MB09
SECOND SEMESTER MBA (SUPPLY CHAIN MANAGEMENT)
EXAMINATION AUG/SEP - 2015
INVENTORY MANAGEMENT
TIME: 3HOURS
MAX MARKS: 75
Section A
Answer the following questions.
1.
What is inventory carrying cost?
2.
What is DRP?
3.
What is ABC costing?
4.
What is SMI?
5.
What are three bin systems?
2X5 =10
Section B
Answer any five questions:
6X5= 30
1. Explain the meaning of transit stock, cycle stock and anticipation stocks. Discuss
means to reduce anyone of them.
2.
“Work in process inventory is directly proportional to the Length of production
cycle”. Comment on this statement.
3.
Explain the various quantitative techniques used in forecasting?
4.
How accounting for receipts and return /scrap valuation is done?
5.
Establish the relationship between JIT, MRP and DRP.
6.
Explain the different modules that go into the MRP system?
7.
Give briefly the inventory classification for selective inventory
control?
Section C
Answer any two questions
10X2= 20
1.
a.
Write short notes on the following:
Delphi method
b.
Ordering cost
c.
Vendor managed inventory
d.
80:20 principle.
e.
ASRS
2.
Discuss the few steps that can be adopted to control WIP?
3. Explain relationship between manufacturing lead time and level of
work in progress inventory in batch production.
4.
In a company, Maximum daily requirement= 800 units
Time required to receive emergency supplies – 4 days
Average daily requirement- 700 units
Minimum daily requirement- 600 units
Time required for refresh supplies- one month (30 days)
Calculate ordering point or reorder level?
Section D
Answer one question.
1.
1X 15 = 15
A company buys 2000 pencils per year at Rs. 1 each. The ordering cost is Rs. 10
per order. Inv carrying cost is 16% per annum . Find EOQ, no. of orders and total
inventory cost.
2.
Describe how the materials manager of an engineering company can
practice an effective control of maintenance spares especially of spares of
machinery which are imported ones.
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