) No24 : SAS in materials management stands for

a) Stores accounting system

b) Stores analysis scheme

c) Stores Acquisition system

d) None

25 : Tenders invited from only one manufacturer is known as

a) Single tender

b) Open tender

c) NIT

d) None

26 : How many digits are there for stocked material codes

a) 10b) 11

c) 09

d) 12

27 : Categorisation method is used for rating

a) Vendors

b) Dealers

c) Customers

d) Suppliers

28 : Physical stock verification is done by

a) Stores

b) Finance

c) HRd) FQA

29 : Who is responsible for stock verification for each financial year

a) Head of Project

b) Head of Materials

c) Head of O&M

d) Head of Finance

30 : The most basic technique of inventory management is

a) ABC Analysis

b) ZYX analysis

c) CBA analysis

d) PQR analysis31 : Who will raise the indent for consumables

a) O&M

b) HR

c) Stores

d) Any department

32 : FOR stands for

a) Free on Road

b) Finance on Road

c) Free on Return

d) None

33 : GRS stands for

a) Goods received sheetb) Goods receipt system

8/7/2019 Question Bank on Materials Management

8/12

c) Godown Requisition Sheet

d) None

34 : Purchase indent is prepared in _____ copies

a) 6

b) 8

c) 5d) 735 : SD shall be collected from the successful BIDDER

(VENDOR) only as per the prescribed rates.a)Trueb) False

36 : We can treat the EMD as a part of SecurityDeposit.

a) Yes

b) No37 : IUC classification stands for

a) Insurance, Unit assembly and consumable

b) Indented Unit costs

c) Insurance under cover

d) None

38 : OEM, OMS, PAC leads to

a) Single tendering

b) Double tendering

c) NIT

d) None

39 : EOQ is related with

a) Quantityb) Quality

c) Time

d) Money

40 : Which is the basic document for making payment to suppliers

a) GRS

b) MTN

c) MRN

d) Payment order by supplier

41 : What is the value of the bid guarantee/EMD?

a) 2% of cost estimate if the same is below 5 crores

b) 1% of cost estimate if the same is more than 5 crores

c) Both

d) None

42 : What could be the value of the Bank Guarantee?

a) 10% of the total contract price

b) 5% of the total contract price

c) 50 of the total contract price

d) None of the above

43 : Who will issue the Letter of Award?

a) Contract Manager

b) Head of Finance

c) Project Head

d) Any executive44 : Purchase Order and Letter of Award are same.

8/7/2019 Question Bank on Materials Management

9/12

a) Yes

b) No

45 : Who is responsible for vetting of tender documents submitted by external

funding agencies?

a) Corporate Planning department

b) Site Management Committeec) Site C&M department along with HR

d) Corporate Materials Department

46 : Current DOP operating now is

a) DOP 2004

b) DOP 2008

c) DOP 2002

d) DOP 2005

47 : In which of the following case lead time will be more?

a) LT

b) Single Tender

c) Multiple Tender

d) Open Tender48 : If the value of PI is more than ________lacs then Open Tendering is needed.

a) 5 lacs

b) 15 lacs

c) 1 crore

d) In all above cases

49 : The acronym ROL stands for

a) Requirement of Letter of Credit

b) Reorder Level

c) Report of Loss of stock

d) None

50 : MPIC stands for Materials Planning and Inventory Controla) Yes

b) No

51 : The spares that wear out or get consumed while in service are known as:

a) Consumables

b) Perishables

c) Nut and bolts

d) Accessories

52 : Find the odd one

a) MTN b) GRS c) PTW d) SRV

53 : Who are responsible for SRV pricing

a) HR b) Stores c) Purchase d) Accounts54 : Vendor development is the responsibility of

a) Purchase Department b) O&M Department c) Indenting Department d) None

55 : Tender committee will be constituted with the members from

a) Materials

b) F&A

c) Indenting

d) All above

56 : It is necessary to send a file to Vigilance department before issue of any

Purchase Order.

a) True

b) False

57 : The spare parts which are required for plant maintenance activities that mightcause forced shut down of machinery in case of non availability are known as

8/7/2019 Question Bank on Materials Management

10/12

Insurance Spares.

a) True

b) False

c) They are known as mandatory spares

58 : In Materials Management, Procurement is an area where the use of

combination of Internet Technologies can drive major efficiencies i.e.controlling cost and improving employee productivity

a) True

b) False

59 : What is a risk?

a) Risk is possibility of loss

b) Risk is uncertain

c) Risk is manageable and can be eliminated altogether

d) Only a and b.

60 : AN __________ INSURANCE IS AN INSURANCE ON PROPERTYAGAINST ACCIDENTS RESULTING IN DAMAGE TO MACHINERY ANDSTEEL STRUCTURES WHILE IN THE NORMAL COURSE OFERRECTION OR CONSTRUCTION.

a) EAR b) Comprehensive c) Fire d) Mundane

61 : In the terms EAR, E refers to

a) Erection b) Execution c) Election d) Effective

62 : P&W policy means

a) Procurement and Works

b) Purchase and waste management policy

c) Power Works policy

d) None

63 : MRR stands for

a) Material Receipt Register

b) Material Regular Ratec) Marine Receipt for Record

d) None of above

64 : Which one of the following is a rational technique ofmodern storekeeping?

a) EOQb) Value Analysisc) Accountingd) Codification

65 : The condition of destination and mode of delivery is

specified in:a) Indentb) Specificationc) Stores Receiptd) Purchase Order

66 : After unloading the material at stores, it is initially kept ata) Inspection Bayb) Outside the storesc) Sent to the indenter until inspectiond) None of the above

8/7/2019 Question Bank on Materials Management

11/12

67 : While taking delivery of material, the delivery challanshould be compared carefully with:

a) Indentb) Technical specificationc) Purchase Order

d) SRV

68 : Usually what is the time given for inspector to inspect thematerial put at the inspection bay at stores?

a) 2 daysb) 3 daysc) 4 daysd) 5 days

69 : Which of the following is not indicated in the MaterialControl Card ( Stock)?

a) Receipt dateb) Issue numberc) Balance quantityd) Indent number

70 : Which of the classification of items is based on stock-value?

a) FSNb) ABCc) DEF

d) XYZ

71 : Which of the following is not the reason for stockdiscrepancies?

a) Weighted differencesb) Measurement differencesc) Improper storaged) None of above

72 : Which of the following stock verification methods has notbeen adopted in the NTPC?

a) Periodical stock verificationb) Continuous stock verificationc) Verification by external agencyd) Verification by Internal Auditors

73 : By whom the surprise verification be done?a) A team of three officers comprising Finanace

deparment, material department, purchasedepartment

b) A team of at least two officers drawn fromdepartments other than materials department

c) By GM/Head of Projectd) By local police

8/7/2019 Question Bank on Materials Management

12/12