Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Summer 4th Sem 2831101 Inventory Management Materials Planning And Management Previous Question Paper
Seat No.: _________________ Enrollment No.: ______________________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART-TIME) ? SEMESTER (4) ? EXAMINATION ? SUMMER 2018
Subject Code: 2831101 Date: 03/05/2018
Subject Name: Inventory Management, Materials Planning and Management
Time: 2.30 pm to 5.30 pm Total Marks: 70
Instructions: 1) Attempt all questions.
2) Make suitable assumptions wherever necessary.
3) Figures on the right side marks for the respective question.
Q.1 (a) Answer the following multiple choice questions: 06
1.
SKU means _____________________________.
A. Stock Keeping Universe. B. Stock Keeping Unit.
C. Stock Kept Universal. D. Stock Keeper?s Unit.
2. EOQ means ____________________________.
A. Economical Order Quality. B. Economics Ordered Quantity.
C. Economic Order Quality. D. Economic Order Quantity.
3. BOM stands for _________________________.
A. Bills of Materials. B. Billing of Materials.
C. Bags of Materials. D. Bins of Materials.
4. Which one of the following is not a Inventory Control Method (System)?
A. ABC Analysis. B. GOLF Analysis.
C. VED Analysis. D. DEF Analysis.
5. Which one of the following is not a Materials Coding System?
A. Decimal System. B. Alpha-numeric System.
C. British System. D. Kodak System.
6. ROI stands for ____________________.
A. Return on Inventory. B. Rate of Interest.
C. Rate of Investment. D. Return on Investment.
Q.1 (b)
Define following terms briefly:
04
1. Variable Costs.
2. Inventory Turnover.
3. Warehousing.
4. Inventory Control.
Q.1 (c) What are the major benefits of standardization of materials? 04
Q.2 (a) What are the primary and secondary objectives of Materials Management? 07
(b) Explain any 2 of the principal systems of codification of materials with
examples.
07
OR
(b) Explain the Probabilistic Inventory Models with an example. 07
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Page 1 of 3
Seat No.: _________________ Enrollment No.: ______________________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART-TIME) ? SEMESTER (4) ? EXAMINATION ? SUMMER 2018
Subject Code: 2831101 Date: 03/05/2018
Subject Name: Inventory Management, Materials Planning and Management
Time: 2.30 pm to 5.30 pm Total Marks: 70
Instructions: 1) Attempt all questions.
2) Make suitable assumptions wherever necessary.
3) Figures on the right side marks for the respective question.
Q.1 (a) Answer the following multiple choice questions: 06
1.
SKU means _____________________________.
A. Stock Keeping Universe. B. Stock Keeping Unit.
C. Stock Kept Universal. D. Stock Keeper?s Unit.
2. EOQ means ____________________________.
A. Economical Order Quality. B. Economics Ordered Quantity.
C. Economic Order Quality. D. Economic Order Quantity.
3. BOM stands for _________________________.
A. Bills of Materials. B. Billing of Materials.
C. Bags of Materials. D. Bins of Materials.
4. Which one of the following is not a Inventory Control Method (System)?
A. ABC Analysis. B. GOLF Analysis.
C. VED Analysis. D. DEF Analysis.
5. Which one of the following is not a Materials Coding System?
A. Decimal System. B. Alpha-numeric System.
C. British System. D. Kodak System.
6. ROI stands for ____________________.
A. Return on Inventory. B. Rate of Interest.
C. Rate of Investment. D. Return on Investment.
Q.1 (b)
Define following terms briefly:
04
1. Variable Costs.
2. Inventory Turnover.
3. Warehousing.
4. Inventory Control.
Q.1 (c) What are the major benefits of standardization of materials? 04
Q.2 (a) What are the primary and secondary objectives of Materials Management? 07
(b) Explain any 2 of the principal systems of codification of materials with
examples.
07
OR
(b) Explain the Probabilistic Inventory Models with an example. 07
Page 2 of 3
Q.3 (a) Explain the EOQ model for Inventory Control. Graphically represent the EOQ
point.
07
(b) What is reordering point? What are the benefits of having safety stocks? 07
OR
Q.3 (a) Elaborate about the Just-In-Time system & Vendor Managed Inventory system
for inventory management.
07
(b) Explain the selective inventory control techniques with norms and their
applications.
07
Q.4 (a) What is Materials Requirement Planning? Explain the three major inputs for
Material Requirement Planning system to function.
07
(b) As a manager how will you look at evaluating how efficient is your inventory
control systems?
