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Interview Questions Material Requirement Planning: Store

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38 views37 pages

Interview Questions Material Requirement Planning: Store

Uploaded by

Stickybeak
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTERVIEW QUESTIONS

Material Requirement Planning


Q1.What's the best way to predict customer demand patterns?
Ans. The key step in predicting demand patterns is analyzing data that the company has
collected over the years, for example, through store scanners. The passive demand
forecasting allows to determine how the demand patterns for specific products may change
each season. I believe that this technique would be the best for your company because your
products have seasonal fluctuations. It would also help management put focus on financial
stabilization before implementing new growth strategies.

Q2. In your opinion, how can this company benefit from internal business forecasting?
Ans. Internal business forecasting puts focus on the company's operations and allows us to
analyze its internal capacity. This forecasting method could be useful for your company
because it might uncover new facts that have been limiting its growth. It's also a great way to
highlight new internal areas of opportunity. Lastly, it could be a great forecasting tool for your
business because it allows management to make projections that are realistic.

Q3. What are some essential qualities of an effective material planner?


Ans.An effective material planner is someone who's results-oriented, enjoys a fast-paced
work environment and wants to use their organizational and analytical thinking skills to help
companies smooth out their production processes. It's important for material planners to
work well within a team and have strong written and verbal communication skills, which allow
them to build positive relations with suppliers while maintaining the company's good
reputation. On top of these soft skills, a good material planner is someone who demonstrates
proficiency in using management and planning software and has experience in forecasting,
management, investing or inventory planning.

Q4.What Is an Order Quantity?


Ans. An order quantity is the amount of goods that an order requests be shipped to the
store.

Q5. Explain What Should Be Recorded in A Physical Count of Inventory?


Ans.When conducting a physical inventory, the classification, location and number in stock
of a good should be recorded.
Q6. What Are Important Steps in Procurement Life Cycle?
Ans. Procurement Process starts with gathering requirements, then creating a purchase
requisition and then we create a formal document that has to be sent to vendor i.e., purchase
order. After these goods will be supplied by vendor and goods receipt is done along with
invoice verification. Then vendor is paid for supplied goods and services.

Q7. What Is Lead Time?


Ans.Lead time is the period of time from which a order for goods is placed until it is received
by the store. Lead time is an important consideration for determining when orders should
be placed.

Q8. What Is Demand?


Ans.Demand is the quantity that customers are willing to buy. Demand can be found
through forecasting and is needed to find the EOQ level.

Q9. What Types of Forecasting Can I Do?


Ans. There are two types of forecasting qualitative and quantitative. Qualitative uses
personal opinions to determine forecasts. Quantitative uses numerical data and statistical
modelling to determine forecasts.

Q10. What Is Forecasting?


Ans.Forecasting is the process of estimating the future demand of a product.

Q11. What Are Batches and How Are They Searched?


Ans. A batch is a collection of similar items from your stock that have the same
characteristics. For example, all food items produced on a particular day belong to one
batch.
Batches are searched using the standard facility (match code, key F4) based on the batch
names or other properties that distinguish them from others.

Q12. What Makes a Good Forecasting Model?


Ans. A good forecast model will have reasonable costs. the accuracy of its forecasts will
allow good decision making. The model will have ample data available for its use and a
relevant time span. The model finally will have a low interference level.
Q13.What Are the Various Functions /features In Purchasing?
Ans.The purchasing view consists of RFQ / Quotation, Purchase Requisition (PR), Purchase
Order (PO), Master Data that has several fields like info record, source list, conditions,
vendors etc. and finally Outline Agreements.

Q14. What Is A RFQ And How It Is Different from Quotation?


Ans. RFQ is request for quotation and it is a form of invitation that is sent to vendors to
submit quotation indicating pricing and their terms and conditions while quotation is a reply
by a vendor in response to request for quotation.

Q15. When Should Reorders Be Placed?


Ans. Times for reordering goods vary dependent on the control system you use and its lead
time. In fixed order quantities reorders should be placed when the safety stock is reached.
In fixed period systems the reordering is done at set time periods. In just in time systems
reordering is based on matching the demand with supply. For just in time a close watch on
inventory levels is needed so that reorders are placed before goods are out of stock.

Q16. What Are Transactions That Will Cause Change in Stock?


Ans. Goods receipt and goods issue will cause change in stock as goods receipt will increase
warehouse stock and goods issue will decrease warehouse stock.

Q17. If Inventory Controls Are Followed, What Can I Expect?


Ans.By following your inventory policy you should be able to realize important advantages
in inventory control. The first is reduced costs for inventories, along with reduced amounts
of inventory. Theft and shrinkage should also be reduced if inventory policy is followed. The
final benefit will be increased profits for the store.

Q18. What Is Material Type?


Ans.Materials with some common attributes are grouped together and they are assigned to
a material type. This will differentiate materials and allow organization to manage different
materials in systematic manner in accordance to company's requirement.

Q19. What Are the Different Kinds of Special Stocks Available?


Ans.Special stocks available are consignment stocks (from vendor), subcontracting stocks
(to sun-contractor), project stocks, pipeline materials, sales order stocks, stock transfer and
third party.

Q20. Suppose If I Get A Discount Will It affect The EOQ Model?


Ans. Yes, a discount will cause the basic EOQ model to fail. To use a discount in determine
a EOQ you must use the EOQ model with quantity discounts.
Q21. What Is Material and Vendor Data Available at All Organizational Levels?
Ans. Yes, material and vendor data are available at all levels as it is normally created for
company and it is valid for the levels below company.

Q22. Explain How Stock Is Being Transferred from One Plant to Another Plant?
Ans. Stock within plants is transferred with the help of stock transport order. One plant
orders the goods internally from another plant (receiving plant/issuing plant) with the help
of stock transport order.

Q23. What Is Release Procedure?


Ans. Release procedure means approval of documents like purchase orders and purchase
requisition manually by the criteria defined in the configuration.

Q24. What Is the EOQ Formula?


Ans. The EOQ formula is the square root of 2 times demand times order completion cost
divided by carrying cost. The mathematical formula is square root of 2DS/C.

Q25. When Should a Physical Inventory Be Taken?


Ans. A inventory should be taken at least once a year. If items are perishable, seasonal or
highly demanded an inventory should be taken more often.

Q26. What Do You Mean by Consignment Stock?


Ans. In Consignment, material is available at our store premises, however it still belongs to
the vendor(seller)/Owner of the material. If you utilize the material from consignment
stocks, then you have to pay to the vendor.

Q27. Does The Model Always Work?


Ans. No, the model only works for those cases that meet its assumptions.

Q28. How Do You Create a Pricing Procedure?


Ans. The steps involved in creating a pricing procedure are:
 Create condition tables.
 Create access sequence according to the various condition tables.
 Create condition types.
 Assign access sequence to condition type.
 Create the pricing procedure.
 List down all the condition types in order so as to suit the business and
pricing requirements.
Q29. If You Have Multiple Line Items in Purchase Order, Can You Release Line By Line That
Purchase Order?
Ans. No, release is done only at header level in a combined way for all line items in case of
purchase order.

Q30. What Is the Difference Between a Contract And Scheduling Agreement?


Ans. While a scheduling agreement is for consignment, subcontracting and stock transfer, a
contract is for Standard items and can be limited to a certain quantity or value.
A contract can be created centrally with different pricing conditions for every plant whereas
a scheduling agreement needs to be created at that particular plant location. In a contract,
only time-dependant conditions can be created whereas in a scheduling agreement, you can
have time-dependant or time-independent conditions subject to the customizations in the
document type.

Q31. Can A Computer Help in Forecasting Future Demand?


Ans. Yes, In the market today there are many computers software packages that can
compute forecasted demand for goods held in inventory.

Q32. Explain The Importance of EOQ?


