Interview Questions Material Requirement Planning: Store
Interview Questions Material Requirement Planning: Store
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.
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.
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.
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).
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
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.
Two way ANOVA: When we test twice for the same group.
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
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.
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.
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.
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.
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.
Standard deviation/z-score
Interquartile range (IQR)
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.
DBMS
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.
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.
Process Analysis
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.
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.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
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