07
OR
Q.4 (a) How are you going to evaluate the performance of the Purchasing Department? 07
(b) What are the major factors that affect inventory levels and its management
within an organization?
07
Q.5
Discuss the case study with answers of following questions. 14
Mr. Harish Mangla, owner and manager of Mangla Engineering Co., a medium
sized maker of industrial products, studied a report from Er. Mittal, product
designer and manager of the small pump, the company?s major product. The
report attributed the customer?s complaints about breakdowns to several
purchased parts and sub-assemblies, which had been subsequently machined in
Mangla?s plant. Er. Mittal blamed both ?careless manufacturing and poor quality
materials? for the failure, and stated that the product?s success was built on ?a
reputation for quality, precision, and trouble-free operation.?
Khandekar, manager manufacturing, observed that ?quality control and
inspections costs had soared since he had to put three extra workers on
inspection, as sub-assembly and material quality had deteriorated. There was Rs.
25,654 in rework and overtime here that upset his budget.?
Then, Dolly Shaw, purchasing manager, met Harish and said, ?Several of our
suppliers had told me that they have bitter complaints on the quality of their
products from the crowd in the quality control and inspection and receiving
departments in manufacturing. According to them, the material was all right as
shipped. It is not my job to receive and inspect materials ? that?s up to
manufacturing. But if suppliers are not living up to the specifications on the
purchasing order, I want to know about it. Manufacturing should not go behind
my back to threaten the suppliers. This has to stop, or I will never be able to get
consistent quality from suppliers with everybody calling them.?
Mr. Harish Mangla recognized that he had not yet resolved these
interdepartmental conflicts. Marketing would try to set specifications as high as
possible to ensure 100 percent customer satisfaction; manufacturing would try to
pass rework costs and responsibilities for any materials troubles onto the
purchasing as poor supplier quality, or to the marketing department as setting
unattainable specifications; and purchasing would complain that sloppy
machining as assembly or careless inspection caused the trouble. Harish sent a
note to Dolly, Er. Mittal and Khandekar:
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Seat No.: _________________ Enrollment No.: ______________________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART-TIME) ? SEMESTER (4) ? EXAMINATION ? SUMMER 2018
Subject Code: 2831101 Date: 03/05/2018
Subject Name: Inventory Management, Materials Planning and Management
Time: 2.30 pm to 5.30 pm Total Marks: 70
Instructions: 1) Attempt all questions.
2) Make suitable assumptions wherever necessary.
3) Figures on the right side marks for the respective question.
Q.1 (a) Answer the following multiple choice questions: 06
1.
SKU means _____________________________.
A. Stock Keeping Universe. B. Stock Keeping Unit.
C. Stock Kept Universal. D. Stock Keeper?s Unit.
2. EOQ means ____________________________.
A. Economical Order Quality. B. Economics Ordered Quantity.
C. Economic Order Quality. D. Economic Order Quantity.
3. BOM stands for _________________________.
A. Bills of Materials. B. Billing of Materials.
C. Bags of Materials. D. Bins of Materials.
4. Which one of the following is not a Inventory Control Method (System)?
A. ABC Analysis. B. GOLF Analysis.
C. VED Analysis. D. DEF Analysis.
5. Which one of the following is not a Materials Coding System?
A. Decimal System. B. Alpha-numeric System.
C. British System. D. Kodak System.
6. ROI stands for ____________________.
A. Return on Inventory. B. Rate of Interest.
C. Rate of Investment. D. Return on Investment.
Q.1 (b)
Define following terms briefly:
04
1. Variable Costs.
2. Inventory Turnover.
3. Warehousing.
4. Inventory Control.
Q.1 (c) What are the major benefits of standardization of materials? 04
Q.2 (a) What are the primary and secondary objectives of Materials Management? 07
(b) Explain any 2 of the principal systems of codification of materials with
examples.
07
OR
(b) Explain the Probabilistic Inventory Models with an example. 07
Page 2 of 3
Q.3 (a) Explain the EOQ model for Inventory Control. Graphically represent the EOQ
point.
07
(b) What is reordering point? What are the benefits of having safety stocks? 07
OR
Q.3 (a) Elaborate about the Just-In-Time system & Vendor Managed Inventory system
for inventory management.
07
(b) Explain the selective inventory control techniques with norms and their
applications.
07
Q.4 (a) What is Materials Requirement Planning? Explain the three major inputs for
Material Requirement Planning system to function.
07
(b) As a manager how will you look at evaluating how efficient is your inventory
control systems?
