Stores Procedures and Materials Management - MCQ from Study Material (Basic Level) - LDCE Mock Test

Stores Procedures and Materials Management deals with the efficient flow of materials—from planning and purchase to safe storage, issue, and disposal. It focuses on cost control, quality preservation, and timely availability of items for production and maintenance. Proper coding, stocking, verification, and handling minimize waste and losses. Study the key processes below and then test your understanding with practice MCQs.

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Stores Procedures and Materials Management

1 / 30

Disposal of non-ferrous scrap and items costing above Rs. 50,000/- is arranged by which method?

Advertised Tender Enquiry

Negotiation with registered scrap dealers

Public Auction

Single Tender Enquiry

2 / 30

According to the manual, what is the maximum acceptable variation (either excess or short supply) in quantity that can be condoned in a contract?

10%

3 / 30

In the context of the Kanban system, what is the purpose of Rule 3, which states 'Defective products should not be sent to the subsequent process'?

To ensure the final customer receives a perfect product.

To stop the production line and make the problem visible to everyone, preventing recurrence.

To assign blame to the preceding process for creating the defect.

To save the cost of transporting defective items.

4 / 30

What is the main advantage of a centralized store system?

Faster delivery of items to all user departments

Less internal documentation is required

Reduced transportation costs for materials

Inventory can be kept to a minimum

5 / 30

For how long must an Inter Factory Demand (IFD) be preserved by both the indenting and supplying factories?

3 years

5 years

8 years

10 years

6 / 30

What is the maximum quantity to which a repeat order is normally restricted, in relation to the last order quantity?

There is no restriction on the quantity

50%

25%

100%

7 / 30

Who is responsible for the physical verification of stock in Ordnance Factories as an independent body?

The Quality Assurance Officer

The Local Accounts Officer (LAO)

The D.G.O.F. Stock Verification organization

The General Manager's appointed committee

8 / 30

What is the FIFO principle in storekeeping?

First In, First Out

Fast In, Fast Out

Firm In, Firm Out

Final In, Final Out

9 / 30

In stores preservation, how should gas cylinders be stored?

Horizontally in stacks to save space

Directly on the floor, close to the point of use

In any open area for good ventilation

In an upright position in special racks in a cool place

10 / 30

Which type of Letter of Credit (LC) is most commonly used and cannot be cancelled without the consent of all parties?

Sight Credit LC

Revolving Credit LC

Revocable LC

Irrevocable LC

11 / 30

What is the policy regarding marine insurance for government goods imported from overseas?

The overseas supplier is always responsible for insuring the goods.

Insurance is mandatory only for items exceeding a value of Rs. 1 Crore.

Government goods are ordinarily not insured as a matter of policy.

All imported goods must be insured with a nationalised insurance company.

12 / 30

What is the term for procurement from a single firm because the item is a proprietary product?

PAC Purchase

Limited Tender Enquiry (LTE)

Open Tender Enquiry (OTE)

Rate Contract Purchase

13 / 30

What is the validity period for a vendor registration certificate issued by an Ordnance Factory?

1 year

5 years

2 years

3 years

14 / 30

What is 'material waste' in the context of materials accounting?

Defective goods that can be rectified or sold as seconds

Goods damaged beyond rectification

Material lost in the manufacturing process with no recoverable value

Remnants from operations like turning and trimming that have some value

15 / 30

What is the primary purpose of a Store Holder Inability Sheet (SHIS)?

To authorize the issue of materials from the store to the production shop

To show the net requirement of an item for procurement after considering stock and dues

To report discrepancies or damages in received stores

To list all the items currently held in stock

16 / 30

In the case of an F.O.R. (Free on Rail) station of despatch contract, when is the 'date of delivery' considered to have occurred?

The date the goods reach the consignee's destination

The date the inspection note is issued by the Quality Assurance Officer

The date on which the goods are placed on the rail, i.e., the Railway Receipt (RR) date

The date the goods are tendered for inspection at the firm's premises

17 / 30

When can a repeat order be placed on a supplier?

Anytime within 24 months from the date of the original supply order

Within 12 months from the date of supply against the previous order, and only once

Only if the new requirement is for a different but similar item

If there is an upward trend in the market price for the item

18 / 30

Which document is prepared immediately after tenders are opened to provide an abstract of the quotations received?

Ranking Statement

Data Sheet

Brief for TPC

Spot Comparative Statement (SCS)

19 / 30

What action is taken with tenders received after the specified time for receipt but before the time of opening?

They are opened along with the regular tenders.

They are treated as 'Delayed' tenders but are not opened.

They are treated as 'Late' tenders and returned unopened.

They are considered only if their quoted price is lower than all regular tenders.

20 / 30

What is a 'Rate Contract'?

A contract where the rate is negotiated after every delivery based on market fluctuation.

A contract exclusively for services, where the rate is based on man-hours.

A contract for the supply of stores at specified rates during a specified period, without a fixed quantity.

A contract for a fixed quantity of stores to be delivered at a fixed rate on a specific date.

21 / 30

What does the Just-In-Time (JIT) philosophy primarily aim to eliminate?

The need for quality inspection

Sources of manufacturing waste

The use of multiple suppliers

Manual labour in production

22 / 30

For which category of items is VED (Vital, Essential, Desirable) analysis primarily used?

Finished goods inventory

Spare parts

General purpose stationery

High-value raw materials

23 / 30

What is the term for a sample that a contractor must submit for approval before bulk manufacturing begins?

Advance Sample

Reference Sample

Tender Sample

Production Sample

24 / 30

In inventory management, what does the 'A' in ABC analysis typically represent?

Items that are sourced from Abroad or are imported

A small percentage of items that account for a high percentage of total consumption value

Items that are Absolutely essential for production, regardless of cost

Items that are most frequently issued from the store

25 / 30

What is the purpose of a Performance Security Deposit furnished by a supplier?

To compensate the purchaser for any loss due to the supplier's failure to fulfil contractual obligations

To cover the cost of tender documents and administrative fees

To ensure the supplier participates seriously in the tender process

To serve as an advance payment to the supplier for starting production

26 / 30

Under what condition is an Open Tender Enquiry (OTE) the preferred mode of procurement?

For items required from a limited list of registered and established vendors

For common use items with generic specifications available from many sources

When there is extreme urgency for operational requirements

For proprietary articles available from a single source

27 / 30

What is the standard monthly rate for recovering Liquidated Damages (LD) for delayed supplies?

5% per month

10% per month

0.5% per month

2% per month

28 / 30

What is the primary objective of the '5S' practice of 'Seiri' (Organization)?

To arrange all items neatly in a designated place

To distinguish between necessary and unnecessary items and remove the latter

To clean the workplace and remove all dust and grime

To create a disciplined mindset to follow all procedures correctly

29 / 30

What does the term 'Stores' generally exclude, according to the provided definition?

Plant and machinery

Consumable and expendable articles

Furniture and equipment

Books, publications, and periodicals in a library

30 / 30

In the context of procurement for Central Government departments like Ordnance Factories, who is legally considered the 'Purchaser'?

The Ministry of Defence

The General Manager of the specific factory

The President of India

The Director General of Ordnance Factories (DGOF)

Your score is

The average score is 51%

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Stores Procedures and Materials Management – MCQ from Study Material (Basic Level)

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