CIPS Whole Life Asset Management L4M7 Exam Dumps

Jonnie Karnath2023-08-02T07:55:06+00:00

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1. Which of the following is the material handling equipment which uses the suction force to lift an item?

Vacuum lifter

Sack truck

Dolly

Pallet stacker

2. Which of the following is the Japanese word for ‘billboard’ or ‘signboard’?

Muda

Kaizen

Poka-Yoke

Kanban

3. In the periodic review system, the order quantity is the same for each order. Is this statement true?

No, the next order quantity must be larger than the previous one

No, the inventory position at each review point differs from each other

Yes, in periodic review system items are reviewed when the Kanban is triggered

Yes, the order quantity should be equal to economic order quantity

4. Do all types of warehouses require access to daylight to reduce the cost of electricity?

No, because only ventilation can help to reduce the humidity in the warehouse

No, because some types of stock are sensitive to sunlight

Yes, because sunlight sterilises inventories in damp conditions

Yes, because organisation's need for artificial lighting and heating will reduce

5. A manufacturer is making a plan for strategic safety stock. To do so, they must analyse the probability of a stock out occurring and the cost impacts if it does.

Which of the following are typical costs the manufacturer may incur in 'out of stock' event? Select TWO that apply.

Extra costs for urgent transportation

Cost of equipment downtime

Costs for qualifying suppliers

Costs of handling inventory Costs of approving the requisition

6. Which of the following is often created by each business and commonly used for the purpose of inventory management?

SKU

ISBN

Harmonised system

FDA product code

7. A logistics company has a 2-story warehouse in the suburban area. The goods receiving area and dispatch area are located on the ground floor only. There is a lift connecting the two floors. The daily operations of the warehouse are quite busy.

Which of the following would the best arrangement for this warehouse?

Small items in tote boxes will be stored on the ground floor with forklifts and other equipment, high-usage palletised items will be stored on the first floor

Medium- to low-usage palletised items will be stored on the ground floor, high-usage items will be stored on the first floor where the building administrative office is located

Forklifts and other warehouse equipment will park on the ground floor, all inventories will be stored on the first floor

Pallets, roller cages and other bulky items will be stored on the ground floor, smaller items in plastic tote boxes will be stored on the first floor

8. Extra units that are held in inventory to reduce the risks of stock-out are called...?

Just-in-time

Reorder point

Safety stock

Demand variance

9. Raw materials

1 and 3 only

2 and 4 only

1 and 2 only

3 and 4 only

10. Which one of the following statements is true about radio frequency identification (RFID)?

RFID tags require laser scanning.

A passive RFID tag does not use an antenna

An active RFID tag does not require a power source

Normally passive RFID tags store ID numbers

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11. Which of the following is essential to effective implementation of just-in-time?

Regular machine changeovers

Larger warehouse for larger amount of inventory

No need for smoothing production

Strong links between the suppliers and the buying organisation

12. Manufacturing resources planning (MRP II) was developed from material requirement planning (MRP).

Which of the following is the additional input that is available in MRP II but does not ap-pear in MRP?

Finance

Bill of materials

Master production schedule

Inventory records

13. Overall inventory turnover

2 and 4 only

1 and 4 only

2 and 3 only

1 and 3 only

14. Which of the following is the minimum aisle width for using standard counterbalanced forklifts?

4.9 ft - 5.2 ft

5.6 ft - 5.9 ft

6.9 ft - 7.2 ft

10.5 ft - 13.1 ft

15. ANTA Logistics is looking for a place to build a new, integrated cold chain facility, “Chill Hub”, to its customers.

Which of the following need to be considered when selecting the location of the new facility? Select TWO that apply.

Availability of the building

Ease of objective forecasting on inventory level

Volume of obsolescent stock

Accessibility to roads and highways

Availability of product coding system

16. Which of the following is the definition of work in progress inventory?

Inventory that has finished the production process

Inventory introduced into production but not completed as of the stocktake date

Inventory not yet introduced into the production process

Obsolete inventory

17. Which costs in the following list are categorised as operation costs in the total cost of ownership model? Select TWO that apply.

Decommissioning costs

Costs of any person who operates the equipment

Installation and configuration costs

Delivery costs

Costs of consumables

18. A restaurant needs to buy a new freezer. The owner applies total cost of ownership model to calculate the life-time cost of the freezer. This equipment has a price tag of $1,000, the supplier can offer free delivery if the restaurant pays off immediately. Estimated electricity consumption of the freezer is $200 in 5 years. The supplier ascertains that the freezer is very durable, buyer doesn't need to care about maintenance costs. However, if the restaurant needs better protection from breakdowns, the warranty is free for the first 12 months after the purchase. This warranty package can be extended once for another 24-month period with the cost of $75. After 5 years, the buyer will be able to resell this freezer for $250.

What would be the estimated total cost of ownership of this freezer if the restaurant owner buys the extended warranty package?