Ans. The EOQ level is the point at which stocking costs are at their lowest point for a given
item.

Q33. What Is Source List?


Ans. Source list include list of possible sources of supply for a material over a given
framework of time. A particular material can be ordered from different vendors in different
time intervals. This information can be maintained in a source list.

Q34. What Makes EOQ Work for Inventory Control?


Ans. The EOQ works if its four assumptions match the case it is used on. The assumptions
are:
 Annual demand, carrying costs and ordering costs can be estimated.
 Inventory level is divided by 2, no safety stock, goods used uniformly and are gone
by next order.
 Stock-out, customer responsiveness and other costs not considered.
 No quantity discounts.

Q35. What Does EOQ Stand For?


Ans. EOQ stands for Economic Order Quantity.
Q36. Explain What Is Invoice Verification?
Ans. Once goods are procured from vendor and placed in company's premises through
goods receipt then we need to pay to vendor for acquired goods and services. The amount
to be paid along with details of material is provided by vendor in form of document that is
known as invoice. Before paying to vendor, we need to verify the invoice. This process of
verifying invoice and paying to vendor is known as invoice verification.

Q37. Explain What Do You Mean by Reservation?


Ans. Sometimes, stock need to be blocked in advance so that it can be available at a
particular point of time. This is known as reservation. Reservation ensures that stock is
available and it can be used when required. Reserved quantity can be viewed by tcode
MMBE.

Q38. What Is the Importance Of EOQ?


Ans. The EOQ level is the point at which stocking costs are at their lowest point for a given
item.

Q39. What Are the Types of Reordering Systems That Can Be Used In Inventory Control?
Ans. There are several types of reordering systems, in this module we discussed three. The
fixed order quantity uses fixed quantities of goods ordered at various order points to
replenish inventory. The fixed order period uses fixed times of reorder with various order
quantities to replenish inventory to preset levels. The final system, just in time uses a
constant flow of goods to match the level of demand.

Q40. Explain What Are Some of The Movement Types for Stock Transport Order?
Ans. One step transfers of materials can be posted using movement type 301. Other
movement types are 303, 351, 641, or 643 in the stock transport order.

Q41. What Is Difference Between Planned and Unplanned Services?


Ans. In planned services at the time of procurement specifications like quantity and price
are known in advance. It means nature and scope of service is clear before procurement
whereas in unplanned services at the time of procurement specifications like quantity and
price are not known in advance. It means nature and scope of service is not clear before
procurement. These services can be extended as per the requirement.

Q42. What Do You Mean by Outline Agreement?


Ans. Outline agreement is a long-term purchasing agreement with vendor containing terms
and conditions regarding the material that is supplied by vendor. Outline agreement are
valid up to certain period of time and cover a certain predefined quantity or value.
Q43. What Is Inventory Control?
Ans. Inventory control is the process of reducing inventory costs while remaining responsive
to customer demands. By this definition a store would want to lower its acquisition, carrying
ordering and stock-out costs to their lowest possible levels. However, a store would need to
have enough inventories to meet any needs of its customers.

Q44. What Do You Mean by Special Stocks?


Ans. Special stocks are stocks that are managed differently as these stocks did not belong
to company and these are being kept at some particular location.

Q45. What Is Difference Between Contract and Scheduling Agreement?


Ans. Contract is a long-term outline agreement between vendor and ordering party over
predefined material or services over certain framework of time whereas scheduling
agreement is a long-term outline agreement between vendor and ordering party over a
predefined material or service which are procured on predetermined dates over a
framework of time.

Q46. What Is Interference?


Ans. Interference is a factor in forecasting demand. Interference is made up of all the factors
that a forecaster has no control over. Factors that may be considered interference include
natural disasters, unusual customer demands, or rare events in the business period.

Q47. What Do the Letters In The EOQ And Stocking Cost Formula Stand For?
Ans. The letters in the formulas represent the quantity ordered(Q), the carrying cost of a
unit(C), the demand for the units(D) and the cost of completing a order(S).

Q48. How Does the Consignment Cycle Operate?


Ans. The various steps in consignment cycle are:
 Create consignment info record with proper tax code.
 Create Purchase order with item category K.
 Create output condition record for KONS (output type).
 Authorize Goods Receipt (GR).
 Payment is settled through MRKO transaction even if invoice
verification is not done.

Q49. What Is a Gr Blocked Stock and When Is It Used?


Ans. The GR blocked stock is an option used in the goods receipt process when you are not
sure about the quality of the goods received. In such a case, the stock is maintained as GR
blocked either from a material viewpoint or exclusively for a purchase order item.
Q50. What Is a Order Point?
Ans. A order point is a point in time at which a order is placed to replenish goods in
inventory.

Q51. What Is MRP? And How Is Lot Size Used?


Ans. MRP is short for Materials Requirements Planning and it is a production planning
technique that's used to manage the manufacturing process. It is basically used to
determine your Material Planning procedure by specifying the various conditions like
Reorder Point, Seasonal Requirement, Replenishment, Vendor Managed, Forecast Based
and Master Production Scheduling (MPS). Lot size specifies the nature of material
requirement in terms of Weekly, Monthly, Quantity and Maximum Replenishment.

Q52. Can Forecasting Help in Controlling Inventory?


Ans. Yes, through the use of forecasts inventory levels can be set to meet the demands while
keeping levels as low as possible.

Business Intelligence and Knowledge Management

Q)What do you understand by Business Intelligence?


A. The term Business Intelligence refers to a collective meaning, including technologies,
tools, applications, practices for the data collection, and providing those data to the users,
especially to help in running the business or a part of it.
In other words, the business analyst’s reports generated and compiled using the Business
Intelligence approaches are consumed by the higher management administrative and business
executives to make better decisions for the overall maturity of the business.
Q) What are the primary objectives of Business Intelligence?
A. The primary objectives of Business Intelligence are:
1.Business Intelligence is leverage to make the following enterprise-level decisions.
2.Business Intelligence helps in identifying the wrong tracks and approaches of a business.
3.Business Intelligence can cluster the data for analysis and then compile them to monitor
corrective actions.
4.Business Intelligence is also useful for determining whether a company is executing as per
plan.
5.Identification and extraction of trends and insights from business are possible using
Business Intelligence tools.

Q)What are the popular Business Intelligence (BI) tools used by Business Analysts?
A.The popular Business Intelligence (BI) tools used by Business Analysts are:
1.Microsoft BI
2.Cognos
3.MicroStrategy
4.Tableau
5.SAS
6.Business Objects
7.OBIEE
8.Hyperion

Q) How will you implement a BI system in your professional approach?


A. There are three steps to implement a BI system:
1.Extract the raw data from the corporate database. The data might be available across
various heterogeneous databases.
2.Then, the data is cleaned to put them in the data-warehouse by linking the table and
forming the data cubes.
3.Lastly, using BI systems, business analysts can extract business insights, request ad-hoc
reports, analyze those clean datasets, and predict the business decisions.

Q) How will you define OLAP (Online Analytical Processing)?


