CIPS Whole Life Asset Management (L4M7) Free Practice Test

Question 1

Which of the following factors influence stock-holding policy for slow-moving items?
* Item cost
* Surplus cost
* Shortage cost
* Lead time

A. 1, 2 and 3 only

B. 1, 3 and 4 only

C. 1, 2 and 4 only

D. 2, 3 and 4 only

Correct Answer: A

Question 2

Which of the following is commonly used in larger warehouses to transfer larger volumes of stock in box, tote or pallet forms along a fixed path?

A. Stacker cranes

B. Roller conveyors

C. Reach trucks

D. Vacuum lifters

Correct Answer: B

Question 3

Which of the following is an advantage of hiring compared to buying asset equipment?

A. Hiring is the most suitable option for high-usage equipment

B. Responsibility for the repair of the equipment normally lies with the owner

C. Hiring eliminates the need for storage space for the equipment

D. Hiring increases the requirement for finance credit for the equipment

Correct Answer: B

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Question 4

Jones Warehouse Services Limited has been using a manual handling system to move items throughout its warehouse. This setup is slow, uses more labor resources than automated systems, and recently, several errors and inaccuracies were uncovered in an audit. The company wants to introduce a system that minimizes human errors, lowers workplace risks, and reduces labor costs. Which of the following is a fast and efficient mechanical handling system for transporting a variety of different materials within a warehouse?

A. Dollies

B. Reach truck

C. Conveyor

D. Trolley

Correct Answer: C

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Question 5

Which of the following are recognised as disadvantages of ERP systems? Select TWO that apply.

A. Required intensive employee training

B. High initial investment

C. Lower factory efficiencies

D. Excluded inventory records

E. Only applied to manufacturing

Correct Answer: A,B

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Question 6

A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

A. Holding more cycle stock

B. Expanding replenishment lead time

C. Decreasing safety stock

D. Increasing safety stock

Correct Answer: C

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Question 7

Zemora Clothing Inc. receives high-priced garments with devices hidden inside the lining. This is done to avoid possible fraudulent removal of the garments from the shop. These tags are activated when the items arrive at the stores. When a garment Is moved by a customer from a display area, security employees receive an initial alert. An alarm rings if the customer passes through the doors of the shop without paying for the items. Which of the following order tracking technology is used by this company?

A. Electronic data interchange

B. Bar coding system

C. Radio frequency identification

D. Electronic resource planning

Correct Answer: C

Question 8

Which of the following materials handling equipment can be used in the warehouse? Select THREE that apply.

A. Bar coding

B. Pallet dollies

C. Electronic data exchange

D. Forklift

E. Conveyor system

Correct Answer: B,D,E

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CIPS Whole Life Asset Management (L4M7) Free Practice Test