Pass L4M7 Exam Latest Practice Questions Updated on Apr 21, 2023 [Q26-Q49]

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Pass L4M7 Exam Latest Practice Questions Updated on Apr 21, 2023

CIPS L4M7 Study Guide Archives

CIPS L4M7 Exam Syllabus Topics:

Topic	Details
Topic 1	The use of automation in warehousing Palletisation and unit loads
Topic 2	Contrast the impact of the use of different warehousing equipment Understand methods for the storage and movement of inventory
Topic 3	Explain the use of product coding in inventory operations Order tracking technologies
Topic 4	Differentiate between the different classifications of inventory Identify techniques associated with inventory control
Topic 5	Understand the key elements of effective inventory control Factors that influence stores and warehouse layout
Topic 6	Dependent demand and independent demand itemsof stock ABC classifications of stock that may apply
Topic 7	Hidden costs – global sourcing, risks associated with extended supply chain Cross functional support – ensure access to data
Topic 8	Opening stock, work in progress, safety stock and finished goods Obsolescent and redundant stock
Topic 9	Systems for product coding Bar coding The use of RFID technologies

NEW QUESTION 26
Which of the following is an assumption of economic-order-quantity model?

The quantity ordered can vary at each reorder point

Demand, ordering costs, and carrying costs are uncertain

No inventory stockouts occur

The purchasing cost per unit is affected by the order quantity

NEW QUESTION 27
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

NEW QUESTION 28
Which of the following are warehouse layouts that allow the cross aisle to meet picking aisle at angles different from 90 degrees?
1. ‘Fan’ shaped layout
2. Herringbone-shaped layout
3. U-shape layout
4. L-shape layout

1 and 2 only

3 and 4 only

1 and 3 only

2 and 3 only

NEW QUESTION 29
Multiple approval levels for a small purchase request is an example of which type of waste?

Over-processing

Not using talent

Over-production

Inventory

NEW QUESTION 30
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

NEW QUESTION 31
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

NEW QUESTION 32
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

NEW QUESTION 33
Which of the following allow the operators to access higher levels in warehouse facility? Select TWO that apply:

Carousel

Grab

Order picker

Scissor platform

Stacker crane

NEW QUESTION 34
A logistics company has a 2-story warehouse in the suburban are
a. 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

NEW QUESTION 35
XYZ Ltd is a major distributor of electrical equipment protection products in the United States. XYZ found that there was a lack of communication between the company and its key supplier, leading to the supplier trying to predict distributor needs and distributor attempting to estimate lead times. Essentially, both the supplier and the distributor have different sets of information, spending time and money trying to predict what the other will do. To deal with this problem, XYZ Ltd decides to implement new inventory management method in which the supplier manage the replenishment of items for sale. Both parties are obliged to share information on variations in demand and stock levels for goods used for or sale. Which inventory management method is XYZ Ltd implementing?

Reverse logistics

Floor-ready merchandise

Vendor managed inventory

Economic order quantity

NEW QUESTION 36
When purchasing a capital asset, an organisation should analyse the costs and benefits that the asset may bring. Which of the following factors are considered in cost-benefit analysis? Select TWO that apply.

The cost of the asset

Current liabilities in the balance sheet

Shareholders’ equity

The cumulative cash flows generated by the asset

Dividends paid

A cost-benefit analysis is a process businesses use to analyze decisions (such as capital investment). The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action.
A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.
The costs involved in a CBA might include the following:
– Direct costs would be direct labor involved in manufacturing, inventory, raw materials, manufacturing expenses.
– Indirect costs might include electricity, overhead costs from management, rent, utilities.
– Intangible costs of a decision, such as the impact on customers, employees, or delivery times.
– Opportunity costs such as alternative investments, or buying a plant versus building one.
– Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following:
– Revenue and sales increases from increased production or new product.
– Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction due to enhanced product offerings or faster delivery.
– Competitive advantage or market share gained as a result of the decision.
An analyst or project manager should apply a monetary measurement to all of the items on the cost-benefit list, taking special care not to underestimate costs or overestimate benefits. A conservative approach with a conscious effort to avoid any subjective tendencies when calculating estimates is best suited when assigning a value to both costs and benefits for a cost-benefit analysis.
Finally, the results of the aggregate costs and benefits should be compared quantitatively to deter-mine if the benefits outweigh the costs. If so, then the rational decision is to go forward with the project. If not, the business should review the project to see if it can make adjustments to either increase benefits or decrease costs to make the project viable. Otherwise, the company should likely avoid the project.
Reference:
– Cost-Benefit Analysis (Investopedia)
– CIPS study guide page 175
LO 3, AC 3.2