A. OLAP (Online Analytical Processing) is a technological concept applied in various BI
tools and applications that helps in executing complex analytical calculations. OLAP
analyzes the trends, performs intricate calculations (like aggregation, summation, count,
average, min, max), and carries out sophisticated data modeling in a BI system. OLAP
systems’ primary objective is to diminish the response time of queries and improve the
effectiveness of the calculated reports.
Q) How will you define OLTP (Online Transaction Processing)?
A. OLTP (Online Transaction Processing) systems are the vast collection of small data
transactions like insert, delete, and update. These are operational databases that produce
quick processing of a query. It also determines the integrity and consistency of data. It is the
number of transactions per second that helps in measuring the efficiency of an OLTP system.
Q) Define the term Data Warehousing?
A. Data Warehousing is the repository system used to analyze and report data from various
heterogeneous sources and forms. These data will be available from the oracle database, SQL
Server, Postgres, or a simple excel sheet. The warehouse uses one central mechanism called
the repository, through which the business analyst can fetch all historical reports associated
with that data.
Q) Mentioned some characteristics of the Data warehouse
A.
1.A data warehouse is a separate database responsible for storing historical information
records and is kept separate from an operational database.
2.Processed and analyzed data from a data warehouse helps make top management strategic
and tactical decisions based on the analysis.
3.Analyzing data in the data warehouse helps the business analysts and users see the current
business trends.
4.The data warehouse is also responsible for consolidating historical data analysis.
Q) What are the key advantages of using BI systems?
A. The key advantages of using BI systems are:
1.It helps boost productivity and makes it possible to create a business report with just a
single click.
2.It also helps increase the visibility of the data analysis and possibly identify those areas that
demand attention.
3.As per the organization’s goals, the BI system sets the accountability.
4.BI systems automate several tasks by offering predictive analysis, benchmarking, modeling
figures, and statistical calculations using different methodologies.
Q) Mention two disadvantages of Business Intelligence Systems.
A. The two disadvantages of Business Intelligence Systems are:
1.The BI systems are costly, so using them for small and medium scale enterprises will prove
expensive.
2.Implementing BI systems for the data warehouse is complicated. Hence, the complexity of
using it is another drawback of it.
Q) What are aggregates?
A. Aggregates are a form of data found in the aggregate table. To calculate these aggregates,
various aggregate functions such as min, max, count average, etc. are used.
Q) Explain in one line the meaning of granularity.
A. Granularity tells us about the level (high to low) of information residing in the table. The
lower the granularity is, the low-level information it contains.
Q) What Are the Common Uses and Applications of AI?
A. Possibilities include contract analysis, object detection, and classification for avoidance
and navigation, image recognition, content distribution, predictive maintenance, data
processing, automation of manual tasks, or data-driven reporting.
Q) What Are Intelligent Agents, and How Are They Used in AI?
A. Intelligent agents are autonomous entities that use sensors to know what is going on, and
then use actuators to perform their tasks or goals. They can be simple or complex and can be
programmed to learn to accomplish their jobs better.
Q) What Is Machine Learning, and How Does It Relate to AI?
A. Machine learning is a subset of AI. The idea is that machines will “learn” and get better at
tasks over time rather than having humans continually having to input parameters. Machine
learning is a practical application of AI.
Q) Why Is Image Recognition a Key Function of AI?
A. Humans are visual, and AI is designed to emulate human brains. Therefore, teaching
machines to recognize and categorize images is a crucial part of AI. Image recognition also
helps machines to learn because the more images that are processed, the better the software
gets at recognizing and processing those images.

Q) Where does Artificial Intelligence go from here?


A. It is anticipated that artificial intelligence will continue to have a significant impact on a
large number of people as well as almost every sector. Artificial intelligence has become the
primary impetus behind the development of new technologies such as robots, the Internet of
Things, and large data sets. AI is capable of making an ideal judgment in a split second,
which is almost difficult for a person to do.
Cancer treatment, cutting-edge global climate solutions, smart transportation, and space
research are all being aided by AI. We don't expect it to renounce its position as the driving
force behind computer innovation and progress any time soon. Artificial Intelligence will
have a greater influence on the globe than any other technological advancement in human
history.
Q) What are the various Expert System components?
A. The following are the primary components that make up an expert system:
•User Interface
It allows a person to engage with or interact with an expert system in order to discover a
solution to a problem they are experiencing.
•Inference Engine
It is known as the expert system's central processing unit or brain. In order to reach a
conclusion based on the existing knowledge, it applies a variety of different rules of inference
to the data. An inference engine is used by the system in order to get the information that is
included inside the KB.
•Knowledge Base
Domain-specific and high-quality information is stored in a knowledge base.

Q) What are some real-life applications of Artificial Intelligence?


A.
•Social Media: The most common use of Artificial Intelligence in social media is facial
detection and verification. Artificial Intelligence, along with machine learning, is also used to
design your social media feed.
•Personalized online shopping: Shopping sites use AI-powered algorithms to curate the list of
buying recommendations for users. They use data like users' search history and recent orders
to create a list of suggestions that users might like.
•Agriculture: Technologies, especially Artificial Intelligence embedded systems, help farmers
protect their crops from various adversities like weather, weeds, pests, and changing prices.
•Smart cars: Smart cars are another one of the real-life applications of AI. Artificial
intelligence collects data from a car’s radar, camera, and GPS to operate the vehicle when the
autopilot mode is on.
•Healthcare: Artificial Intelligence has come out as a reliable friend of doctors. From
intelligent testing to medical recommendations, they assist medical professionals in every
possible way.

Q) What are different platforms for Artificial Intelligence (AI) development?


A. Some different software platforms for AI development are-
1. Amazon AI services
2. Tensorflow
3. Google AI services
4. Microsoft Azure AI platform
5. Infosys Nia
6. IBM Watson
7. H2O
8. Polyaxon
9. PredictionIO
Q) What are some real-life applications of Artificial Intelligence?
A.
•Social Media: The most common use of Artificial Intelligence in social media is facial
detection and verification. Artificial Intelligence, along with machine learning, is also used to
design your social media feed.
•Personalized online shopping: Shopping sites use AI-powered algorithms to curate the list of
buying recommendations for users. They use data like users' search history and recent orders
to create a list of suggestions that users might like.
•Agriculture: Technologies, especially Artificial Intelligence embedded systems, help farmers
protect their crops from various adversities like weather, weeds, pests, and changing prices.
•Smart cars: Smart cars are another one of the real-life applications of AI. Artificial
intelligence collects data from a car’s radar, camera, and GPS to operate the vehicle when the
autopilot mode is on.
•Healthcare: Artificial Intelligence has come out as a reliable friend of doctors. From
intelligent testing to medical recommendations, they assist medical professionals in every
possible way.

Q) What are different platforms for Artificial Intelligence (AI) development?


A. Some different software platforms for AI development are-
1.Amazon AI services
2.Tensorflow
3.Google AI services
4.Microsoft Azure AI platform
5.Infosys Nia
6.IBM Watson
7.H2O
8.Polyaxon
9.PredictionIO

Q) What are the programming languages used for Artificial Intelligence?


A. Python, LISP, Java, C++, R are some of the programming languages used for Artificial
Intelligence.

Q. What is the future of Artificial Intelligence


A. Artificial Intelligence has affected many humans and almost every industry, and it is
expected to continue to do so. Artificial Intelligence has been the main driver of emerging
technologies like the Internet of Things, big data, and robotics. AI can harness the power of a
massive amount of data and make an optimal decision in a fraction of seconds, which is
almost impossible for a normal human. AI is leading areas that are important for mankind
such as cancer research, cutting-edge climate change technologies, smart cars, and space
exploration. It has taken the center stage of innovation and development of computing, and it
is not ceding the stage in the foreseeable future. Artificial Intelligence is going to impact the
world more than anything in the history of mankind.

Q) What is decision making?


