INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management.
PAPER No. 10
INVENTORY MANAGEMENT
Date 16.12.2016 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. Objectives of inventory control are maximizing customer service and minimizing cost.
2. Finished goods are "Stock in trade" goods.
3. Leased machine is not a concept of VMI.
4. ABC analysis is based on stock value of goods.
5. Computation of understocking cost is very problematic.
6. Independent demand items can be calculated based on production schedule..
7. Seasonal goods cannot be ordered using EOQ.
8. Fixed time period model of inventory management has less inventory compared to fixed order
quantity model.
Q2. Fill in the Blanks 1 Mark each Marks)
1. Safety stock takes care of demand and supply.
2. Codification helps in inventory.
3. Historical analogy is of demand forecasting.
4. material is used to carry out HML analysis.
5. Seasonal products are examples of inventory models.
6. In 3 bin system lower bin is split into 2 bins containing
DEC 2016
7. of Materials is used to segregate common from unique or peculiar parts
8. are generally expensive and with a long lead time.
Q3. A. Expand the following abbreviations mark each) 8 Marks
1. SIT 2. MPS 3. LIFO 4 ASRS.
5. VED(Anaysis) 6. ASME 7.SOS(classification). 8. ABM.
Q4. Match the following in column A with those in column B 1 Mark each Marks)
A
B
1. MSDS
A. Disposal method.
2. Market Research
B. Safety stock.
3. 70% of stock value.
C. MRP.
4. Scrap/ Salvage
D. Hazardous material.
5. Demand fluctuation
E. Demand forecasting.
6. MPS
F. Standardization.
7. BIS
G. Imprest stock control.
8. Open stores system..
H. X-items..
PART B
Write any three of the following questions 16 marks each (48 Marks)
Q5. Why inventory control is important? Explain in your own words.
Q6. How many items in your industry, can you convert into vendor managed inventory? Explain why and
how you will do it.
Q7. Write short notes on any two..
Types of inventory..
Standardization Variety reduction.
Multi period inventory models..
Warehouse location acquisition.
Q8. Which is the best system of inventory management? Explain with reasons.
Q9. How will you combine ABC analysis with SDE classification to determine inventory levels?.
Show with chart.
PART C
Q. 10 compulsory (20 marks)
A company buys a bearing at Rs.40 per piece and has requirement of 400 bearings in a year. Ordering cost is Rs. per order. Inventory carrying cost is 20%.
Questions:
1. Find EOQ, number of orders per year and average inventory level..
If the seller offers discount of Rs. 10 per bearing for purchase of 200 bearings at a time, What should the company do and marks.
2. Please also explain limitations of marks.