Section A Answer all questions in Section A Choose relevant

Section A: Answer all questions in Section A. Choose relevant answers for the multiple choice questions in this section. i. The total inventory costs for material resources in a manufacturing industry is the sum of: á.Total ordering cost+total holding & carrying cost b.Total ordering cost+ total holding & carrying cost+shortage cost+ other related costs c. Total ordering cost+total holding cost+purchase cost-shortage cost d.The total fixed costs of materials supply+opportunity costs e.None of the above li. In a precast concrete block manufacturing unit, the reorder level of raw materials will depend iuponrcan a. Lead time b. Whether the demand is deterministic or probabilistic C. The risk one can take in case of probabilistic demands d.All of the above ili. Rider Jessie is a project manger in an airport expansion project. Rider\'s project team is concerned that if they do not have adequate surplus materials, overall project might be delayed and large cost overruns in some key works are expected. Moreover, the procurement division alerted that the market forecast for structural steel is not very good. Rider\'s resource strategy should be: a. Just in time (JIT) b.Just in case (JIC) c. Both (a) and (b) d. None of the above High hazard facilities are risky for major accidents-because enormous quantities of hazardous materials are iv. a.kept in storage b.handled in operations c. both (a) and (b) d. all of the above

Solution

(i) Answer:- (a) Total ordering cost + total holding & carrying cost

(ii) Answer:- (d) All of the above

(iii) Answer:- c      Both (a) and (b)

(iv) Answer:- (a) Kept in storage

(v) Answer:- (c ) obsolete

(vi ) Answer:- (b) Obsolescence and deterioration costs for materials.