A. The decision-making process is the method of gathering information, assessing
alternatives, and, ultimately, making a final choice.
Q. What are the types of decisions?
A. There are different levels in an organization. Each of these levels has different information
requirements for decision support. Decisions are classified as structured, semistructured, and
unstructured.
Structured Decisions:
Structured decisions are those types of decision which are taken following a pre-established
model. No brain storming is required. line managers take these types of decisions according
the models prepared by the top level managers to perform there job.
Ex: For instance the hiring of new IT specialists in a firm.
Unstructured decisions
Unstructured decisions are those in which the decision maker must provide judgment,
evaluation, and insight to solve the problem. The unstructured decisions are the non-
programmed decisions that are happening for the first time. Senior management involves in
unstructured decisions. Each of these decisions is important, and nonroutine, and there is no
well-understood procedure for making them.
For instance, dealing with a labor strike in a factory, Establishing the firm’s 5- or 10-year
goals or deciding new markets to enter.
Semi structured Decisions:
Many decisions have elements of both types of decisions and are semistructured, where only
part of the problem has a clear-cut answer provided by an accepted procedure
Q) What is Decision making process and how it works?
A. Making a decision is a multistep process. Simon (1960) described four different stages in
decision making: intelligence, design, choice, and implementation
Intelligence consists of discovering, identifying, and understanding the problems occurring in
the organization—why a problem exists, where, and what effects it is having on the firm.
Design involves identifying and exploring various solutions to the problem.
Choice consists of choosing among solution alternatives.
Implementation involves making the chosen alternative work and continuing to monitor how
well the solution is working.

Q) Models of decision making?


A. There are a variety of decision-making models you should consider. As you read through
these examples, you will see some are best suited for individual decisions, some for teams,
and some for more complex situations. Picking the right decision-making model for your
situation will be the first step to making a well-rounded decision that will last the test of time.
Rational Decision Making Model
This one is often seen as the most classical approach and was one of the first attempts at
developing a model for decision making. The rational decision-making model is a series of
steps to be considered when making a decision that should lead you to the best choice. This is
a good option if your problem or situation is well-defined and you have quantifiable options.
Here are the steps:
1.Identify the problem or opportunity
2.Gather and organize information
3.Analyze the situation
4.Develop a range of options
5.Evaluate and assign value to each one
6.Select the option you deem is best
7.Actively decide on that option and move forward
Retrospective Decision-Making Model
The retrospective model allows the decision maker to be both biased and somewhat
“irrational” in the process. The decision is essentially made on instinct or gut, but then the
decision maker goes through the process of justifying their decision based on researching
other options. As the decision maker cycles through the other solutions available, they may
begin to see the strengths or weaknesses of their first choice. However, if all solutions are less
favorable than the original, the implicit favorite can be selected. It is a wise idea to have a
second candidate idea waiting in the wings if the first option doesn’t work out. This approach
works best with decisions that are primarily personal in nature where other people won’t be
affected as much as the one making the decision.
Recognition Primed Decision Model
The recognition primed model is a combination of making decisions based on intuition and
rational information. This model is helpful for the leader who has to make an important
decision when there isn’t much time to run analysis. This model involves three steps:

1. Experience the Situation


You take in as much information as possible about the situation. Listen to those involved,
gather as much data as you can, and assess the urgency of making a decision.

2. Analyze the Situation


Now that you have a good grasp on the situation, you can move into the process of working
towards a solution. You will most likely be looking at a variety of viable solutions. It’s
important not to jump at the first thing that pops up. Give as much time as possible to let
other options present themselves, and then analyze them all to determine the best one for this
situation.

3.Implement the Decision


This is where you take the decision from theory to reality. As you are analyzing, you should
always have this phase in mind and be thinking about how you will implement. It’s also
important to move quickly and not let yourself get stuck in decision paralysis.
OODA Loop
The OODA Loop is a simple, clear model to consider when you need a highly effective way
to make decisions about the operations of your organization. It’s especially beneficial for
operational activities – because it is a loop! Since operational activities are ongoing, this
model serves these situations well. The steps are simple and will be repeated:
1.Observe
2.Orient
3.Decide
4.Act
It’s that simple. Most of these stages will be familiar to you, but the second one (orient) may
need some explanation. The idea is to make sure you orient yourself correctly with the
information at hand and don’t allow your personal past experience to get in the way of
making the best decision today.
Q) A DSS is an organized collection of software, Hardware, Database, Telecommunication
network and internet, People and Procedures.
A.Used to support problem-specific decision making and problem solving.
Q) Whereas MIS helps an organization -----------, a DSS helps a organization
A. DO things right, Do right things
Q) DSS is used to solve
A. Structured, Unstructured, Semi-structured.
Q) A ------ can integrate all multiple variable and produce an outcome.
A. DSS
Q) A ------ is a computer application used to support determinations, decisions and courses of
action in an organization or business.
A. Decision support system.
Q) “What-if” analysis is performed by which DSS
A. Model driven DSS
Q) Large pools of data found in major organizational systems are analysed by which DSS
A. Data driven DSS
Q) DSS in a supply chain helps managers in taking decisions of
A. Strategic level, tactical level, operational level
Q) A DSS supports in ------ of Herbert-Simon model
A. Decision making phase, Problem solving phase
Q) DSS is concerned with situations or decisions that come up only few times during the life
of an organization
A. Ad-hoc
Q) What are MIS Tracks?
A. Management information systems generate reports about all kinds of data that are useful to
management in decision making. This includes reports on things like employee performance,
employee efficiency, the effectiveness of training, completed work and work that still needs
to be completed. MIS can compare employee performance, rank employee performance and
compare performance to projections and expectations.
For instance, an engineering department at a major telecommunications company could have
a MIS that tracks each employee's workload, jobs, job due dates and accuracy percentages.
When a manager runs the MIS report for the week, month or quarter, the report will highlight
late jobs, employees performing below company standards and employees with an
overburdened workload. This report is then discussed at management and team meetings in
order to address issues before they become crises.
Q) Why MIS is used?
A. While the objective of a transactional-processing system is to provide accurate transaction
data, and the objective of office-automation systems is to increase office communication,
management information systems have specific objectives too. While they vary from
company to company based on the data tracked, the following are common objectives:
Compare actual performance to expected performance.
Facilitate efficient and timely managerial planning.
Reduce costs by highlighting time waste in the organization.
Provide data about the performance of employees, management, products, services, money,
materials and equipment.
Highlight organizational strengths and weaknesses.
Illuminate product- or material-quality problems in order to reduce material waste.
Q) Where MIS is used?
A. Increased Profits: MIS application can result in new product development, changed
marketing, changed packaging, improved customer service, a growing product line, better
communication with different levels of customers, competitive pricing and higher customer
retention rates.
Increased Quality: MIS application contributes to increased quality through reducing waste,
helping in the selection of quality materials and implementing warranties/guarantees that
match material quality.
Decreased Costs: MIS application helps management become more strategic about material
sourcing, staffing, scheduling, increasing efficiency, improving processes, managing
inventory appropriately and manufacturing goods at the right time.
Q. What is the role of MIS in organizations?
A The role of management information systems in organization decision-making processes is
key to helping businesses reduce waste and increase profits. MIS reports can be used by
individual managers and groups of managers and can be shown to employees to highlight
where they are performing well and where they need to grow.
When management has an accurate report, they do not have to guess about who is doing well
or what needs to be improved or wonder where their blind spots are. The data help them see a
clearer, less-biased picture than they could come up with on their own.
Q) What is Knowledge?
A. Knowledge is capacity for effective action.
Q) What Is Tacit Knowledge and Explicit Knowledge?
A. Knowledge that is not recognized, articulated, documented or encoded is called tacit
knowledge. Knowledge that is documented in print or audio-visual material or encoded in
databases is explicit knowledge.
Q) Is Km Better Implemented Bottoms-up Or Top-down?
A. KM is basically an organizational perspective with organizational applications therefore it
is better started top-down, that is, with resource as well as policy support from the top.
Q) What Is “knowledge Translation”?
A. Knowledge translation is the last two stages of the knowledge cycle: transferring and
using knowledge. It usually includes the transformation of knowledge into more usable form.
This is needed if the institutional and cultural context of the knowledge source is different
from that of the knowledge user.

Q) What Is the Advantage Of Km Over Information Management?


