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1.
MTC Logistics operates in a dense urban warehouse with limited floor space and vertical racking. What type of equipment is most appropriate for this environment?
2.
What is the primary benefit of using significant coding for inventory items?
3.
A company is looking to forecast demand for a new product in a highly uncertain market. Which method is most suitable?
4.
Which TWO are considered acquisition costs?
1. Transport from supplier to warehouse
2. Cost of inspecting received goods
3. Rent of storage facility
4. Maintenance of racking system
5.
XYZ Corp operates in a volatile market and holds buffer stock to avoid frequent shortages. What type of stock is this?
6.
Which of the following are typical causes of stock obsolescence?
1. Low stock turnover
2.Technological changes
3. Supplier delivery reliability
4. Just-in-time processes
7.
A buyer at LMN Ltd has just acquired high-value medical machinery that will be used for 5 years. Which funding method is most suitable?
8.
Which warehouse layout supports separation of receiving and dispatch functions to minimise congestion?
9.
What is a key disadvantage of leasing equipment?
10.
During stock reviews, which technique is used to prioritise high-value items for tighter control?
11.
Staff at OTR Manufacturing report rising energy bills and inefficient manual retrieval processes. Management decides to invest in automated carousels. What benefit is this expected to achieve?
12.
A global logistics firm uses RFID systems in place of barcode scanners. What advantage does RFID offer over barcoding?
13.
Why is it important to conduct an environmental risk assessment before decommissioning old equipment?
14.
What are TWO typical holding costs in inventory management?
1. Cost of warehouse lighting
2. Purchase invoice processing
3. Insurance premiums on stored stock
4. Expediting delivery fees
15.
Which of the following strategies is used when inventory is delivered to a warehouse and shipped immediately with no storage?
16.
Which TWO technologies are typically used in modern warehouse automation?
1.Voice-directed picking
2. Pen-and-paper instructions
3. Automated guided vehicles (AGVs)
4. Manual forklifts
17.
In what situation would hiring be preferred over leasing?
18.
An organisation has decided to outsource inventory storage to a third-party logistics provider. What is a key benefit of this decision?
19.
Which TWO of the following can lead to redundant stock?
1. Over-ordering of non-essential items
2. Increase in warehouse temperature
3. Product changes in design
4. Use of economic order quantity
20.
What is a key difference between FIFO and LIFO?
21.
DPT Ltd receives stock from suppliers and holds it for a customer until it is requested. The stock still belongs to the supplier. What is this arrangement called?
22.
A company wishes to cut storage space without increasing risk of stockouts. What approach should it implement?
23.
Which method of inventory review checks stock levels at regular time intervals, regardless of usage rates?
24.
Which of the following describes economic order quantity (EOQ)?
25.
Which TWO of the following would be treated as revenue expenditures?
1. Staff overtime for stocktaking
2. Purchase of a new racking system
3. Monthly cleaning contract
4. Installation of automation system
