Ques 1.

Why do organizations need inventory ?

Ques 2.

What are objectives of inventory management ?

Ques 3.

Describe various types of inventory used in manufacturing setup.

Ques 4.

Describe various costs related to inventory.

Ques 5.

) What do you understand by Economic Order Quantity (EOQ) ? Explain EOQ

using suitable diagram.

Ques 6.

Discuss the fixed quantity order model of inventory control system with a

suitable diagram.

Ques 7.

A television manufacturer requires 24000 pieces of wire (each 2 cm long)

every month for assembly. Ordering cost per order is Rs. 2000 and carrying (or

holding) cost is 25 percent of the unit price. The price per unit of a piece is Rs. 5.

Assuming delivery is instantaneous, find the economic order quantity (EOQ) and

the reorder point.

Ques 8.

Discuss the ABC classification inventory using a suitable diagram

Ques 9.

What are advantages and limitations of using this classification method ?

Ques 10.

A company has the procurement pattern of five items irrespective of their level of

demand as given in the table 1:

Table 1

Item No. Annual Demand (Rs.) No. of orders per year Order Size (Rs.)

Reduce the inventory levels while keeping total number of orders per year the

Ques 11.

What do you mean by independent demand and dependent demand ? Give

examples of each.

Ques 12.

Describe any four major reasons to do demand forecasting.

Ques 13.

Demand for a certain auto component part for the last six months is given in the

Table 2.

Table 2

Month Demand (no. of units)

(a) Forecast the demand of auto component for the month of July using 3-months

moving average method.

Ques 14.

Calculate forecasting error using MAD 5

Ques 15.

Discuss the merits of proper stock accounting system.

Ques 16.

Discuss the merits and demerits of annual stock verifications.

Ques 17.

Discuss the FIFO price method of costing of stock issued and valuation of stock

in hand.