NEW QUESTION 37
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

NEW QUESTION 38
Which of the following code systems is commonly used by governments as a basis for their Cus-toms tariffs and for the collection of international trade statistics?

The International Mobile Equipment Identity

The Harmonized Commodity Description and Coding System

Global Trade Item Number

Global Location Number

NEW QUESTION 39
Which of the following is a forecasting technique?

LIFO

Moving average

Time-weighted series

ABC analysis

NEW QUESTION 40
Which among the following are the tools for reducing acquisition costs in purchasing?
1. Procurement card
2. Automated Storage & Retrieval System
3. Porter’s value chain
4. P2P system

2 and 3 only

1 and 3 only

2 and 4 only

1 and 4 only

NEW QUESTION 41
Bulk loose coal that requires massive handling system should be stored in which area?

Chill hub

Stockyard

Heating warehouse

Store

NEW QUESTION 42
A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock. Safety stock can be used to accommodate which of the following?
1. Variability of stock turn
2. Variability of holding costs
3. Variability of demand
4. Variability of lead time

1 and 3 only

1 and 2 only

2 and 4 only

3 and 4 only

NEW QUESTION 43
Which of the following is the Japanese word for ‘billboard’ or ‘signboard’?

Muda

Kaizen

Poka-Yoke

Kanban

NEW QUESTION 44
Which of the following are most likely the benefits of using unit loads? Select TWO that apply.
Increase transport time of each item

Minimise space utilisation

Safer handling

Unit loads must be placed on pallets

Reduce handling cost of one unit

NEW QUESTION 45
A pharmaceutical firm offers a new drug called NC-01. After analysing the market, the firm realises that the demand is largely variable. But they still have to forecast the customer demand for the next production cycle. The new drug NC-01 is best described as which type of item?

Dependent demand

Indirect demand

Overhead items

Independent demand

NEW QUESTION 46
XYZ Inc opens a tender to purchase new forklift trucks for their new established warehouse. In the final round, there are two suppliers remain who offer two different bids. Supplier A’s bid has high initial investment. After calculating the net present value, the NPV in year five is positive. On the other hand, supplier B’s bid has low purchase price, with the NPV in year five is negative. If the NPV is the sole selection criterion, XYZ Inc should select the bid which has…?

Positive NPV

The lowest NPV

Zero NPV

Negative NPV

NEW QUESTION 47
ASI Ltd is known for its commitment to sustainability. ASI builds railroad ties and pilings using recycled plastic bottles and industrial waste instead of standard materials such as wood, steel, and cement. This practice helps the company save 15% in compare with traditional material purchases. Which pillar of sustainability would include the practice of ASI Ltd?

People and Planet

Profit and Expense

Planet and Profit

Profit and People

NEW QUESTION 48
Which is the best definition of reorder point?

The point at which stock will fall to zero minus lead-time

The point when one unit of stock remains in stock

The point when stock reaches zero

The level inventory at which an order must be made

NEW QUESTION 49
Which of the following is a main objective of just-in-time?

Better demand forecasting

Leveraging economic order quantity

Higher safety stock

Waste reduction

L4M7 Questions Prepare with Learning Information: https://www.dumpstorrent.com/L4M7-exam-dumps-torrent.html

Pass L4M7 Exam Latest Practice Questions Updated on Apr 21, 2023 [Q26-Q49]

CIPS L4M7 Exam Syllabus Topics:

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