Stores Procedure - MCQ from Study Material (Basic) - LDCE Mock Test

Store procedure management involves the systematic handling of materials from their receipt to issuance and preservation. It ensures that required items are available in the right quantity, quality, and condition at the right time. Effective store procedures help maintain inventory control, prevent deterioration and obsolescence, streamline supply chain functions, and optimize overall operational efficiency.

Study Material Links:

Study Material

Stores Procedure

1 / 26

What is described as one of the primary service objectives of the stores function in an organization?

To negotiate the best prices with all suppliers of raw materials.

To add value to the final product through careful storage.

To set the production schedule for the factory based on material availability.

To make available a balanced flow of materials and components to meet operational requirements.

2 / 26

The SDE classification system for inventory is based on what criterion?

The unit price of the material.

The annual consumption value of the items.

The problem faced in the procurement of items.

The source of supply for the material.

3 / 26

If a successful bidder at a public auction fails to lift the purchased material within the stipulated time, what penalty is applied?

They forfeit their entire payment and the material is re-auctioned.

The earnest money deposited before the auction is confiscated.

They are permanently banned from participating in future government auctions.

They must pay ground rent for the unlifted material.

4 / 26

What is one of the three essential prerequisite conditions for the Kanban system to work effectively?

Maximizing the number of single-function workers to increase specialization.

Smoothing of production to minimize fluctuations in the final assembly line.

Increasing the level of safety stock for all components.

Ensuring the oldest production machinery is utilized first to manage depreciation.

5 / 26

Which of the following is listed in the document as a common reason for discrepancies between physical stock and Bin Card records?

Frequent changes in the market price of the material.

Deliberate over-ordering of stock by the purchasing department.

Planned obsolescence of the material by the manufacturer.

Posting an entry on the wrong Bin Card.

6 / 26

In the context of issuing warrants, what is the 'Except System'?

A system used exclusively for issuing warrants for tool manufacturing and maintenance.

A system where there is only one warrant number for a main assembly and all its components.

A system where warrants are issued only for exceptional or high-priority orders.

A system where separate warrants are issued for the components and sub-assemblies of a product.

7 / 26

The modern concept of stores organisation suggests placing the stores department under which functional head?

The Materials Manager, as it is part of the overall materials management function.

The Sales Manager, as it holds the finished goods for sale.

The Finance Manager, as materials represent a significant financial investment.

The Production Manager, as it is part of the production process.

8 / 26

What is the time limit for formal claims on the Railways regarding loss or damage to a consignment?

Within one year from the date of landing.

Within seven days after the termination of transit.

Within 3 days of the goods landing.

Within six months from the date of the Railway Receipt.

9 / 26

According to the general guidelines, a factory can arrange for the disposal of scrap by public auction only if a certain condition is met. What is that condition?

The material is required by a sister factory.

The items have been declared surplus by a Technical Team.

The cost of the scrap or waste products is below Rs. 50,000.

The items for disposal are non-ferrous scrap.

10 / 26

What document must be presented to the storeholder to draw materials for use in the factory?

A Goods Received Note from the supplier.

A Material Demand Note signed by an authorized person.

A verbal request from the section in-charge.

A copy of the weekly production schedule.

11 / 26

The VED classification system for inventory is most applicable to which category of stores?

Finished goods ready for sale.

Raw materials for production.

Spare parts for machinery and equipment.

Office stationery and supplies.

12 / 26

What does the term 'surplus' mean in the context of stock management?

The quantity of an item in stock is more than is reasonably necessary.

The item is no longer usable by the business due to a change in technology.

The item is going out of use but is not yet completely unusable.

The item has not been issued from the stores for a period of one year or more.

13 / 26

Which organization is responsible for issuing recommendations and technical bulletins regarding the preservation of Defence Stores?

The Ministry of Finance (Defence).

The Inter Services Stores Preservation Organisation (I.S.S.P.O.).

The Director General, Ordnance Factories (DGOF).

The individual Factory's Stores Preservation Committee.

14 / 26

In the 10-digit code example for an electric lamp (1524104041), what do the first two digits, '15', represent?

The wattage of the lamp (100 watts).

The voltage rating of the lamp (230 Volts).

The specific type of item (Bulb).

The major category of the item (Electrical Items).

15 / 26

What is identified as a major disadvantage of a centralized store system?

Extra handling and transportation are required to move materials to production units.

It makes the standardization of common parts and equipment more difficult.

