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1.
ABC Warehousing Ltd has been handling heavy inventory using manual pallet trucks. The manager now proposes switching to reach trucks due to narrow gangways and higher racking. What is the most suitable reason for this change?
2.
XYZ Industries wants to track high-value components across multiple warehouse locations. Each component has a unique number scannable by a reader.What system best supports this requirement?
3.
Which of the following are examples of acquisition costs in inventory management?
1.Cost of receiving goods
2.Rent of warehouse space
3.Invoice processing cost
4.Cost of conducting quality checks
4.
A facility with limited storage space and high daily order volume has been advised to implement a cross-docking system.What benefit does this provide?
5.
A procurement officer is comparing leasing vs. hiring a concrete mixer. The equipment will only be needed for 3 weeks on a one-off project.What approach is most appropriate?
6.
Which TWO of the following are benefits of using significant coding for inventory?
1. Enables aggregation of similar items
2. Reduces inventory duplication
3.Improves energy efficiency in storage
4. Prevents theft
7.
PQR Ltd is planning the disposal of obsolete chemical storage tanks. What is the first step it should undertake?
8.
Which of the following inventory items would be classified as obsolete stock?
9.
Which TWO of the following are types of warehouse layouts?
1. U-shaped
2. Spiral flow
3. Through flow
4. Triangular flow
10.
The inventory controller of LMN Ltd is reviewing holding costs. Which of the following best represents this type of cost?
11.
An organisation uses economic order quantity (EOQ) for restocking. What is the main advantage of EOQ?
12.
Which TWO of the following are typical costs associated with stockouts?
1. Lost sales revenue
2. Additional warehousing fees
3. Customer dissatisfaction
4. Reduced freight costs
13.
A buyer is planning to lease expensive construction equipment but is unsure of long-term use. What risk does this pose?
14.
Which coding structure typically uses letters and numbers to represent product characteristics such as size or colour?
15.
Which TWO of the following systems support warehouse automation?
1. AGVs (Automated Guided Vehicles)
2. Manual pick sheets
3. WMS (Warehouse Management Systems)
4. Handwritten logs
16.
Why would a company choose to outsource warehousing?
17.
Which of the following is a disadvantage of narrow aisle warehouse layouts?
18.
XYZ Ltd experiences excess holding of spare parts due to poor forecasting. What method should it consider to improve demand prediction?
19.
Which TWO of the following would be considered capital costs?
1. Purchase of automated storage system
2. Temporary labour for stocktaking
3. Installation of security system
4. Monthly utility bills
20.
Which TWO of the following are benefits of holding safety stock?
1. Reduces risk of stockouts
2. Minimises total inventory cost
3. Increases product expiry rates
4. Supports demand fluctuations
21.
Which method helps assign inventory storage based on high-frequency pick items being located near dispatch?
22.
An asset that has been used beyond its optimal life cycle and costs more to maintain than replace is known as:
23.
What is the purpose of an environmental impact assessment before asset disposal?
24.
Which forecasting method involves expert input over mathematical trends?
25.
Which inventory management system integrates procurement and production schedules?
