1 Explain all of your answers In those true or false questio

1- Explain all of your answers. In those true or false questions explain when the answer is false 1. Which of the following are the advantages of centralized purchasing? a- Greater knowledge of the technical requirements of each and every department. b- Reduced investment in inventories. c- Capability of taking advantages of market changes d- Greater control can be exercised. 2. Special indents are placed when the ordering level for different items of stocks are reached a- True b- False 3. Which of the following are the objectives of store keeping? a- b- c- d- to provide maximum service at minimum cost to keep the record to co-ordinate with materials control to facilitate perpetual inventory 4. The storage and usage of materials is called inventory control a- True b- False 5. Which of the following departments is generally responsible for inventory management: a- Stores Department b- Purchase Department c- Finance Department d- Sale Department 6. Economic ordering quantity is an essential element of min-max plan. a- True b- False 7. ABC analysis is aimed at selection control of materials a- True

Solution

1 . b :Reduced investments in inventories :In centralized purchasing Investments of stock can be efficiently made as it is handle by one person so the the stock cannot be dead stock as records are maintained as per neccesary requirement.so it helps to minimize the investment on inventory.

1 . c : Capability of taking advantages of market changes :in centralised purchasing the purchase officer has the knowledge about the market conditions as he is controlling about the purchases in the market so if there any changes in the market he can stock or remove the goods as per the market envionment.

1 .d :Greater control can be excercised :There is a better control in centrallisd purchasing.In this the chance of reckless purchase is less because one person is authorized to do purchase for whole organisation .All records with regards to purchase are kept at one place and under the supervision of the purchse officer .this results in economy and have proper control.

2 . False:

Ordering or re-ordering level is between the minimum and the maximum level is fixed .It is the point at which the stock on a particular item has diminished to point where it needs to be replenished .The reorder level of stock often set a figure higher tha a zero.so the above statement is false

3.a : To provide maximum service at minimum cost :Store keeping is an art of preserving raw materials ,work in progress goods and finished goods .so when the order or needs arises we can save time and money and give the the maximum service at lower cost.

3 . d :To facilitate perpetual inventory :Perpetual inventory helps an provides an opprtunity to verify the physical stock of materials .It helps in rapid stock checking .The investment in materials and supplies may be kept at the lowest point . Timely replenishment of stock is facilitated.

4.False.

Inventory control is the function responsible for all decisions about all goods and material in an organization .It helps to make sure the activities and procedures of the right amount of each item is held in stock at any time .

The storage and usage of materials come under material handling or stock control so te above statement is false..