07
OR
Q.4 (a) How are you going to evaluate the performance of the Purchasing Department? 07
(b) What are the major factors that affect inventory levels and its management
within an organization?
07
Q.5
Discuss the case study with answers of following questions. 14
Mr. Harish Mangla, owner and manager of Mangla Engineering Co., a medium
sized maker of industrial products, studied a report from Er. Mittal, product
designer and manager of the small pump, the company?s major product. The
report attributed the customer?s complaints about breakdowns to several
purchased parts and sub-assemblies, which had been subsequently machined in
Mangla?s plant. Er. Mittal blamed both ?careless manufacturing and poor quality
materials? for the failure, and stated that the product?s success was built on ?a
reputation for quality, precision, and trouble-free operation.?
Khandekar, manager manufacturing, observed that ?quality control and
inspections costs had soared since he had to put three extra workers on
inspection, as sub-assembly and material quality had deteriorated. There was Rs.
25,654 in rework and overtime here that upset his budget.?
Then, Dolly Shaw, purchasing manager, met Harish and said, ?Several of our
suppliers had told me that they have bitter complaints on the quality of their
products from the crowd in the quality control and inspection and receiving
departments in manufacturing. According to them, the material was all right as
shipped. It is not my job to receive and inspect materials ? that?s up to
manufacturing. But if suppliers are not living up to the specifications on the
purchasing order, I want to know about it. Manufacturing should not go behind
my back to threaten the suppliers. This has to stop, or I will never be able to get
consistent quality from suppliers with everybody calling them.?
Mr. Harish Mangla recognized that he had not yet resolved these
interdepartmental conflicts. Marketing would try to set specifications as high as
possible to ensure 100 percent customer satisfaction; manufacturing would try to
pass rework costs and responsibilities for any materials troubles onto the
purchasing as poor supplier quality, or to the marketing department as setting
unattainable specifications; and purchasing would complain that sloppy
machining as assembly or careless inspection caused the trouble. Harish sent a
note to Dolly, Er. Mittal and Khandekar:
Page 3 of 3
?The quality problem has apparently got out of hand all along the line from
materials to production installation. Please meet me in my office at 9.00 am,
Monday, and come prepared to discuss and recommend means of tiding over the
present crisis.?
Questions:
1. Do you think that the arguments presented by all the three, Er. Mittal,
Khandekar and Dolly Shaw are reasonable? Justify.
2. As Mr. Harish Mangla, how would you resolve this issue after listening to
the arguments of the three managers?
OR
Q.5
Discuss the case study with answers of following questions. 14
Mr. Gurmeet Singh was the purchase manager at Four Square?s saw mill. One
day, he saw a travelling requisition (TR) card for 10 carborundum saw blades.
The specified blade was made in Switzerland and obtainable through a mill
supply house in the UK at a cost of Rs. 2,250 each, f.o.b. Mumbai. Gurmeet
observed on the TR that some 110 blades were ordered every year. The
requisition specified that no substitutes were permitted. Even so, Gurmeet
decided to see if any money could be saved through alternative sourcing. He
contacted two of his better mill supply sources to see what they could do.
Both the suppliers were of the view that the Miranda 412 blade was every bit as
good as its Swiss counterpart. Based on an annual purchase of eighty or more
blades, on supplier quoted a unit price of Rs. 1,125 per blade f.o.b Mumbai. The
second supplier?s price was Rs. 1,150 per blade f.o.b Mumbai.
Gurmeet then contacted Shamlal Suthar, the foreman of sawing operations at
Four Square. Gurmeet explained the potential savings and asked Shamlal to give
the Indian blade a try. Shamlal was certain that the Miranda blade would not
stand up to the Swiss blade. After a lot of convincing Shamlal agreed skeptically
saying, ?OK, but I am sure it won?t work.? Shamlal ordered 10 Miranda blades.
He included a provision that any unused blades could be returned or credit if the
Miranda did not prove to be equal to the Swiss blade. Two days after the blades
arrived, Shamlal entered Gurmeet?s office. Shamlal was grinning from ear to ear,
holding a saw blade in each hand and said, ?Both the blades were burnt as a result
of the excess heat generated during the cutting operations.? Gurmeet was
convinced that the boys in the cutting shop had treated the blades unfairly to
ensure their failure.
Questions:
1. Why does Gurmeet think that Shamlal and his boys have purposefully
treated the blades badly to ensure their failure? What could be the reason
for Shamlal to do this?
2. If you were Gurmeet, what would you have done well in advance to avoid
any such unreasonable situation to arise? What can you do now to resolve
this issue?
************
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This post was last modified on 19 February 2020