INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management.
PAPER No. 10
INVENTORY MANAGEMENT
Date 14.06.2018 Max. Marks :100
Time 10.00a.m. to 1.00 p.m. Duration 3 Hrs.
Instructions:
1. The question paper is in three parts B C.
2. Part A is compulsory. Each question carries one mark. Total 32 Marks
3. In Part answer 3 questions out of 5. Each question carries 16 marks.Total 48 Marks
4. Part C is a case study with sub questions and it is compulsory. It carries 20 marks.
5. Use of calculator is allowed wherever necessary.
6. Graph sheets can be used wherever necessary.
Part A (compulsory) 32 marks
(Attempt all questions each question carries 1 mark)
Q1. State TRUE or FALSE 1 Mark each Marks)
1. Inventory management does not make decisions or manage operations.
2. Purchase of materials and services involves less expenditure than other items like wages,
depreciation, taxes etc
3. Activity based costing is mainly used in warehouse planning and administration.
4. PQR classification is based on stock value of materials..
5. Longer lead time items require more safety stocks.
6. Dependant items can be calculated based on production schedule.
7. Trade-In is a method of disposal of surplus goods.
8. LIFO method of stock valuation is most suitable in case of falling prices.
Q2. Fill in the Blanks 1 Mark each Marks)
1. Stock in trade are
2. ROI means net income divided by
3. Insurance and capital spares have life of machine.
4 of material is used to carry out ABC analysis.
5 Exponential smoothing technique has value of alpha
6 EOQ fails when goods in question are
7 Imprest stock control system uses for receipt of materials.
8 Locating warehouse nearest to customers is called approach.
June 2018
Q3. A. Expand the following abbreviations mark each) 8 Marks
1. FIFO 2. SDE(classification) 3. BOM 4. ERP.
5. WIP 6. JIS(standard) 7. MRO(items) 8. RFQ
Q4. Match the following in column A with those in column B 1 Mark each Marks)
A
B
1. Hazardous materials
A. Quantitative technique
2. VED classification
B. Develops material schedule.
C. MRP
3. 20% of stock value.
.
4. Inventory records file.
D. MSDS
5. Buyer-Planner
E. Process costing
6. Normal loss.
F. Spare parts management.
7. Time series analysis
G. Under stocking cost.
8. KU
H. Y-items.
PART B
Write any three of the following questions 16 marks each (48 Marks)
Q5. Which, according to you, is the most important analysis in inventory management? Explain why?
Q6. How will you decide safety stocks of various items in stores? Explain criteria.
Q7. Write short notes on any two.. 2 x 8 16 marks)
Insurance and capital spares.
Two-Three bin systems.
Vendor managed inventory system.
Disposal of surplus inventory.
Q8. Which is the best system of stock valuation? Explain with reasons.
Q9. How MRP system is different from other inventory management systems? Where is it more applicable?
PART C
Q. 10 compulsory (20 marks)
A process manufacturing company has a turnover of Rs.500 crores. It has investment of Rs. 100 crore in plant and machinery.
Questions:
What should be ideal inventory of spare parts?
How will you classify spares and decide its inventory levels and ordering process for spares?