A. KM is a management perspective that is broader than information management because it
pays more attention to tacit knowledge. Computer Associates estimates that only about 5% of
total knowledge in an organization is captured in (explicit) ICT-mediated repositories; the
rest is tacit knowledge in the heads of employees and executives that cannot be reached by
information management.
Q) What Is the Difference Between Km And Information Management?
A. KM focuses on information that is useful for effective action. KM is concerned with both
explicit and tacit knowledge, while information management deals largely with explicit
knowledge. While information management largely uses information/communication
technologies (=ICT), KM uses both behavioural/social tools and ICT.
Q) What is difference between Data, Information, Knowledge and Wisdom?
A. Data is a flow of events or transactions captured byan organization’s systems that, by
itself, is useful for transacting but little else.To turn data into useful information, a firm must
expend resources to organizedata into categories of understanding, such as monthly, daily,
regional, orstore-based reports of total sales. To transform information into knowledge, afirm
must expend additional resources to discover patterns, rules, and contextswhere the
knowledge works. Finally, wisdom is thought to be the collectiveand individual experience of
applying knowledge to the solution of problems.Wisdom involves where, when, and how to
apply knowledge.
Q) What Is the Benefit from Km?
A. Good internal KM helps knowledge workers perform their job better; good external KM
enables customers or stakeholders to perform desirable actions. The primary beneficiaries of
KM are the organization and its members, and eventually, the customers or stakeholders
served by the organization.
Q) How is Km implemented?
A. Some organizations start with small KM initiatives with likely positive impacts based on
other organization’s experiences; thus the most popular KM initiatives are: exchange of best
practices, set up of an intranet and organizing a CoP. Other organizations start systematically
by conducting a KM audit or assessment as input to designing a KM system.
Q) What are the components of knowledge management?
A. Components of knowledge management are
 People
 Process
 Strategy
 Content
 Operational information
 Organizational information
 Reference information
 Customer information
 Collaborative flow.

Q) How are Neural Networks modelled?


A. Artificial neural networks are modelled from biological neurons.
 The connections of the biological neuron are modelled as weights.
 A positive weight reflects an excitatory connection, while negative values mean
inhibitory connections.
 All inputs are modified by a weight and summed. This activity is referred to as a
linear combination.
 Finally, an activation function controls the amplitude of the output. For example, an
acceptable range of output is usually between 0 and 1, or it could be −1 and 1.

Q) How can Neural Networks be Unsupervised?


A. Neural Networks are used in unsupervised learning to learn better representations of the
input data.Neural networks can learn a mapping from document to real-valued vector in such
a way that resulting vectors are similar for documents with similar content. This can be
achieved using autoencoders which is a model that is trained to reconstruct the original vector
from a smaller representation with reconstruction error as a cost function.There are neural
networks that are specifically designed for clustering as well. The most widely known is the
self-organizing maps (SOM).
Q) How do Neural Networks get the optimal Weights and Bias values?
A. The neural networks get the optimal weights and bias values through an Error Gradient.To
decide whether to increase or decrease the current weights and bias, it needs to be compared
to the optimal value. This is found by the gradients of error with respect to weights and
bias.Gradient value is calculated from a selected algorithm called backpropagation.An
optimization algorithm utilizes the gradient to improve the weight values and bias.
Q) What is the difference between Deep Learning and Artificial Neural Networks?
A. When researchers started to create large artificial neural networks, they started to use the
word deep to refer to them.As the term deep learning started to be used, it is generally
understood that it stands for artificial neural networks which are deep as opposed to shallow
artificial neural networks.Deep Artificial Neural Networks and Deep Learning are generally
the same thing and mostly used interchangeably.

Data Analytics
1. Where you have used Hypothesis Testing in your machine learning solution?
Answer: Hypothesis testing is one of the statistical analysis where we test the assumption
made for any particular situation. While testing some assumption which was claimed to be
true I performed the hypothesis testing where the null hypothesis was that whatever claimed
results to be true and the alternate hypothesis was that whatever claim was made was false.

2. What do you understand by P-value? And what is the use of it in machine learning?
Answer: P-value which is also know as probability value, it the probability of null hypothesis
to be true. It sets the rule to reject null hypothesis.
If the p-value is less than the significance value then we reject the null hypothesis or else accept
it.
If the p-value falls in the 95% of the confidence interval then we will accept the null hypothesis.

3. Which type of error is sever error, Type1 or Type2? And why with example.
Answer: To answer of this question is it depends. It depends on the problem statement we are
looking into.

For example:
The confusion matrix with regards to disease vs treatment is fatal in case of true positive (when
patient have the disease and the model predicted that patient dont have the disease) then in that
case patient wont get the treatment and might loose his/her life.

Similarly in criminal is guilty or innocent case false positive is is much more worse (when the
person is innocent and the model predicts person is guilty) as we will end up punishing an
innocent.

4. Can we use Chi-Squared with numerical dataset? If yes, give example. If no, give
reason.
Answer: Chi-Squared generally deals with categorical data rather than only numerical data.

Chi Squared finds the differences or it compares two or more groups with a value, or to compare
two or more groups.

5. What do you understand by ANOVA testing?


Answer: ANOVA stands for Analysis of Variance. It is an extension of T-Test.
In T-Test we test if there is any difference in mean and it can only test of two groups at a time,
so if there are more than 2 groups instead of performing T-Test multiple times we go for
ANOVA testing.

ANOVA testing looks for two different types of variations:


variation within groups
variation between groups

To test ANOVA our hypothesis will be:

null hypothesis: There is no difference in means


alternate hypothesis: Atleast or mean differs from the other means
There are two type of ANOVA:

One way ANOVA


Two way ANOVA
One way ANOVA: When we want to test two groups and see if thee is any difference.

Two way ANOVA: When we test twice for the same group.

6. Give me a scenario where we can use the Z-test and T-test.


Answer: We use either of the test depends on:

 Sample size:
When sample size is large or greater than 30 we use Z-test else T-test

 Population variance:
When population variance is known, we use Z-test else T-test

 Distribution:
If normally distributed we perform Z-test else T-test

7. What do you understand by inferential statistics?


Answer: When we try to form a conclusion about the population by conducting the experiments
on sample taken from the population.

8. When you are trying to calculate standard deviation or variance, why you used n-1 in
denominator?
Answer: Having denominator as n-1 corrects the biases in the estimation of the population
variance.

So, for example:


if we have data points where the population mean is not inside the sample points
now, if we take the sample mean and the distance between the sample points to the sample
mean, that will be much lower estimate as compared to population variance
this could lead to underestimating the population variance
Hence by dividing the denominator by n-1 which makes the denominator much smaller and in
turn gives high value for the sample variance which will be unbiased estimate

9. What to do you understand by right skewness? Give example.


Answer: When the data is not normally distributed and we have tail type elongated line on the
right side, that is called right skewness.

For example:
Income distribution.

10. What is the the difference between normal distribution, standard normal distribution
and uniform distribution?
Answer:

 Normal distribution
it is a density curve which is a bell shaped curve
Has the tendency of the data to cluster around the central value which is also known as
population mean
Has a total area of 100%
Standard normal distribution
It is a special type of normal distribution which has the mean as 0 and the standard deviation
as 1

 Uniform distribution
This distribution has the values which lies between certain range/boundary.

11. How is the statistical significance of an insight assessed?


Hypothesis testing is used to find out the statistical significance of the insight. To elaborate,
the null hypothesis and the alternate hypothesis are stated, and the p-value is calculated.

After calculating the p-value, the null hypothesis is assumed true, and the values are
determined. To fine-tune the result, the alpha value, which denotes the significance, is tweaked.
If the p-value turns out to be less than the alpha, then the null hypothesis is rejected. This
ensures that the result obtained is statistically significant.

12. Where are long-tailed distributions used?


A long-tailed distribution is a type of distribution where the tail drops off gradually toward the
end of the curve.

The Pareto principle and the product sales distribution are good examples to denote the use of
long-tailed distributions. Also, it is widely used in classification and regression problems.

