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L4M7 Quick Exam-Ready Summary:
- Core Module
- Objective / Response Exam
- 1.5 hours Exam duration
- 60 Questions in exam
- 6 Credits Score
Inventory Storage & Movement
Warehouse design, product coding (RFID, barcode), automation, equipment types
Inventory Control
Inventory classification, cost categories, forecasting, control systems (MRP, JIT, ERP), KPIs
Whole-Life Costing
TCO components, cost model construction, hidden costs, disposal, legal & environmental factors
CIPS L4M7 Focus Areas – 2025 (Master List)
“These are core learning areas, but CIPS may include questions from other parts of the syllabus.” ⚠️
1. Methods for Storage and Movement of Inventory
- Store & Warehouse Design:
- Optimal location, layout, and design considerations
- Importance of flow, spatial efficiency, and flexibility
- Product Coding & Tracking Systems:
- Types: barcode, QR code, RFID
- Applications in order tracking and identification
- Warehouse Equipment & Automation:
- Materials handling equipment (e.g. conveyors, forklifts)
- Pallets, unit loads, containerisation, packaging standards
- Automation technologies in warehousing
2. Key Elements of Effective Inventory Control
- Inventory Classifications:
- Types include opening stock, raw materials, work in progress, safety stock, finished goods, obsolete/redundant items
- ABC stock classification and dependent vs. independent demand items
- Costs of Holding Inventory:
- Acquisition, holding, and stock-out costs
- Strategies to reduce costs without compromising service levels
- Inventory Control Techniques:
- Forecasting: subjective vs. objective
- Reorder quantities and levels
- Use of MRP/MRP II, ERP, just-in-time (JIT), lean methods
- Performance metrics: lead times, stock turns, service levels, stock cover, stock-outs
3. Whole-Life Costing Concept
- Total Cost of Ownership (TCO) Components:
- Cost drivers: purchase price, hire/lease, acquisition, usage (maintenance, operation, utilities, training), disposal/end-of-life costs
- Building a Whole-Life Cost Model:
- Guidelines: include all cost elements, use best available data, account for hidden costs (e.g., extended supply chain risks)
- Apply only for significant purchases, with senior management and cross-functional support, and team collaboration to expedite data collection
- End-of-Life Cost Factors:
- Decommissioning, removal, disposal (including closed-loop recycling), legal and environmental considerations
- Align with triple bottom line approach: people, planet, profit CIPS Official
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