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NDDB and dairy cooperative recruitment Dairy Business Management & Marketing: practice questions

NDDB and dairy cooperative recruitment · India · National Dairy Development Board; state cooperative milk federations

Original practice questions written to the published syllabus · not past papers
10worked here, free
85written to this exam in this subject
12syllabus units

What this subject covers

Running a dairy company or plant: operations, supply chain, marketing, finance and people.

In the exams: ICAR AICE subject 35a Unit 8 (product development, test marketing); agribusiness sector electives (dairy); NDDB and dairy cooperative management recruitment

What NDDB and dairy cooperative recruitment asks from it

NDDB and dairy cooperative recruitment (India)

Practical management of procurement, chilling, plant operations, distribution and cooperative business: capacity utilisation, milk-shed and BMC economics, route planning, product costing and break-even, ratio analysis. Questions are written per vacancy and are applied rather than theoretical.

Where the 85 questions fall

How our questions for NDDB and dairy cooperative recruitment spread across the units of Dairy Business Management & Marketing. Difficulty: 22 easy, 41 medium, 22 hard.

Procurement and milk-shed management8
Inventory management of perishable products8
Distribution and route planning8
Dairy brand marketing and consumer research8
Costing and pricing of dairy products8
Human resource management in plants8
Industrial safety and labour law8
Corporate social responsibility and sustainability reporting8
Organisation of dairy enterprises7
Production planning and plant capacity utilisation6
New product development: stage-gate process4
Financial statements and project appraisal4

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Organisation of dairy enterprises · medium

Why does a dairy cooperative usually face a bigger seasonal surplus problem than a private dairy of the same size?

  1. It is barred by cooperative law from making storable products such as milk powder or butter
  2. It normally accepts all the milk its members offer, so flush-season surplus falls on the plant
  3. Its members produce milk only in the flush season and stop supplying entirely in the lean season
  4. It must sell all milk as liquid milk within its own district under the cooperative principles
Answer and working

B. It normally accepts all the milk its members offer, so flush-season surplus falls on the plant

Assured acceptance of members' milk is a core service, so the plant must convert the flush surplus into balancing products. A private buyer can limit purchases to what it can sell. Cooperatives are not barred from making powder or butter, and members supply all year, only in smaller lean-season volumes.

2 · Production planning and plant capacity utilisation · easy

Overall equipment effectiveness (OEE) of a packing line is calculated as:

  1. Availability x performance rate x quality rate
  2. Availability + performance rate + quality rate, divided by three
  3. Actual output / design capacity of the plant
  4. Good units / total units produced in the shift
Answer and working

A. Availability x performance rate x quality rate

OEE multiplies the three losses: downtime, speed loss and rejects. Averaging the three overstates effectiveness; actual over design capacity is utilisation; good over total units is only the quality rate.

3 · Production planning and plant capacity utilisation · medium

In the flush season a cooperative dairy converts surplus milk mainly into which products, to be used or sold during the lean season?

  1. Pasteurised toned milk and curd
  2. Skim milk powder and butter
  3. Fresh paneer and set yoghurt
  4. Flavoured milk in glass bottles
Answer and working

B. Skim milk powder and butter

Powder and butter (or ghee and butter oil) store for months and can be recombined into milk later; they are the classic balancing products. Toned milk, curd, paneer, yoghurt and flavoured milk have short shelf lives and cannot carry solids across seasons.

4 · Procurement and milk-shed management · medium

A bulk milk cooler has annual fixed costs of 120,000 and running costs of 0.30 per litre. It handles 1,000 litres a day all year. What is the chilling cost per litre?

  1. 0.33
  2. 0.30
  3. 0.63
  4. 120.30
Answer and working

C. 0.63

Fixed cost per litre = 120,000 / (1,000 x 365) = 0.33; total = 0.33 + 0.30 = 0.63. 0.33 omits the running cost; 0.30 omits the fixed cost; 120.30 divides the fixed cost by daily rather than annual litres.

5 · Inventory management of perishable products · hard

A frozen starter culture is used at 2,400 units a year; ordering cost is 400 per order and holding cost is 4 per unit per year. The culture's shelf life is two months. What is the largest sensible order?

  1. 400 units, set by shelf life
  2. 693 units, the EOQ
  3. 2,400 units, one year's use
  4. 200 units, one month's use
Answer and working

A. 400 units, set by shelf life

EOQ = sqrt(2 x 2,400 x 400 / 4) = 693 units, about 3.5 months' use, which exceeds the two-month shelf life. Two months' use is 2,400 / 12 x 2 = 400 units, so shelf life caps the order. A full year's stock would expire; one month's use is safe but not the largest sensible order.

6 · Distribution and route planning · easy

In dairy distribution, empty crates and unsold product returned from outlets form:

  1. A reverse flow that must be planned and costed
  2. A cost borne only by the retailer
  3. An item recorded only in the quality register
  4. Stock that can be resold as fresh
Answer and working

A. A reverse flow that must be planned and costed

Crates must come back for reuse and returns must be counted, disposed of and charged under the trade terms; both use vehicle space and staff time. Who bears return cost depends on the agreement, and returned fresh product cannot be resold as fresh.

7 · Distribution and route planning · hard

A raw milk collection route must reach the chilling centre within a time limit after milking. Compared with a product delivery route, which extra constraint does this add to route planning?

  1. A minimum number of retail outlets on each route
  2. A maximum elapsed time from the first pickup to the cooler
  3. A requirement to deliver only in the early morning
  4. A ban on collecting from more than one village per route
Answer and working

B. A maximum elapsed time from the first pickup to the cooler

Microbial quality depends on time to chilling, so collection routes have a maximum duration from first pickup. Retail outlet counts and early-morning windows are delivery-route constraints; routes commonly cover several villages.

8 · New product development: stage-gate process · medium

A set yoghurt that gelled well in the pilot plant shows weak body when made in the factory. This is an example of a failure at:

  1. Scale-up
  2. Idea generation
  3. Gate review
  4. Post-launch pricing
Answer and working

A. Scale-up

Moving from pilot to full scale changes incubation, cooling rates and pump shear, which can alter gel structure. Idea generation and gate review come earlier; pricing does not affect texture.

9 · Costing and pricing of dairy products · medium

In joint-product costing, whey from cheesemaking that has a small market value is usually:

  1. Treated as a by-product credited at net realisable value
  2. Charged with half of the milk cost
  3. Ignored because it has no cost
  4. Costed at the same price per kilogram as the cheese made from the same vat
Answer and working

A. Treated as a by-product credited at net realisable value

A by-product's net realisable value is commonly deducted from the main product's cost, rather than sharing joint cost. Charging it half the milk cost or cheese's price per kg overstates its value; it is not costless, it simply carries no allocated joint cost.

10 · Industrial safety and labour law · medium

A plant records 4 lost-time injuries in 800,000 man-hours. What is the frequency rate per million man-hours?

  1. 5.0
  2. 1.0
  3. 0.5
  4. 50.0
Answer and working

A. 5.0

Frequency rate = 4 x 1,000,000 / 800,000 = 5.0. 1.0 is the OSHA-style rate on a 200,000-hour base; 0.5 and 50.0 misplace the decimal.

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Read the subject

Dairy Business Management & MarketingThe full study manual, free NDDB and dairy cooperative recruitmentFormat, sections and how it has changed

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