13. What is the central limit theorem?


The central limit theorem states that the normal distribution is arrived at when the sample size
varies without having an effect on the shape of the population distribution.
This central limit theorem is the key because it is widely used in performing hypothesis testing
and also to calculate the confidence intervals accurately.

14. What is observational and experimental data in Statistics?


Observational data correlates to the data that is obtained from observational studies, where
variables are observed to see if there is any correlation between them.

Experimental data is derived from experimental studies, where certain variables are held
constant to see if any discrepancy is raised in the working.

15. What is meant by mean imputation for missing data? Why is it bad?
Mean imputation is a rarely used practice where null values in a dataset are replaced directly
with the corresponding mean of the data.

It is considered a bad practice as it completely removes the accountability for feature


correlation. This also means that the data will have low variance and increased bias, adding to
the dip in the accuracy of the model, alongside narrower confidence intervals.

16. What is an outlier? How can outliers be determined in a dataset?


Outliers are data points that vary in a large way when compared to other observations in the
dataset. Depending on the learning process, an outlier can worsen the accuracy of a model and
decrease its efficiency sharply.

Outliers are determined by using two methods:

Standard deviation/z-score
Interquartile range (IQR)

17. What is the Pareto principle?


The Pareto principle is also called the 80/20 rule, which means that 80 percent of the results
are obtained from 20 percent of the causes in an experiment.

A simple example of the Pareto principle is the observation that 80 percent of peas come from
20 percent of pea plants on a farm.

18. What is the meaning of the five-number summary in Statistics?


The five-number summary is a measure of five entities that cover the entire range of data as
shown below:
 Low extreme (Min)
 First quartile (Q1)
 Median
 Upper quartile (Q3)
 High extreme (Max)

19. What is the meaning of standard deviation?


Standard deviation represents the magnitude of how far the data points are from the mean. A
low value of standard deviation is an indication of the data being close to the mean, and a high
value indicates that the data is spread to extreme ends, far away from the mean.

20. What is a bell-curve distribution?


A normal distribution can be called a bell-curve distribution. It gets its name from the bell curve
shape that we get when we visualize the distribution.

21. What is skewness?


Skewness measures the lack of symmetry in a data distribution. It indicates that there are
significant differences between the mean, the mode, and the median of data. Skewed data
cannot be used to create a normal distribution.

22. What is kurtosis?


Kurtosis is used to describe the extreme values present in one tail of distribution versus the
other. It is actually the measure of outliers present in the distribution. A high value of kurtosis
represents large amounts of outliers being present in data. To overcome this, we have to either
add more data into the dataset or remove the outliers.

23. What is the difference between Descriptive and Inferential Statistics?


Descriptive Statistics: Descriptive statistics is used to summarize a sample set of data like the
standard deviation or the mean.
Inferential statistics: Inferential statistics is used to draw conclusions from the test data that are
subjected to random variations.

24. What are the types of sampling in Statistics?


There are four main types of data sampling as shown below:
 Simple random: Pure random division
 Cluster: Population divided into clusters
 Stratified: Data divided into unique groups
 Systematical: Picks up every ‘n’ member in the data

25. What is the meaning of covariance?


Covariance is the measure of indication when two items vary together in a cycle. The
systematic relation is determined between a pair of random variables to see if the change in
one will affect the other variable in the pair or not.

DBMS

Q1. What is a flat-file?


A. A flat file is a collection of data stored in a two-dimensional database in which similar
yet discrete strings of information are stored as records in a table.

The information stored in a flat-file is generally alphanumeric with little or no additional


formatting.
Q2. What is a primary key and a foreign key?
A. Primary Key is used to uniquely identify the records in a database table while Foreign
Key is mainly used to link two or more tables together.
Example: There are 2 tables – Employee and Department. Both have one common
field/column as ‘ID’ where ID is the primary key of the Employee table while this is the
foreign key for the Department table.
Q3. What are the main differences between Primary key and Unique Key?
A. The main difference between the Primary key and Unique key is that the Primary key
can never have a null value while the Unique key may consist of null value.

In each table, there can be only one primary key while there can be more than one unique
key in a table.
Q4. What is E-R model in the DBMS?
A. E-R model is known as an Entity-Relationship model in the DBMS which is based on
the concept of the Entities and the relationship that exists among these entities.
Q5. Explain Entity, Entity Type, and Entity Set in DBMS?
A. Entity is an object, place or thing which has its independent existence in the real world
and about which data can be stored in a database. For Example, any person, book, etc.

Entity Type is a collection of entities that have the same attributes. For Example, the
STUDENT table contains rows in which each row is an entity holding the attributes like
name, age, and id of the students, hence STUDENT is an Entity Type which holds the
entities having the same attributes.

Entity Set is a collection of entities of the same type. For Example, A collection of the
employees of a firm.

Q6. What are the different types of languages that are available in the DBMS?
A. Basically, there are 3 types of languages in the DBMS as mentioned below:
DDL: DDL is Data Definition Language which is used to define the database and schema
structure by using some set of SQL Queries like CREATE, ALTER, TRUNCATE, DROP and
RENAME.
DCL: DCL is Data Control Language which is used to control the access of the users inside the
database by using some set of SQL Queries like GRANT and REVOKE.
DML: DML is Data Manipulation Language which is used to do some manipulations in the
database like Insertion, Deletion, etc. by using some set of SQL Queries like SELECT, INSERT,
DELETE and UPDATE.
Q7. What are the different type of relationships in the DBMS?
A. Relationships in DBMS depicts an association between the tables.
Different types of relationships are:
One-to-One: This basically states that there should be a one-to-one relationship between the
tables i.e. there should be one record in both the tables. Example: Among a married couple,
both wife and husband can have only one spouse.
One-to-Many: This states that there can be many relationships for one i.e. a primary key table
hold only one record which can have many, one or none records in the related table. Example:
A Mother can have many children.
Many-to-Many: This states that both the tables can be related to many other tables. Example:
One can have many siblings and so do they have.
Q8. What is a functional dependency?
A. A functional dependency expresses the relationship between the non-key attributes
and the primary key of a table. There are two types of functional dependency – trivial and
non-trivial. The relationship can be described as A -> B, where A is the determinant, and B is
the dependent column.
Q9. What is the purpose of normalization in DBMS?
A. Normalization is an important process that removes redundancy from a set of
relations. It can reduce irregularities in the insert, delete and update commands by dividing
huge tables into smaller tables and using keys to link them.
Q10. What is Denormalization?
A. Denormalization is a database optimization technique where redundant data is added
to one or more tables to avoid joins. This makes data retrieval faster and more efficient.

Q11. What are the different types of database keys?


