L4M7 Exam Training Practice Tests (CIPS Whole Life Asset Management)]

Question 1

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. Reach trucks C. Roller conveyors D. Vacuum lifters

Correct Answer: C

Question 2

Which of the following is an acquisition cost under the concept of the total cost of ownership?

A. Installation and commissioning cost B. Down time and overhaul cost C. Consumables and energy cost D. Servicing and repair cost

Correct Answer: A

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Question 3

Practice of unloading goods from inbound delivery vehicles and loading them directly onto out-bound vehicles is known as ...?

A. Tracing and tracking B. Decommissioning C. Automation D. Cross-docking

Correct Answer: D

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Question 4

When designing the layout of a warehouse or stores area, one of the factors to consider is the width of the aisles between the racking. Which of the following is a main consideration when calculating the aisle width?

A. Dimensional length and depth of the items on a pallet B. Overall height of driver's cage of the forklift truck C. Dimensional depth and height of pallet racks D. Turning circle of the forklift truck and the size of the pallet being carried

Correct Answer: D

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Question 5

A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?

A. Yes, as the payments can be linked directly to a specific performance milestone of the contract B. No, as it commits the organisation to purchasing the equipment and the supplier to deliver it C. No, as it is an unfair contract term and places the supplier at a disadvantage in the contract D. Yes, as it means the contract warranties are easier to change

Correct Answer: A

Question 6

The managing director requires action to be taken to improve the organization's profitability and has asked for suggestions to enable this to be achieved. The procurement manager has said that a just-in-time (JIT) system should be introduced. Would such a system improve profitability?

A. No, because it would increase stock holding costs B. Yes, because it would reduce stock turn rates C. Yes, because it would reduce stock holding costs D. No, because it would increase buffer stock

Correct Answer: C

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Question 7

Which of the following best describes the term 'periodic review'?

A. Items are reviewed as part of an imprest system B. Items are reviewed when the price is at its lowest C. Items are reviewed and orders placed depending on requirements D. Items are reviewed when the Kanban is triggered

Correct Answer: A

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Question 8

Which of the following lists all components, ingredients, and materials required to produce the final product?

A. Master schedule B. Purchase order C. Bill of materials D. Engineering change notice

Correct Answer: C

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Question 9

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?

A. Inventory records B. Master production schedule C. Bill of materials D. Finance

Correct Answer: D

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Question 10

The width of aisles within a warehouse is determined by...?

A. The height of the building B. The length of storage racking C. The location of goods-in and goods-out doors D. Turning cycle of forklift and the size of pallets

Correct Answer: D

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Question 11

The only reason stocks become obsolete is because items have been held in stock for a very long time. Is this a valid statement?

A. No, because some items can become obsolete because of changes in consumer needs B. No, because stock held for a long time are called buffer stocks C. Yes, because all obsolete items result from significant overstocking D. Yes, because users assume that the items are no longer in stock

Correct Answer: A

Question 12

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?

A. Balance between proactive maintenance and reactive maintenance B. Outsource corrective maintenance but in-source preventative maintenance. C. Replace every machineries at breakdowns D. Only conduct preventative maintenance

Correct Answer: A

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Question 13

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.

A. Ease of objective forecasting on inventory level B. Volume of obsolescent stock C. Availability of product coding system D. Accessibility to roads and highways E. Availability of the building

Correct Answer: D,E

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Question 14

Which of the following is the Japanese word for 'billboard' or 'signboard'?

A. Kaizen B. Kanban C. Poka-Yoke D. Muda

Correct Answer: B

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CIPS Whole Life Asset Management - L4M7 Exam Practice Test