1. In simplex tableau, which of the following helps us to identify the basic variables?

1. The size of the basis

2. The identity columns
3. The sense of the objective function
4. The number of slack/surplus variables
correct answer 2
2. In a Linear Programming, infeasibility can be removed by
1. Adding another constraint
2. Deleting a constraint
3. Adding another variable
4. Deleting another variable
correct answer 2
3. After solving a LP model. which of the following is always true for a binding
constraint?
1. LHS of the constraint=RHS of the constraint
2. LHS of the constraint>= RHS of the constraint
3. LHS of the constraint <= RHS of the constraint
4. LHS of the constraint is not equal to RHS of the constraint
correct answer 1
4. The individual most responsible for the widespread use of interchangeable parts in
the manufacturing industry was?
1. Eli Whitney
2. Whitney Houston
3. Sergio Farmerson
4. Lillian Gilberth
correct answer 1
5. Which of these relates to the development of a product's concept or idea in terms
of the requirements needed to turn the concept into a product?
1. Product Design
2. Product Development
3. a and b
4. None of these
Correct Answer 1
6. From the beginning operations to the completed product, manufacturing facilities
are organised according to the sequence of activities. This technique is known as
1. Process production
2. Job production
3. Both of these
4. None of these
Correct Answer 1
 7. Inadequate production capacity ultimately leads to
1. Poor quality
2. Poor customer service
3. Poor inventory control
4. All of the above
Correct Answer 2
8. Why reverse logistics is required?
1. Because goods are unsold
2. Because goods are defective
3. Because goods are reusable
4. all of the above
Correct Answer 4
9. Which of these is not one of the three C’s of Supply Chain?
1. Control
2. Customer Service
3. Conversation
4. Communication
Correct Answer 1
10. Which of these is considered to be one of the primary Supply chain decision?
1. Communication
2. Cost of product
3. Location of suppliers
4. publicity
Correct Answer 3
11. Which process plays huge implication in running key operations for almost every
organization?
1. Transportation
2. Material Management
3. Reverse Logistics
4. Supply Chain Management
Correct Answer 4
12. In case of a decentralised system, which of the following is not true?
1. encourages more effective use of local knowledge
2. has short lead time
3. has to maintain a higher level of inventory
4. None of the above
Correct Answer 2
13. Which of the following industries is most likely to have low equipment
utilization?
1. Auto manufacturing
2. Commercial banking
3. Steel manufacturing
4. Restaurants
Correct Answer 4
14. Which of the following is a cause of the bullwhip effect?
1. Aligning incentives across the supply chain
2. More lead time
3. more fluctuations in price
4. both 2 and 3
Correct Answer 4
15. Which of the following contains a spanning tree for the network formed by nodes
A, B, C, D, E, F, G ?
1. BCDFG
2. BCDFE
3. BCDEFGA
4. BCFDG
Correct Answer 3
16. Two products P1 and P2 are manufactured from two specific resources R1 and R2
only. R1 has a shadow price of 100 while R2 has a shadow price of 200. P1
consumes 2 units of R1 and 3 units of R2 while P2 consumes one unit ofR1 and 1
unit of R2. What is the worth of 1 unit of P1?
1. 800
2. 600
3. 300
4. None of the above
Correct Answer 1
17. Minimise Z = 13x – 14y, subject to the constraints: x+y≤7, 2x–3y+6≥0, x≥0, y≥0 .
The optimal value of Z is
1. -20
2. -18
3. -30
4. None of the above
Correct Answer 4
18. Method/s coming under work study is/are
1. Time study
2. Method study
3. Motion Study
4. All of the above
19. George has been able to produce 240 crates per 90 logs with his current
machinery. He presently buys 90 logs per day, with each log requiring three hours
of labour. He believes he can employ a professional buyer for the same price and
get a better-quality log. If this is the case, his output can be increased to 260 crates
per 90 logs. His daily working hours will climb by 8 hours. What will be
productivity?
1. 0.88
2. 0.9
 3. 0.94
4. None of the above
Correct Answer 3
20. What would the forecast for the next period be using simple exponential
smoothing, given an actual demand of 50, a forecast of 44, and an alpha of 5?
1. 45.4
2. 44.8
3. 47.0
4. 50.0
Correct Answer 3
21. A dairy has experienced weekly demand of milk of D1, D2, D3 and D4 are 120,
127, 114 and 122 gallons respectively over past 4 weeks. Forecast demand for
period 5 using a four-period moving average. What is the forecast error if demand
in the 5th period turns out to be 125 gallons?
1. F5=120.75, Error=(+)4.25
2. F5=123.25, Error=(+)1.75
3. F5=124.75, Error=(+)0.25
4. None of the above
Correct Answer 1
22. Annual Consumption is 4000kg
Cost of buying per order is 5
Cost per unit is Rs 2 per kg
Storage and carrying out cost = 8% on average inventory
Calculate economic order quantity and no of orders to be placed each year.