A. There are several types of DBMS keys:
Primary Key: Column or set of columns that identify a particular row in a table
Super Key: Single key or set of multiple keys that identifies rows of a table
Candidate Key: A set of attributes that identify tuples of a table uniquely. It is essentially a
super key without repeated attributes
Alternate Key: One or more columns of a table that collectively identify each of a table
uniquely
Foreign Key: A common column that defines the relationship between two tables. maintains
data integrity
Compound Key: Consists of two more attributes that uniquely identify a record, even when
the column is not unique by itself
Composite Key: Primary key that has two or more attributes like {customer_id +
mobile_number}
Surrogate Key: Created when there is no naturally available primary key for a table. provides
a unique identity to a row in the table.
Q12. What is the use of DROP command and what are the differences between DROP,
TRUNCATE and DELETE commands?
A. DROP command is a DDL command which is used to drop/delete the existing table,
database, index or view from the database.
The major difference between DROP, TRUNCATE and DELETE commands are:
DROP and TRUNCATE commands are the DDL commands which are used to delete tables
from the database and once the table gets deleted, all the privileges and indexes that are
related to the table also get deleted. These 2 operations cannot be rolled back and so should
be used only when necessary.
DELETE command, on the other hand, is a DML Command which is also used to delete rows
from the table and this can be rolled back.
Q13. What is a join in the SQL?
A. A Join is one of the SQL statements which is used to join the data or the rows from 2
or more tables on the basis of a common field/column among them.
Q14. Are NULL values in a database the same as that of blank space or zero?
A. No, a NULL value is distinct from zero and blank space in that it denotes a value that
is assigned, unknown, unavailable, or not applicable, as opposed to blank space, which
denotes a character, and zero, which denotes a number.
For instance, a NULL value in "number of courses" taken by a student indicates that the value
is unknown, but a value of 0 indicates that the student has not taken any courses.
Q15. What do you mean by Data Model?
A. A data model consists of a set of tools for describing data, semantics, and constraints.
They also assist in the description of the relationship between data entities and their
attributes. Hierarchical data models, network models, entity relationship models, and
relational models are some of the most prevalent data models.
Q16. What are the differnt data models?
A. There are number of data modesl and they are :
 Hierarchical data model
 Network model
 Relational model
 Entity-Relationship model
Q17. What is the difference between having and where clause?
A. In a select statement, HAVING is used to establish a condition for a group or an
aggregate function. Before grouping, the WHERE clause picks. After grouping, the HAVING
clause picks rows. The WHERE clause, unlike the HAVING clause, cannot contain aggregate
functions.
Q18. What are indexes?
A. A database index is a data structure that improves the speed of data retrieval
operations on a database table at the expense of more writes and storage space to keep the
extra copy of data. On a disc, data can only be stored in one order. Faster search, such as
binary search for different values, is sought to provide faster access according to different
values. Indexes on tables are constructed for this purpose. These indexes take up more disc
space, but they allow for speedier searches based on several frequently queried parameters.
Q19. What is the difference between a database schema and a database state?
A. Database state refers to the collection of data kept in a database at a specific point in
time, whereas database schema refers to the database's overall design.
Q20. Explain Database partitioning and its importance.
A. The process of splitting a logical database into independent components to improve
availability, performance, and manageability is known as data partitioning.
The following are some of the reasons why database partitioning is important:
 Allows you to access significant portions of a partition.
 Data can be stored on low-cost, slower storage.
 Improves the speed of queries

INVENTORY & STORES MANAGEMENT


1. As an inventory specialist, what are their specific duties?
Working as an inventory specialist, it required to develop and implement an overall inventory
management plan which includes materials procurement, inventory stock levels, and facility
needs and personnel management. Additionally, also to provide direction to staff members
who handle inventory control and make sure any overstocking or shortages are handled in a
time efficient manner.
2. What is opening stock and closing stock?
At the beginning of a reporting period, the stock available in your inventory account is the
Opening Stock. It is also called as Beginning Inventory.
Closing stock is the amount of inventory that a business still has on hand at the end of a
reporting period. This includes raw materials, work-in-process, and finished goods inventory.
3. When should reorders be placed?
Depending on the control system you use and its lead time, there are different lead times for
reordering goods. When the safety stock is consumed in fixed order quantities, reorders
should be placed. Reordering occurs at predetermined intervals in systems with a specified
time. Reordering in just-in-time systems is based on balancing supply and demand.
4. What are the important considerations in inventory control?
Consider the costs of acquisition, carrying, ordering, and stock-out. The store must also look
at its reordering system, its budgeting for inventory, insurance and forecasted demand.
5. What are the types of reordering systems that can be used in inventory control?
 Fixed order quantity
 Fixed order period
 Just-in-time
The fixed order quantity uses fixed quantities of goods ordered at various order points to
replenish inventory. The fixed order period use fixed times of reorder with various order
quantities to replenish inventory to present levels. The final system, just in time uses a
constant flow of goods to match the level of demand.
6. Do I Need to Recomputed Stocking Costs for the Economic ordering quantity Level?
Yes, in order to compare stock costs when using the EOQ model you must compute the costs
for both the original level and the EOQ level of order quantities.
7. What Is Shrinkage in Inventory & how is it calculated?
Inventory shrinkage refers to the loss of goods between the point of manufacture or supplier
purchase and the point of sale. Shrink refers to the difference in the margin or profit that a
shop can make. If there is a lot of shrink, earnings decrease, which means increased consumer
expenses to satisfy the demands of the store.
Shrinkage = (Total value of the goods that you are supposed to have in your inventory -
Total value of the goods that is physically stocked in your inventory)
Total value of the goods that you are supposed to have in your inventory.
8. How can the value of inventory be determined?
1. The first is the specific cost in which each item's cost is added together for the
inventory's value.
2. A second method is to use the weighted average of the costs for a period to determine
value.
3. A third method is first in, first out (FIFO). In this method value is measured using the
latest costs of goods while working towards the beginning of the period until all goods
in inventory are valued.
4. The final method is last in, first out (LIFO). In this method the costs of gods at the
beginning of the period are used to determine the inventory's value much like FIFO.

9. ABC inventory control focuses on?


Items which consume more money. Inventory items are classified based on their annual usage
value in monetary terms.
Class A - item: 10 % of the item accounts 75% costs.
Class B - item: 20% of the item accounts 15% costs.
Class C - item: 70% of the item accounts 10% costs
10. What is the objective of EOQ Model?
The objective of this model is to minimize total annual cost by means of controlling inventory
levels. It is a best ordered quantity where total annual cost is minimum.
Annual carrying (Holding) cost = Annual ordering cost
To minimize total cost, EOQ denoted by (Q) is given by: Q = 2DS / H
Where: D = Annual demand, S = Setup cost or Order cost, H = Holding cost.

11. The difference between actual sales and breakeven point is known as?
Margin of safety. It is the difference between the break-even point and output is produced.
A large margin of safety indicates that the business can earn profit even if there is a great
reduction in output. A small margin of safety indicates that the profit will be small even if
there is a small drop in output.
Margin of safety ratio (M/S) = Margin of safety / Present sale = Sales − Breakeven point sales
/ Present sale
Break-even point: It is the point of intersection of the total cost line and total revenue line.
There is neither profit nor loss at the break-even point. At the break-even point, the margin
of safety ratio is 0.
Margin of safety ratio (M/S) = Sales − Breakeven point sales / Present sale = 0
12. When should a physical inventory be taken?
An inventory should be taken at least once a year. If items are perishable, seasonal or highly
demanded an inventory should be taken more often.
13. Can a computer help in forecasting future demand?
Yes, in the market today there are many computer software packages that can compute
forecasted demand for goods held in inventory.
14. What does EOQ stand for?
EOQ stands for Economic Order Quantity.
15. Can forecasting help in controlling inventory?
Yes, through the use of forecasts inventory levels can be set to meet the demands while
keeping levels as low as possible.
16. Tell me what is forecasting?
Forecasting is the process of estimating the future demand of a product.
17. What is raw material?
The basic inputs that are converted into finished product through the manufacturing process.
Raw materials inventories are those units which have been purchased and stored for future
productions.
18. What is an order point?
An order point is a point in time at which an order is placed to replenish goods in inventory.
19. How do you ensure procurement best practices throughout the project?
When it comes to best practices, procurement is all about pre and post-planning. So, having
a procurement plan, assigning roles, and responsibilities in a way that the project reflects
teamwork, and assessing the risks beforehand are some great practices to follow throughout
the project.
20. How will you determine the organization’s purchasing patterns?
Determining the organization’s purchasing pattern can be done by conducting a spend
analysis. It helps analyse valuable information like the amount of money allocated for certain
equipment and resources; the cost spent with each vendor and changes in spending. The best
tool for spend analysis is pivot tables in MS Excel spreadsheets.
21. How do you know if the price is fair if we buy from a single vendor?
Sometimes, there’s only a single reliable vendor with a customized product we need for our
project. In this case, we do not have multiple options, and it is important to ensure a fair price
point. Some techniques, such as a ‘should cost model’ can be really helpful.
22. Which tools do you prefer to track the progress of your project?
Tracking the progress of the project is what keeps a project on track. I prefer using versatile
tools that help have a look into different aspects at the same time. While there are several
tools such as SAP, MS Excel, etc.
23. What negotiation skills and tactics do you possess?
The negotiation skills and tactics depend on the resources you need and the history with the
supplier. Conducting a bid or using a win-win tactic can help go through the negotiation
smoothly. When it comes to difficult suppliers, they must be approached carefully. It is good
to prepare a negotiation before dealing with such suppliers. Implementing hardball
negotiation tactics or selling-style, persuasion tactics come in handy.

