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CIPS LEVEL 4 > L4 M7 Prac Questions > Flashcards

L4 M7 Prac Questions Flashcards

1
Q

Q1. For a manufacturing company that exports most of its output, the location of its finished goods warehouse should be influenced by:
A. The costs of its materials handling equipment.
B. Whether the building is to be leased or purchased.
C. The closeness to transport facilities.
D. The closeness to customers.

A

C. The closeness to transport facilities.

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2
Q

Q2. Which of the following would be classified as consumables in a manufacturer of electronic goods?
A. Switches.
B. Circuit boards.
C. Power cable.
D. Solvents.

A

D. Solvents.

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3
Q

Q3. An objective of warehouse management should be to:
A. Improve the routing of deliveries.
B. Reduce procurement costs.
C. Increase stockholding levels.
D. Improve the flow of materials.

A

D. Improve the flow of materials.

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4
Q

Q4. Which approach to stock control allows the quantity ordered to be fixed but the time between orders to vary?
A. Economic Order Quantity
B. Cycle review.
C. Periodic Review.
D. Fixed Quantity

A

D. Fixed Quantity

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5
Q

Q5. MRP Systems are used to manage what type of demand?
A. Independent.
B. Economic.
C. Dependent.
D. Derived.

A

C. Dependent.

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6
Q

Q6. Which of the following types of items should be in the most accessible areas in a warehouse, for efficient layout design?
A. Fast- moving items.
B. Smaller items.
C. Expensive items.
D. Hazardous items.

A

A. Fast- moving items.

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7
Q

Q7. Which of the following is a decision tool that allows you to calculate the ideal quantity of inventory to order for a specific product?
A. MOQ.
B. TQM.
C. EOQ.
D. EPC.

A

C. EOQ.

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8
Q

Q8. Which of the following could be seen as a disadvantage of JIT?
A. Reduced scrap.
B. Inability to gain volume discounts.
C. Reduced safety stocks.
D. Reduced capital requirements.

A

B. Inability to gain volume discounts.

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9
Q

Q9. Which of the following could be seen as a cause of redundant stock as opposed to obsolete stock?
A. Poor forecasting.
B. Technological change.
C. Cultural change.
D. Legislation.

A

A. Poor forecasting.

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10
Q

Q10. Which of the following is an acquisition cost of inventory?
A. Administration costs.
B. Storage costs.
C. Damage costs.
D. Deterioration costs.

A

A. Administration costs.

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11
Q

Q11. In designing the layout of a warehouse, an aim should be to minimise:
A. The use of conveyors.
B. The size of the order preparation area.
C. The volumes of items handled.
D. The aisle space.

A

D. The aisle space.

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12
Q

Q12. The use of the volume capacity in a warehouse can be improved by:
A. Conveyors.
B. A mezzanine floor.
C. The use of ABC analysis.
D. Fixed location storage.

A

B. A mezzanine floor.

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13
Q

Q13. Safety Stock is also known as?
A. Buffer stock.
B. Excess stock.
C. Additional stock.
D. Seasonal stock.

A

A. Buffer stock.

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14
Q

Q14. The approach to stock coding in which each new code follows on from the last is known as what type of system?
A. Relevant.
B. Significant.
C. Barcoding.
D. Sequential.

A

D. Sequential.

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15
Q

Q15. What happens to storage costs as the number of warehouses an organisation has increases?
A. It reduces.
B. It stays the same.
C. It increases.
D. It depends on warehouse size.

A

C. It increases.

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16
Q

Q16. Aluminium and steel used in car manufacturing are classified as which type of stock?
A. Scrap products.
B. Raw materials.
C. Sub components.
D. Work in progress

A

B. Raw materials.

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17
Q

Q17. Which approach to stock control allows the quantity ordered to be varied but the time between orders is fixed?
A. Re- order point.
B. Cycle review.
C. Periodic Review.
D. Perpetual order system.

A

C. Periodic Review.

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18
Q

Q18. Which of these is an advantage of using a Random position layout system rather than a Fixed position layout in a warehouse?
A. Space in the warehouse is used very efficiently.
B. Products are always in the same location.
C. Staff training is easier.
D. Manual stock location systems can be used.

A

A. Space in the warehouse is used very efficiently.

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19
Q

Q19. Having conducted an ABC analysis on the inventory within a manufacturing organisation which best describes the approach you should take to managing the ‘C’ category items?
A. Minimal safety stocks.
B. Only stock in small batches.
C. Order in large batch sizes.
D. Only stock if you have an order.

A

C. Order in large batch sizes.

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20
Q

Q20. Within a warehouse ,which is the suitable storage solution for long items such as steel pipes?
A. Adjustable pallet racking.
B. Fixed position racking.
C. Drive in racking.
D. Cantilever racking.

A

D. Cantilever racking.

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21
Q

Q21. Within a warehouse which is the suitable storage solution for items that are on pallets but each pallet is of differing heights?
A. Adjustable pallet racking.
B. Fixed position racking.
C. Drive in racking.
D. Cantilever racking.