1. 400, 10
2. 500, 8
3. 1000, 4
4. 300, 12
Correct Answer 2
23. Organizations must handle a variety of difficulties in order to build and maintain
efficient and successful supply chains. What exactly isn't included?
1. Complexity
2. Inventory deployment
3. Inventory carrying costs
4. Technology
Correct Answer 3
24. When skewed product demand information is sent from one entity to the next
along the supply chain, what is it called?
1. Bullwhip effect
2. Demand planning software
3. Supply chain planning software
4. Supply chain execution software
Correct Answer 1
 25. When which of the following is done, the firms will see the benefits of integrating
IT?
1. Companies need to invest heavily in information systems
2. Companies need to automate the existing supply chain systems and
processes
3. Companies need to re-engineer their supply chain structure and undertake
revision in the supporting organisational processes
4. Companies need to undertake revision in the supporting organisational
processes
Correct Answer 3
26. An effective supply chain is essential for an online shop like Amazon.com. The
company's supply chain was built to complement its well-defined marketing plan,
and it started with:
1. Inventory Forecasts
2. A logistics Mission Statement
3. The Mature stage of the Product Life Cycle
4. Understanding the customer
Correct Answer 4
27. If a customer visting a departmental store can not find his desired soap manufactured
by Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will
he hold responsible for the non-availability of the soap?
1. The logistics service provider
2. Hindustan Unilever Ltd
3. The distributor
4. The departmental store
Correct Answer 4
28. Calculate the annual usage in units, when EOQ = 360 units, order costs are $5 per order,
and carrying cost are $0.20 per unit.
1. 129600 units
2. 25920 units
3. 2592 units
4. 18720 units
Correct answer 3
29. A firm’s inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800000. If
the IT is improved to 8 times while the COGS remains the same, a substantial amount of
funds is released from or additionally invested in inventory. In fact,
1. $160,000 is released
2. $100,000 is additionally invested
3. $60,000 is additionally invested
4. $60,000 is released
Correct Answer 4
30. A local distributor for a national tire company expects to sell
approximately 38,400 steel-belted radial tires of a certain size and tread design next
 year. Annual carrying cost is $25 per tire, and ordering cost is $75. The distributor
operates 288 days a year. Find EOD and total annual cost if the EOQ quantity is ordered.
1. 300 tires, $4,800
2. 480 tires, $12,000
3. 200 tires, $6,700
4. None of the above
Correct Answer 2
31. Compute takt time, when Total time per shift is 480 minutes per day, and there are two
shifts per day. There are two 20-minute rest breaks and a 20-minute lunch break per shift.
Daily demand is 100 units.
1. 8.4 minutes per cycle
2. 10.25 minutes per cycle
3. 9.5 minutes per cycle
4. None of the above
Correct Answer 1
32. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
1. Third-party logistics
2. Supply chain collaboration
3. Dovetailing
4. Relationship Marketing
Correct Answer 3
33. Which of the following is not a characteristic of the factor-weighting approach to
supplier evaluation?
1. it applies quantitative scores to qualitative criteria
2. the weights typically sum to 100%
3. it applies qualitative assessments to quantitative criteria
4. multiple criteria can be considered simultaneously
Correct answer 3
34. Which of the following items is most likely to be stored at the back of a warehouse,
furthest away from the shipping dock?
1. low number of trips and low number of storage blocks
2. low number of trips and high number of storage blocks
3. high number of trips and low number of storage blocks
4. high number of trips and high number of storage blocks
Correct Answer 2
35. The appropriate maintenance policy is developed by balancing preventive maintenance
costs with breakdown maintenance costs. The problem is that:
1. preventive maintenance costs are very difficult to identify.
2. full breakdown costs are seldom considered.
3. preventive maintenance should be performed, regardless of the cost.
4. preventive maintenance should be performed, regardless of the cost.
Correct Answer 2
36. The job that should be scheduled last when using Johnson’s rule is the job with the:
1. largest total processing time on both machines.
 2. smallest total processing time on both machines.
3. shortest activity time if it lies with the second machine.
4. longest activity time if it lies with the second machine.
Correct Answer 3
37. Min R = 12a + 20b
Subject to
6a +8b>=100
7a+12b>=120
a,b>=0,  a is integer
The  optimal solution of the above problem is a*  and  b*. What is a*+ b*?
1. 15.45
2. 16.25
3. 16
4. None of the above
Correct Answer 2
38. A primal problem is
Max z = 5x + 10y
x +y <=15
x+2y <=25
x>=0
y>=0
a and b are dual decision variables which are non-negative. Which of the following will
be a valid constraint of the dual?
