INDUSTRIAL MANAGEMENT AND ENGINEERING ECONOMY FOR

MODEL EXAM

Choose the best answer.

1. Which one of the following is not unifying force of management ?
A. Employee C. Being week in decision making
B. Financial resource D. land/equipment
2. ________ is set for temporary time to accomplish certain project work under which few
specialist from different discipline work as team and after project completion they go back to
their role.
A. Line organization C. matrix organization
B. Functional organization D. line & functional organization
3. The following are elements of good forecast except:
A. Written C. Reliable
B. Accurate D. Difficult to use
4. ________is the most effective arrangement and coordination of the physical plant facilities to
allow greatest efficiency in the combination of men, materials and machines necessary for
operation of any unit of a plant or business.

A. Plant design C. Plant location

B. Plant layout D. Product design
5. Which one of the following is not the outcomes of a good plant layout?
A. Maximizing material handling C. worker convenience & job satisfaction
B. Integrating the production centers D. Effective utilization of available space
6. The cost of inspection, handling, accounting and auditing are included in______________
A. Ordering cost C. Carrying cost
B. Set up cost D. Cost of shortages
7. Which one of the following sentence is correct about critical path:

A. It doesn’t help to determine the amount of float C. It is used to calculate earned value
B. It identifies the particular important activities D. It is used to determine partial time
duration of project
8. Buffer added to on hand inventory during lead time is known as____________
A. Lead time C. Stock out
B. service level D. safety stock
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9. Economic order quantity is the quantity at which the cost of ordering is_____________
A. minimum C. less than the cost of carrying
B. equal to the cost of carrying D. equal to the cost of over stocking
10. Calculating latest start (LS) and latest finish (LF) times perform a:________________
A. Backward passes C. Lateral passes
B. Forward passes D. Critical passes