MATERIAL MANAGEMENT CDC
VOLUME 1 QUESTIONS AND ANSWERS
GRADED A+
Why is inventory control important in material management?
a) To keep inventory levels high
✔✔b) To maintain an optimal balance between supply and demand
c) To only purchase when necessary
d) To ensure materials are always overstocked
What does the term "just-in-time" inventory refer to?
a) Ordering in bulk
b) Stocking up on materials for future use
✔✔c) Materials being delivered just before they are needed for production
d) Overstocking to avoid running out
Why is supplier relationship management crucial for material management?
a) To ensure suppliers are always available
b) To negotiate higher prices
1
,c) To ensure suppliers deliver subpar materials
✔✔d) To maintain an ongoing and efficient supply chain
What is the role of a material requirements plan (MRP)?
a) To increase storage space
b) To predict future inventory shortages
✔✔c) To plan the production of materials in advance
d) To determine material availability
What does the term "lead time" refer to in material management?
a) The time spent processing an order
b) The time it takes to produce an item
✔✔c) The time between order placement and delivery
d) The time spent calculating demand
How can material managers reduce costs associated with inventory?
a) By increasing purchase orders
b) By maintaining larger inventories
2
,✔✔c) By reducing waste and optimizing stock levels
d) By limiting supplier choices
What is the purpose of conducting an inventory audit?
a) To check the quality of materials
b) To determine supplier pricing
✔✔c) To ensure material records match physical stock
d) To find new suppliers
What is the main benefit of using barcoding in material management?
a) It decreases the need for software
✔✔b) It allows materials to be tracked easily and accurately
c) It reduces the number of employees needed
d) It increases storage space
Why is forecasting demand critical for material management?
a) It increases production time
✔✔b) It ensures production continues without interruption
3
, c) It leads to purchasing unnecessary materials
d) It reduces production efficiency
What is the purpose of a bill of materials (BOM) in material management?
a) To determine product pricing
b) To calculate labor costs
c) To outline production costs
✔✔d) To specify the materials needed for production
Why is effective waste management important in material management?
a) It helps increase inventory levels
b) It ensures unused materials are stored for future use
✔✔c) It reduces material costs and waste
d) It promotes inefficient resource use
How can material managers improve supplier performance?
a) By reducing supplier contracts
b) By maintaining poor communication
4
VOLUME 1 QUESTIONS AND ANSWERS
GRADED A+
Why is inventory control important in material management?
a) To keep inventory levels high
✔✔b) To maintain an optimal balance between supply and demand
c) To only purchase when necessary
d) To ensure materials are always overstocked
What does the term "just-in-time" inventory refer to?
a) Ordering in bulk
b) Stocking up on materials for future use
✔✔c) Materials being delivered just before they are needed for production
d) Overstocking to avoid running out
Why is supplier relationship management crucial for material management?
a) To ensure suppliers are always available
b) To negotiate higher prices
1
,c) To ensure suppliers deliver subpar materials
✔✔d) To maintain an ongoing and efficient supply chain
What is the role of a material requirements plan (MRP)?
a) To increase storage space
b) To predict future inventory shortages
✔✔c) To plan the production of materials in advance
d) To determine material availability
What does the term "lead time" refer to in material management?
a) The time spent processing an order
b) The time it takes to produce an item
✔✔c) The time between order placement and delivery
d) The time spent calculating demand
How can material managers reduce costs associated with inventory?
a) By increasing purchase orders
b) By maintaining larger inventories
2
,✔✔c) By reducing waste and optimizing stock levels
d) By limiting supplier choices
What is the purpose of conducting an inventory audit?
a) To check the quality of materials
b) To determine supplier pricing
✔✔c) To ensure material records match physical stock
d) To find new suppliers
What is the main benefit of using barcoding in material management?
a) It decreases the need for software
✔✔b) It allows materials to be tracked easily and accurately
c) It reduces the number of employees needed
d) It increases storage space
Why is forecasting demand critical for material management?
a) It increases production time
✔✔b) It ensures production continues without interruption
3
, c) It leads to purchasing unnecessary materials
d) It reduces production efficiency
What is the purpose of a bill of materials (BOM) in material management?
a) To determine product pricing
b) To calculate labor costs
c) To outline production costs
✔✔d) To specify the materials needed for production
Why is effective waste management important in material management?
a) It helps increase inventory levels
b) It ensures unused materials are stored for future use
✔✔c) It reduces material costs and waste
d) It promotes inefficient resource use
How can material managers improve supplier performance?
a) By reducing supplier contracts
b) By maintaining poor communication
4
