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CIPS - Whole Life Asset Management (L4M7) paper *7.
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1.
Inventory items are classified by unit cost in the ABC approach, with ‘A' items being the most expensive and ‘C' items being the cheapest. Is this statement correct?
2.
What factors should an organisation take into account when it decides to get rid of outdated and surplus stock? Select TWO that apply.
3.
What is a key requirement for successful just-in-time implementation?
4.
Lisa is operating a small gift shop, Due to increase in customer demand, Lisa decided to apply an SKU system to her product. What is the benefit of this?
5.
Alarm systems are often used to enhance the security of a warehouse. What is an essential component of these systems?
6.
A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days. What is the holding cost of this beer pallet?
7.
Which of the following is the formula to calculate the Life Cycle Cost (LCC) of an asset?
8.
Which of the following are features of product codes?
1. Product codes link to products' characteristics
2. A product code must comply with international standards
3. Many internal processes use the product codes as facilitators
4. There are no duplicate product codes
9.
XYZ Ltd uses MRP system for years and benefits from its efficiency and cost-savings. However, MRP system only manages the production process and XYZ management team wants to see the resources needed for the whole organisation. What software system can help XYZ management team with this goal?
10.
Which of the following statements is true?
11.
If everything else stays the same except one thing, what makes the net present value of a capital expenditure go up?
12.
Which of the following is the purpose of inventory optimization?
13.
What costs does the EOQ reduce to the lowest level?
14.
What is the smallest aisle width that standard counterbalanced forklifts can operate in?
15.
What does the triple bottom line mean?
16.
Simba has a small bakery and he wants to know his reorder point for flour. He uses up to 12 bags a day and his supplier can take up to 6 days to deliver. On a typical day, he uses 5 bags a day and his supplier takes 4 days to deliver. When should Simba order more flour?
17.
The following are examples of scheduled maintenance except...?
18.
A big investment bank wants to buy a complex banking system that will work with different applications at different times of the day. The system needs to pass various tests by the in-house team and off-shore testing consultants together. The tests will be done in a shared environment with limited resources and overseen by the on-shore development team. The costs for testing are generally classified as...?
19.
XYZ Ltd wants to determine the safety stock level of a strategic material for its new product - DMD. It needs to forecast the future demand for this product. It invites external consultants and cross-functional team members to a meeting. They answer questionnaires anonymously and see the "group response" as a statistical summary. They repeat this process until they reach a closer agreement. What forecasting method is XYZ Ltd using?
20.
The manufacturer needs more stock for seasonal demand, but they have few resources. What could help them achieve their goal?
21.
ANTA Logistics wants to offer its customers a new, integrated cold chain facility, “Chill Hub”. What factors should it consider when choosing the location for this facility? Select TWO that apply.
22.
What term describes the excess amount of goods that are stored in case there is a sudden increase in demand or problems in the supply chain that could lead to running out of stock?
23.
With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?
24.
The amount of inventory available at the start of an accounting period is known as...?
25.
What are some warehouse layouts that have cross aisles and picking aisles that intersect at angles other than 90 degrees?
1. 'Fan' shaped layout
2. Herringbone-shaped layout
3. U-shape layout
4. L-shape layout
26.
What are some warehouse layouts that have cross aisles and picking aisles that intersect at angles other than 90 degrees?
27.
Which of the following best describes the term ‘periodic review’?
28.
What is the stock turn for a store holding products to the value of £250,000 with annual sales of these products amounting to £1,000,000?
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