It requires a larger number of staff due to duplication of records.

It leads to higher overall inventory levels across the organization.

16 / 26

What are the two main expenditure components that make up the cost of store-keeping?

Transportation costs for incoming goods and insurance costs for stored items.

The purchase cost of raw materials and the selling price of finished goods.

Capital expenditure on infrastructure and revenue expenditure on operations.

The cost of inventory control software and the cost of security personnel.

17 / 26

The Perpetual Inventory Method of stock verification, as used in Ordnance Factories, involves what procedure?

Using computer software to estimate stock levels based on receipts and issues, without physical counting.

Closing the entire factory for a short period once a year to count all items.

Verifying the stock of an item only when a new order for it is placed.

Checking a small number of items each day on a rotational basis throughout the year.

18 / 26

In the context of carriage by sea, what does a 'Clean Bill of Lading' signify?

That the goods are insured against all possible risks during their transit.

That the freight charges for the shipment have been fully paid in advance.

That the customs duties for the destination port have been pre-paid.

That the goods were received by the carrier in good order and condition.

19 / 26

What is the primary function of a Material Warrant in the factory system described?

To provide detailed instructions on the labour operations required for manufacturing.

To act as a record of finished goods that have been inspected and are ready for dispatch.

To request the purchase of new materials when stock levels are low.

To authorize shops to draw the required materials from the stores for a specific job.

20 / 26

How does the document differentiate between an 'obsolescent' item and an 'obsolete' item?

'Obsolescent' means an item has expired shelf life, while 'obsolete' means it is damaged.

'Obsolescent' means an item is going out of use, while 'obsolete' means it is no longer usable at all.

There is no difference; the terms are used interchangeably.

'Obsolescent' means the stock quantity is too high, while 'obsolete' means there is no stock left.

21 / 26

In the ABC analysis for inventory control, 'A' items are defined by which characteristic?

They are items that are critical for production but are easy to procure.

They are a small number of items accounting for a high percentage of annual consumption value.

They are the largest items in terms of physical size and weight.

They are items that are purchased most frequently throughout the year, regardless of their cost.

22 / 26

In the context of disposal by public auction, what is the purpose of fixing a 'Reserve Guiding Price'?

To determine the maximum price for which the items can be sold.

To calculate the government auctioneer's commission before the auction begins.

To establish a minimum acceptable price for the auctioned items.

To inform potential bidders of the item's original purchase cost.

23 / 26

What is the simple, central idea of the Just-in-Time (JIT) inventory system?

To produce and deliver goods just in time for their next stage of use or sale.

To order materials in the largest possible quantities to achieve bulk purchase discounts.

To use a fully centralized computer system for all production planning and control.

To maintain large buffer stocks to prevent any possible production stoppage.

24 / 26

What is a primary benefit of implementing a scientific store identification and codification system?

It guarantees that all materials will be purchased from the cheapest supplier.

It eliminates the need for physical stock verification.

It avoids duplicate stocks of the same item being held under different descriptions.

It automatically triggers re-orders when stock levels are low.

25 / 26

According to the document, what is a key advantage of a centralized store system?

Minimization of transportation from the store to production units.

Lower risk of total loss in case of a fire.

Reduced need for internal documentation and paperwork.

Better control is possible and overall inventory can be kept to a minimum.

26 / 26

What is the primary conflict that a stores function must manage, as described in the source material?

The needs of the production department versus the demands of the sales department.

The speed of issuing materials versus the accuracy of stock records.

The cost of capital expenditure on buildings versus the revenue expenditure on salaries.

Providing good service by holding ample stock versus keeping inventory costs at a minimum.

Your score is

The average score is 59%

Disclaimer:

This website is an independent educational resource intended solely for practice purposes. The questions and answers provided here are based on general study materials and do not represent official exam content or an authentic answer key. As our team manually enters MCQ questions into the database and the system generates tests automatically, minor errors may occasionally occur. We are not responsible for any issues arising from such errors. In case you encounter any discrepancy, please report the specific question via email or through the ‘Contact Us’ page, or use your own knowledge to evaluate it. ldcemocktest.in does not earn any revenue from this platform—it is a completely free service provided to support learners. This website assumes no liability whatsoever for any consequences resulting from the use of its content.

Stores Procedure – MCQ from Study Material (Basic)

Study Material Links:

Disclaimer:

2 Comments

Leave a Reply Cancel reply