24. What are some important procurement metrics?


Procurement metrics largely depend on the goals and objectives of the project as well as the
organizational preferences. However, some standard procurement metrics include cost
savings, return on investment, cost-benefit analysis, procurement cycle time,
percentage/frequency of on-time deliveries, the ratio of managed spend to total spend, the
ratio of cost savings to managed spend, etc.
25. Explain the Purchasing Process.
The purchasing process includes assessing the need, communicating the required resources,
getting the approval, finding the right vendors/suppliers, negotiating with suppliers, choosing
the supplier, signing a contract, following up and closing the transaction.
26. What are the roles of a vendor manager?
Among the roles, vendor manager expect to play are sourcing for new vendors, vetting them,
and establishing contracts. VM will also manage relationships with the different vendors to
ensure smooth processes throughout the organization. VM will also be involved in monitoring
the performance of the vendors to determine if we should keep or replace them. VM will also
streamline processes to ensure that they achieve organizational goals. VM will also assist in
solving issues that arise. As a manager, VM will also work on developing and mentoring team.
27. When selecting a vendor, what criteria do you use?
For most of our vendors, we first request for referrals. Recommendations from others are a
great place to start. Once we get them, we give out the documentation for them to fill. Once
we receive the filled-in documents, we communicate with their references. We research the
ethics and integrity of the vendor while also checking their customer service work. This is
important since we like associating with reputable companies. We do price and quality
comparisons for the quotes. Our goal is to get the best quality for the cheapest price to
maximize our profits.
28. What Is Work-in-process?
Answer: Inventories are semi-manufactured products. They represent products that need
more work before they become finished product for sale.

29. Do You Know What Is the Importance Of Eoq?


Answer: The EOQ level is the point at which stocking costs are at their lowest point for a
given item.
30. Explain Me What Is Total Stocking Cost?
Total stocking cost is the cost to the store of holding a good in its inventory. The stocking
cost consists of the carrying cost times half the quantity in inventory and the order
completion cost times demand divided by the quantity. In its mathematical form the cost is
represented by TSC=(Q/2)C + (D/Q)S.
31. Tell Us What Makes A Good Forecasting Model?
A good forecast model will have reasonable costs. the accuracy of its forecasts will allow
good decision making. The model will have ample data available for its use and a relevant
time span. The model finally will have a low interference level.

Process Analysis

1. What is process analysis?


Process analysis explains how to do something, how to make something, or
how something happens. Specifically, it explains a sequence of actions with a specified result
by dividing it into its component steps. Basically, it answers the question how something
happens.

2. What is the purpose of process analysis?


The main purpose of process analysis is to explain; however, it might also
prove something about the process itself or evaluate it.

3. What are the two main types of process analysis?


The two main types are directive or explanatory
 A directive process tells how to do or make something
 An explanatory process provides the information necessary for readers to understand
the process

4. How is a process analysis usually organized?


All process analyses usually follow a chronological sequence, especially
a directive analysis, in which order is important to the desired outcome.

5. What kind of thesis is required for a process analysis?


A process analysis thesis should contain two elements: (1) the main
point of the analysis and, if possible, (2) the organizational format for exploring the
main idea—in this case, process analysis. If possible, it also previews the stages in the
process.

6. What kind of transitional expressions are used in process analysis?


In order for readers to grasp the time and place of each stage or
step in the process, these and similar signal words help keep the chronological sequence
straight

Bottleneck

1. What do you understand by bottleneck?


The bottleneck is a point of congestion in a production system (such as an assembly
line or a computer network) that occur when workloads arrive too quickly for the
production process to handle.

2. How to eliminate bottleneck?

Increase the capacity of the process creating it by restructuring the workflow or


investing in people and equipment.

3. How do I identify a bottleneck?

If there is work getting piled up at a process and if any machine is in idle state for a
long period of time.

4. What does centre of gravity method considers for location of plant?

Distance between existing facilities and volumes of goods to be shipped.

Project life cycle:


Q. What are the stages of the Project Life Cycle?
Ans:- Initiation, Planning, Execution, Evaluation

Q. which planning tool is this - a timeline that is used as a project management tool
Ans:- Gantt Chart

Q. Which SMART element is this referring to "Within the availability of resources, knowledge
and time”
Ans:- Realistic

Q.
Project Management Triangle consists of
Ans:- Cost, Scope, Time

Q. Which phase of the project life cycle needs the most resources?
Ans:- Executing

Q. What is input into the execution phase?


Ans:- Project plan, Test plan, Constraints list

Q.You are the project manager for your organization. Influencing your organization requires?
Ans:- An understanding of formal and informal organizational structures

Q. What are the selection criteria for the project life cycle?
Ans:- Investment, Rate of return, Risk, Similarity of the existing business, Expected life,
Flexibility, Competition

Q. What are the problems in the project execution?


Ans:- Organizational/ Behavioral, Financial, Legal,Engineering, Construction/ Installation,
Site evacuation/ development, Labor unrest/ unavailability, Non-availability of resources,
Weather conditions

Q. Human issues in Project management?


Ans:- Communication, Conflict Management, Leadership and motivation, Organizational
structure, Selection of the project manager

Q. What are the criteria for project planning?


Ans:- Forming a project team with a leader, Defining scope and term of reference of work,
Work breakdown structure, Basic Scheduling, Time cost tradeoffs, Resource consideration.

Least Cost Method

1)What is LCM?
The Least Cost Method is a method used to obtain the initial feasible solution for the
transportation problem.
2)Least Cost Method is also known as the?
Matrix Minima Method
3)Who invented LCM?
F.L. Hitchcock
4) LCM was invented in which year?
1941
5)How the allocation is done in LCM?
The allocation begins with the cell which has the minimum cost.
6)What is the relation between supply and demand in LCM?
Supply should be equal to demand.
7)In LCM what is done if the supply is more?
In case the supply is more, the dummy source is added to the table with demand being
equal to the difference between supply and demand, and the cost remains zero.
8)In LCM what is done if the demand is more?
In case the demand is more, the dummy destination is added to the table with the supply
equal to the difference in quantity demanded and supplied and the cost remains zero.
9)What are the steps to solve the transportation problem using LCM?
i)Select the smallest transportation cost cell available in the entire table and allocate the
supply and demand.
ii)Delete that row/column which has been exhausted. The deleted row/column must not
be considered for further allocation.
iii)Again select the smallest cost cell in the existing table and allocate. (Note: In case, if
there is more than one smallest cost, select the cells where maximum allocation can be
made)
iv)Obtain the initial basic feasible solution.

Inventory management:
1. What does EOQ mean?
The economic order quantity (EOQ) is a company's optimal order quantity for minimizing its
total costs related to ordering, receiving, and holding inventory

2. You are low on supplies when a client places an urgent order?


We can inform the client about the situation or create a backorder stock so that customer can
place urgent orders

3. Can forecasting help in controlling inventory?


Inventory forecasting helps with overall inventory management. It helps with inventory storage
space management because you buy only what you need and stock only those products instead
of ordering too much.

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