Motherson Elastomer Interview Questions and Answers

ITR stands for Inventory Turnover Ratio, which measures how quickly a company sells and replaces its inventory.

• ITR is a financial metric used to evaluate the efficiency of inventory management.

• It is calculated by dividing the cost of goods sold by the average inventory value.

• A high ITR indicates that a company is selling its inventory quickly and efficiently.

• A low ITR may indicate that a company is holding too much inv...read more

Minimum, maximum and safety stock are defined based on demand, lead time, and desired service level.

• Minimum stock is defined as the lowest level of inventory required to meet demand during lead time.

• Maximum stock is defined as the highest level of inventory that can be held without incurring excessive costs.

• Safety stock is defined as the buffer stock held to mitigate the risk of stockouts due to demand variability or l...read more

Parameters for costing a product include direct and indirect costs, overheads, labor costs, and material costs.

• Direct costs include raw materials, labor, and manufacturing costs.

• Indirect costs include rent, utilities, and administrative expenses.

• Overheads include depreciation, insurance, and taxes.

• Labor costs include wages, benefits, and training expenses.

• Material costs include the cost of raw materials and any additio...read more