1. a-2b<=10
2. 2a-b>=5
3. a+b>=5
4. a-b>=5
Correct Answer 3
39. If a binding constraint gets changed, the optimal solution will
1. Change
2. Will not change
3. May change
4. Depends on the number of constraints present
Correct Answer 1
40. “Competitors may be gaining an edge by diversification, making forays into firm niche
market by making new and better products. Suppliers could be forming cartels and
preparing to drive hard bargains.” are the functions of?
1. Data gathering
2. Environmental scanning
3. Global condition
4. Data finding
Correct Answer 2
41. ‘Value’ in Lean terms is a deliverable to the client which is usable. Identify which
statements below qualify for this Value definition
1. Value for a recruitment group is each human resource made available to the
project teams
 2. Value for a Maintenance project is the Bugs serviced per release
3. Value for a Conversion project is every web page converted
4. All of the above
Correct Answer 4
42. Which of the below scenario can be identified as Type 2 “Waste”?
1. Waiting and searching for resources in the lab during reproduction and testing
2. Capturing relevant information in defect tracker
3. Updating knowledge base
4. Frequent build cycles, frequent code reviews and early testing
Correct Answer 1
43. The delivery team monitors the progress of tickets using white boards, automates
common tasks, keeps a checklist, and applies lessons learned from past releases. The
team is unfamiliar with Lean and has never participated in a Lean training session. Is the
project using Lean principles?
1. Yes
2. No
3. Can’t answer
4. None of the above
Correct Answer 1
44. An effective technique to keep team members informed about progress and current status
through
1. Visual Boards
2. Poka-yoke
3. Mura
4. Muri
Correct Answer 1
45. Due to a lack of clarity in the first six weeks of a maintenance project with a three-month
release cycle, the team is idle. In the next six weeks, the client expects that the team will
work as scheduled. This will lead to
1. Task switching
2. Overload
3. Poor quality
4. Both 2 and 3
Correct answer 4
46. For a 60-80 rating scale, which rating is allotted for a activity undertaken by skilled
worker at more speed, confidence and full capacity?
1. 0
2. 40
3. 100
4. 60
Correct Answer 3
47. In which of the following site selection techniques, a weightage between ‘0’ to ‘1’ is
provided to factors that influence its location decision?
1. Location rating factor technique
2. Transportation technique
3. Centre-of-gravity technique
 4. None of the above
Correct Answer 1
48. Which of the following facility layout is best suited for the intermittent type of
production, which is a method of manufacturing several different products using the same
production line?
1. Product layout
2. Process layout
3. Fixed position layout
4. Cellular manufacturing layout
Correct Answer 2
49. With reference to the characteristics of a good product design, which one of the following
is referred to “the ease of manufacture with minimum cost”?
1. Reliability
2. Productivity
3. Specification
4. Simplification
Correct Answer 2
50. Which of the following aims at finding the best and most efficient way of using the
available resources—men, materials, money and machinery?
1. Method Study
2. Work Study
3. Time Study
4. Motion Study
Correct Answer 2
51. The difference between product system and project system is:
1. Project system the equipment and machinery are fixed where as in product system
they are movable
2. In Product system the machinery and equipment are fixed and in project system
they are not fixed
3. Project system produces only standardized products and product system produces
only unstandardised products
4. Products cannot be stocked whereas projects can be stocked.
Correct Answer 2
52. What encompasses all activities associated with the flow and transformation of goods
from the raw material stage, through to the end user, as well as the associated information
flows.
1. Production Line
2. Supply Chain
3. Marketing Channel
4. Warehouse
Correct Answer 2
53. What additional factor does overall equipment effectiveness take into account which
makes it more meaningful than efficiency or utilization?
1. Flexibility
2. Speed
3. Cost
 4. Quality
Correct Answer 1
54. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in what?
1. Channel of distribution
2. Value delivery network
3. Supply chain
4. Supply and demand chain
Correct Answer 2
55. What technique deal with the problem of supply sufficient facilities to production lines or
individuals that require uneven service?
1. Supply-demand theory
2. PERT
3. Inventory theory
4. Queuing theory
Correct Answer 4
56. What is the phrase for selecting a supplier, agreeing on what to buy at a given price, and
when to acquire it?
1. Logistics
2. Supply chain management
3. Stock control
4. Procurement
Correct Answer 4

An important feature of supply

chain management is its
application of electronic
commerce
technology that allows
companies to share and operate
systems for:
An important feature of supply
chain management is its
application of electronic
commerce
technology that allows
companies to share and operate
systems for:
57. An important feature of supply chain management is its application of electronic
commerce technology that allows companies to share and operate systems for:
1. Order processing, transportation scheduling and inventory management
2. Cost effective flowing of raw materials
3. Future purchasing of computer systems
4. Future merger opportunities
Correct Answer 1
58. A recent consumer survey conducted for a car dealership indicates that, when buying a
car, customers are primarily concerned with the salesperson's ability to explain the car's
features, the salesperson's friendliness, and the dealer's honesty. The dealership should be
especially concerned with which dimensions of service quality?