$1,025

$1,200

$1,275

$1,525

19. Which of the following is the cylindrical container that is suitable for liquids or loose material

Tote box

Drum

Industrial container

Storage bag

20. When accounting for the disposal of fixed assets, the gain or loss on disposal is equal to...?

The difference between resale price and the cost or valuation less accumulated depreciation up to the date of disposal

The difference between resale price and the cost of that asset

The difference between resale price and the cost or valuation plus depreciation up to the beginning of the year in which disposal took place

The difference between resale price and the cost of the asset less depreciation up to the beginning of the year in which disposal took place

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21. What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?

The gross requirement doesn't take taxes into account, whereas the net requirement includes the tax considerations

The gross MRP includes consideration of available inventory, whereas the net MRP does not

The net MRP includes the amount of inventory on hand, whereas the gross MRP does not

The gross MRP is mostly paper-based, but the net MRP must be computerised

22. Which of the following is the correct statement about total ordering cost?

Rise as the average stock level rises

Equal the number of orders placed times the cost of placing an order

Rise as the order quantity rises

Fall with the per period usage rate

23. In ABC analysis, category C is also known as...?

Indirect spend

Long tail spend

Direct spend

Capital expense

24. Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method: First, the customers make orders, then it will decide which components to be purchased according to the bill of materials.

These components are known as which of the following?

Indirect items

Capital goods

Dependent demand items

Independent forecast items

25. Sidel Corp is a major food processor. It invested heavily on manufacturing facilities and processing machineries. Sidel's expenses on maintenance are exceptionally high.

To minimise the total cost of maintenance, what should Sidel Corp do?

Replace every machineries at breakdowns

Only conduct preventative maintenance

Outsource corrective maintenance but in-source preventative maintenance.

Balance between proactive maintenance and reactive maintenance

26. Autonomous maintenance

1 and 3 only

2 and 4 only

1 and 2 only

2 and 3 only

27. Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when...?

The initial cost of a project increases

The discounted rate increases

Net cash flow during a time period increases

Cash outflow during a time period increases

28. Which of the following costs does the EOQ minimise?

Total cost of safety stock

Total cost of ordering inventory

Total cost of annual inventory cost

Total cost of carrying stock

29. P2P system

2 and 3 only

1 and 3 only

2 and 4 only

1 and 4 only

30. The minimal total cost is always achieved when there is only one warehouse. Is this statement true?

No, fewer warehouse may lead to increasing transport costs

Yes, because the operation cost for warehouse reaches minimal level

Yes, because warehouse overheads are fully utilised

No, more warehouses will reduce the cost of storage

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31. Which of the following are subjective forecasting techniques? Select TWO that apply.

Delphi method

Test marketing

Cycle counting

Pareto principle Weighted moving average

32. "Open stock plus purchases minus closing stock" is the formula of which of the following?

Inventory

Revenue

Cost of goods sold

Liability

33. Which of the following is a main objective of just-in-time?

Better demand forecasting

Leveraging economic order quantity

Higher safety stock

Waste reduction

34. An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?

No, the organisation may recover the value of the assets by reselling it

Yes, the organisation incurs high maintenance cost during the disposal processes

Yes, some assets require enormous decommissioning costs

No, disposal of assets always bring positive cash flow to the organisation

35. There are no duplicate product codes

2 and 4 only

3 and 4 only

1 and 3 only

1 and 2 only

36. Which of the following is a forecasting technique?

LIFO

Moving average

Time-weighted series

ABC analysis

37. XYZ Ltd has been adopting MRP system for years. The system helps the company improve efficiency greatly and generates huge cost-savings. However, MRP system is only limited to production process

management and XYZ management team would like to have better insights into re-sources required across the organisation as a whole.

Which software system would help XYZ management team achieve the above objective?

MRP II

MPS

ERP

P2P

38. Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

Eliminating dead stock or inventory

Temporary warehousing

Installing double-deep pallet racking

Consignment stocking

Adopting carousel-type storage

39. Lean principle focuses on eliminating eight types of waste.

Waste in Lean manufacturing is defined as...?

Non value-adding steps in a process

Part of activity when operator is idle

Part of any activity which is inevitable

Rejection of material because of quality related problems

40. Which of the following statements holds true about inventory holding costs?

They decline as the cost of the inventory item rises

They always exceed total ordering costs

They depend upon the opportunity cost of tying up funds and the average value of the stock holding

They are independent of the average stock level

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41. An electricity company charges its customers monthly fee for access and a usage fee for consumption of electricity.

Which pricing structure is the company using?

Fixed pricing

Multi-part pricing

Dynamic pricing

Freemium Pricing

42. Resevoir Inc runs several oil refineries across the country. These refineries require heavy investment, particularly in maintenance, repair and operating (MRO) inventory. But the inventory turnover rate of these MRO items are low, while some items have expired date, which increases the risks of obsolescence.

Which of the following methods can address the issues of these MRO items?

Forrester effect

Just in case

Larger safety stock

Vendor-owned stock

43. A supplier delivers large quantities of inventory to its customer's store, but only charges for the goods as and when they are used. This can be described as...?

Consignment stock

Components inventory

Multi-stage inventory

Multi-echelon stock

44. Vendor selection costs

2, 3 and 4

1, 2 and 3

1, 3 and 4

1, 2 and 4

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