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Using consignment stocking with suppliers can assist with flexible warehousing when space is at a premium in the warehouse. Another advantage of using the consignment stocking approach is that ...
Which of the following are typical considerations that an environmentally responsible manufacturer should take into account? Select the TWO that apply.
In order to control the costs of holding inventory, the manager has decided to install CCTV cameras in the warehouse. This will help to deter potential pilferage (theft) by the warehouse operatives. Is this the correct way of managing costs of holding inventory?
Which of the following is a stock holding cost?
The physical characteristics of holding stock can affect the cash flow of an organisation. What are the main costs to be considered when valuing the cost of stock?
Which of the following factors can be considered when selecting the location of a new warehouse facility? Select THREE that apply.
Amanda is the purchasing manager for AB Construction based in France. Amanda is considering purchasing an asset from overseas, but knows- she must account for fluctuations in exchange rates in the contract for purchasing the asset. Is Amanda correct?
Nuclear Energy Group Limited (NEG) has a number of investment options currently under appraisal. As these are all long-term investments (more than 30 years) NEG is adopting a total cost of ownership approach. It has gathered data on all associated costs over the life of the investment. Which of the following will be regarded as end-of-life costs?
Which of the following factors should be considered when decommissioning and disposing of a machine at the end of its useful life? Select TWO that apply.
When considering purchasing a piece of equipment internationally, there are a number of risk factors that need to be considered. Which of the following are risks associated with international purchasing?
- Costs associated with tariff and non-tariff barriers to trade
- Whether the equipment will operate in the language of the purchasing country
- Costs associated with fluctuation on currency exchange rates
- Costs associated with getting the equipment operating manual translated
Jones Warehouse Services Limited has been using a manual handling system to move items throughout its Warehouse. This setup is slow, uses more labour resources than automated systems and recently, several errors and inaccuracies have been uncovered in an audit. The company wants to introduce a system that minimises human errors, lowers workplace risks and reduces labour costs. Which of the following is a fast and efficient mechanical handling system for transporting a variety of different materials within a warehouse?
An organisation might find it more beneficial to lease and use an asset over a predetermined period. After this period the lessee has the right to secure an outright ownership of the asset by paying an agreed amount, otherwise the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?
Techstar has acquired new machinery for producing packaging for the food sector. The procurement officer at Techstars is calculating the likely costs relating to this acquisition. Which of the following are classified as acquisition costs? Select TWO that apply.
The acquisition costs associated with the ordering of inventory involves a number of activities. Which of the following best describes the preliminary acquisition costs that need to be considered when procuring inventory?
An organisation has invested in an asset management system to enable them to keep a record of what assets they have, when they were installed, where they are located and what condition they are in. Is this an advantage to the organisation?
One of the problems with globalised extended supply chains is that they can be vulnerable to external global risks. Which of the following describe external risks? Select TWO that apply.
When designing the layout of a warehouse or stores area one of the factors to consider is the width of the aisles between the racking·. Which of the following is a main consideration when calculating the aisle width?
Is it correct to say that the type of goods that a warehouse will be required to hold affects the way that the warehouse is designed and built?
A manufacturing organisation has a large volume of raw material stock now viewed as redundant. Which of the following is the most appropriate process for the organisation?
A major retail organisation currently wishes to significantly increase stock to meet seasonal demand but has limited cash resources. Which of the following techniques will provide the greatest impact?
The managing director of a building company has stated that the company cannot enter into any further rnonth.ly fixed cost arrangements. The construction manager had intended to acquire new machinery under a hire purchase agreement. Will he be able to go ahead with the purchase?
A logistics consultant has been asked by the directors of XTC Ltd, a retail outlet, to advise on the key considerations that could influence the location of their planned warehouse building. Which of the following considerations are likely to be given by the consultant for the location of the warehouse?
- Proximity to the consumers of the goods sold by XTC Ltd to minimize distribution costs
- Proximity to the airport for ease of travel by top management staff when they take annual leave
- Access to the road network as the logistics consultant is likely to make regular visits by road to follow up on the progress of XTC Ltd
- Access to the appropriate, local, labour force as retail warehousing is likely to be labour intensive, and this should be readily available
A construction organisation requires specialist equipment for digging deep foundations. Which of the following circumstances would result in the hire of equipment rather than leasing it?
RFID, or Radio Frequency Identification, is fast emerging as a major commercial technology. Like every new technology, it has advantages and disadvantages. An advantage of using RFID is that ...
Which of the following are examples of acquisition costs for the buying organisation? Select TWO that apply.
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