1. Communication, courtesy, and credibility
2. Competence, courtesy, and security
3. Competence, responsiveness, and reliability
4. Communication, responsiveness, and reliability
Correct Answer 4
59. Marketing logistics involves getting the right product to the right customer in the right
place at the right time. Which one of the following is not included in this process?
1. Implementing the plan for the flow of goods and services
2. Planning the physical flow of goods and services
3. Controlling the physical flow of goods, services and information
4. Gathering customer’s ideas for new products
Correct Answer 4
60. Which among the following is a quantity of a specific item that is ordered from the
supplier and issued as a standard quantity to the production process?
 1. Safety stock
2. Lot size
3. Standard deviation
4. Inventory control
Correct Answer 2
61. Which of the following code sets include all standard alphanumeric keyboard characters
along with lower case alpha and special characters?
1. Code set A
2. Code set B
3. Code set C
4. Code set D
Correct Answer 2
62. Identify the measure taken to deal with the issues relating to not having the right item at
the right place at the right time.
1. Increase on-hand safety stock
2. Increase the inventory stock
3. Decrease the inventory stock
4. Decrease the safety stock
Correct Answer 1
63. The time period between placing two successive orders is called ___ and the time period
between ordering an item for replenishment and actually receiving the item into the
inventory is called ___.
1. Lead time, order cycle
2. Order cycle, lead time
3. OTC cycle, idle time
4. Idle time, OTC cycle
Correct Answer 2
64. 1. Safety stock can be set in weeks or units of stock at the simplest level.
2. The larger the lot size, the fewer is the number of lots required, and hence
higher is the annual set-up cost.
State True or False
1. 1-False, 2-True
2. 1-True, 2-True
3. 1-True, 2-False
4. 1-False, 2-False
Correct Answer 3
65. At its year-end, Crocodile Ltd. has 600 items of product A and 2,000 of product B,
costing $10 and $5, respectively. The following information is available: 500 items of
product A are defective and can only be sold at $8 each; 100 items of product B are to be
sold for $4.50 each with selling expenses of $1.50 each. What figure should appear in
Crocodile's statement of financial position for the inventory?
1. $57,000
2. $68,950
3. $68,800
4. $70,000
Correct Answer C
 66. Your firm's inventory valuation method is AVCO. On 1 June, there were 60 units in the
inventory valued at $12 each. On 8 June, 40 units were purchased for $15 each and a
further 50 units were purchased for $18 each on 14 June. On 21 June, 78 units were sold
for $20 each. What is the value of the closing inventory on 30 June?
1. $1,110
2. $1,010
3. $900
4. $1,125
Correct Answer 1
67. Profit forgone by capital investment in inventory rather than investment of capital to
somewhere else is classified as
1. Relevant purchase order costs
2. Relevant inventory carrying costs
3. Irrelevant inventory carrying costs
4. Relevant opportunity cost of capital
Correct Answer 4
68. If required rate of return is 12% and per unit cost of units purchased is $35 then relevant
opportunity cost of capital will be
1. $6.20
2. $7.20
3. $4.20
4. $5.20
Correct Answer 3
69. If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is
$6700 then relevant incremental cost will be
1. $9,650
2. $2,350
3. $3,750
4. None of the above
Correct Answer 3
70. If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is
2 days, the ROP will be:
1. 84
2. 46
3. 42
4. None of the above
Correct Answer 2
71. If the minimum stock level and average stock level of raw material ‘A’ are 4,000 & 9,000
emits respectively, what is its reorder quantity
1. 8,000 units
2. 11,000 units
3. 10,000 units
4. 9,000 units
Correct Answer 3
72. Under which of the following inventory control technique, the maximum and minimum
level of each stock is laid down
 1. Min-max plan
2. Two bin system
3. Order cycle system
4. ABC analysis
Correct Answer 1
73. In a situation of rising prices, profit and tax liability would be lower under method than
under method of material issue pricing.
1. FIFO; LIFO
2. LIFO; FIFO
3. LIFO; Average
4. FIFO; Average
Correct Answer 2
74. Normal usage 50 units per week, maximum usage 75 units per week, reorder period 4 to
6 weeks. The minimum level of stock will be
1. 250 Units
2. 150 Units
3. 450 Units
4. 200 Units
Correct Answer 4
75. The rate per kg of material P, Q, R & S are respectively ₹ 12,₹ 15,₹ 18 & ₹ 21. The
input-output ratios of the material are 140%, 130%, 120% & 110% respectively. The
most economical material for production is:
1. P
2. Q
3. R
4. S
Correct Answer 1