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1.
A light bulb supplier's catalogue shows a list of different products and product codes. Here is an example: SW8C20l. SWBC202, 5WBC203. This supplier is using which of the following product coding structures?
2.
Which of the following costs may be considered to be part of the holding costs of inventory?
- The cost of sales and the cost of ordering of the goods
- The cost of ordering and the cost of pilferage of the goods
- The cost of pilferage and the cost of insurance of the goods
- The cost of insurance and the cost of deterioration of the goods
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3.
One of the classifications of inventory is referred to as 'indirect supplies'. Which of the following items are examples of indirect supplies in a water bottling plant?
- Lubricants for maintenance of production machines
- Computer cartridges for the procurement office
- Reams of printed labels to stick on water bottles
- Blue-coloured plastic caps to seal the water bottles
4.
A procurement manager has been asked to justify the purchase of a large piece of capital equipment valued at £500,000 to internal stakeholders. The procurement manager decided to prepare the justification using a comprehensive formal business case due to the value of the purchase. Were they correct in doing this?
5.
Which of the following are a cost of running out of inventory?
- Loss of production output
- Holding costs
- Cost of idle time
- Placement costs
6.
Which of the following materials handling equipment can be used in the warehouse? Select THREE that apply.
7.
TCD Manufacturing has taken over the operations of a fabric processor in another country. TCD has planned to eliminate some traditional fabric processing that has high risks because of the chemicals used in the dying process. TCD is now preparing for new dying processes to be installed and needs to remove the current tanks and its associated equipment. Which of the following is appropriate to TCD's situation?
8.
In relation to stock management techniques, which of the following are characteristics of 'vendor-owned stock'?
- Buffer levels of stock are purchased
- The supplier retains the title of the stock
- The buyer provides physical storage
- The buyer takes all the financial risk
9.
Under a Hire Purchase Agreement, ownership is transferred to the hirer… o at the beginning of the contract
10.
A procurement manager has discovered that three pallets of components in the stores are obsolete. If these components are written off which of the following are true?
- Stock levels will decrease
- Profits will increase
- Profits will decrease
- Stock levels will increase
11.
The only reason stocks become obsolete is because item have been held in stock for a very long time. Is this a valid statement?
12.
Which of the following is the most appropriate operational pattern for a new large warehouse that is to be equipped with automated guided vehicles (AGVs)?
13.
Long-term forecasting of demand using a subjective method is based on a ...
14.
Following an internal equipment asset audit in a hospital, several pieces of equipment have been identified as reaching the end of their serviceable life and, in some cases, no longer compliant with relevant health and safety standards. To ensure compliance with safety standards, several new pieces of equipment are required. However, the hospital's finance director has advised that due to tough financial pressures, there is not enough capital expenditure to fund all of the necessary equipment purchases. Which of the following will allow the hospital purchasing team to acquire new pieces of equipment despite the lack of capital expenditure available?
15.
A company does not have enough space to hold inventory to satisfy an external foreign market. Therefore, the board of directors have decided that the company would buy stock in bulk and pay a fee for storage to a third-party warehouse provider local to the foreign market. This would allow the company to focus on other aspects of the business. The stock will be called off as and when required. Which of the following strategies is being pursued by this company?
16.
Which of the following techniques is expected to improve the flow (movement) of items in a warehouse?
17.
Which of the following is an acquisition cost under the concept of the total cost of ownership?
18.
What cost factors should be considered for the maintenance and repair of manufacturing equipment?
- Direct labour cost
- Cost of utilities during use of the equipment
- Cost of the goods being sold
- Guarantee and warranty cost
19.
Which of the following are the acquisition cost of Inventory?
- The expediting and invoice processing costs
- The rent and insurance of the building
- The cost of product redundancy and obsolescence
- The cost of receiving the product and conducting quality inspections
20.
Which of the following is a potential cause of stock obsolescence?
21.
The term 'triple bottom line' refers to a method for organisations to measure performance in three ways. What are the terms used to describe the 'triple bottom line'? Select THREE that apply.
22.
Which of the following are benefits of the use of barcoding? Select the TWO that apply.
23.
The selection of the correct type of material handling equipment is important. If the width of the gangway between the racking in a warehouse is 2.4 meters (8 feet), what type of material handling equipment would be suitable?
24.
Which of the following are essential aspects that are required for the successful implementation of Just-In-Time (JIT)? Select TWO that apply.
25.
Which of the following are advantages of a Just-in-Time (JIT) method of inventory management?
- JIT reduces the inventory holding costs for the purchaser
- JIT allows savings from buying in bulk
- JIT enables fast responses to engineering changes
- JIT reduces the purchaser's risk from supply failures