A

A. Adjustable pallet racking.

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22
Q

Q22. Which type of storage allows a First in First Out approach to stock rotation?
A. Drive in storage.
B. Live storage.
C. Fixed storage.
D. Bulk storage.

A

B. Live storage.

23
Q

Q23. Which of the following needs to be considered when selecting the location of a store or stockyard?
A. Staff comfort.
B. Visual appearance.
C. Use of space.
D. Environmental issues

A

D. Environmental issues

24
Q

Q24. Which of the following categories of materials handling equipment does a ‘pallet truck’ belong to?
A. Gravity conveyor.
B. Picking robot.
C. Warehouse Trolley.
D. Forklift Truck .

A

C. Warehouse Trolley.

25
Q

Q25. What happens to transport costs as the number of warehouses an organisation has increases?
A. It reduces.
B. It increases.
C. It stays the same.
D. It depends on warehouse size

A

A. It reduces.

26
Q

Q26. Which of the following products are most suitable for storage in stockyards?
A. Copper-pipes.
B. Cement.
C. Bricks.
D. Ironmongery.

A

C. Bricks.

27
Q

Q27. Which of these is an advantage of using a fixed position layout system rather than a random position layout in a warehouse?
A. New arrivals are always allocated to empty locations.
B. Staff training is easier.
C. Space in the warehouse is used very efficiently.
D. It helps increase the storage density.

A

B. Staff training is easier.

28
Q

Q28. Which of the following is the most efficient flow within a warehouse?
A. T- Shaped flow.
B. Cross flow.
C. L Shaped flow.
D. Straight line flow.

A

D. Straight line flow.

29
Q

Q29. A system that integrates the stock control system with other organisation- wide functions in one computer system is known as?
A. Materials Scheduling Planning.
B. Enterprise Requirements Planning.
C. Materials Requirements Planning.
D. Enterprise Resource Planning.

A

D. Enterprise Resource Planning.

30
Q

Q30. A system that covers planning for plant, wider financial implications and human resources as well as stock is known as?
A. MRP.
B. ERP.
C. MRPII.
D. JIT.

A

B. ERP.

31
Q

Q31. Stock which is held to cover for disruptions in the supply chain such as late deliveries is known as?
A. Emergency stock.
B. Safety stock.
C. Consignment stock.
D. Consumable stock.

A

B. Safety stock.

32
Q

Q32. Which of the following is a holding cost of inventory?
A. Administration costs.
B. Paperwork costs.
C. Transaction costs.
D. Obsolescence costs.

A

D. Obsolescence costs.

33
Q

Q33. Which type of storage allows the goods to move via rollers using gravity?
A. Live storage.
B. Drive in storage.
C. Fixed storage.
D. Bulk storage.

A

A. Live storage.

34
Q

Q34. Having conducted an ABC analysis on the inventory within your organisation which best describes to approach you should take to managing the ‘A’ category items?
A. Buy in bulk.
B. Stock to inventory.
C. Only stock in economic batches.
D. Have responsive agile suppliers

A

D. Have responsive agile suppliers

35
Q

Q35. Which of these is seen as a disadvantage of using Re-order point (fixed order quantity)system of stock control?
A. High Inventory levels.
B. Frequent stockouts.
C. Automatic reordering of stock.
D. Low inventory levels.

A

A. High Inventory levels.

36
Q

Q36. What is the main advantage of RFID over the traditional barcode system for stock control?
A. It is cheaper than Barcodes.
B. It can store more information than a barcode.
C. It is used more extensively than barcodes.
D. It is a universal standard.

A

B. It can store more information than a barcode.

37
Q

Q37. One of the benefits of using forklift trucks for materials handling is that they:
A. Do not have any safety risks.
B. Do not need driver accreditation.
C. Carry standard and unit loads.
D. Need wide aisles for turning.

A

C. Carry standard and unit loads.

38
Q

Q38. Which of the following terms refers to a number of similar items assembled into one batch for storage and transporting?
A. Stock requisition.
B. Standard delivery.
C. Unit load.
D. Palletisation.

A

C. Unit load.

39
Q

Q39. A common problem associated with coding systems is?
A. Power cuts.
B. Not widely used.
C. Input errors.
D. Time to develop

A

C. Input errors.

40
Q

Q40. A Buyer has a requirement for some goods but is uncertain of the volume required over a period of time. In this case which of the following pricing approaches allows the supplier to review the prices in this situation
A. Retrospective volume discounts.
B. Multi- Part Pricing.
C. Volume based pricing.
D. Payment in advance.

A

A. Retrospective volume discounts.

41
Q

Q41. Which of the following are elements of Acquisition costs of capital items – Select 3 that apply
A. Maintenance costs.
B. Replacement parts.
C. Acceptance testing.
D. Site Preparation.
E. Shipping costs.
F. Running costs.

A

C. Acceptance testing.
D. Site Preparation.
E. Shipping costs.

42
Q

Q42. Which of the following approaches should an organisation adopt in order to maximise overall equipment effectiveness?
A. Repair Maintenance.
B. Total Productive Maintenance.
C. Run to Breakdown Maintenance.
D. Preventive Maintenance.

A

B. Total Productive Maintenance.

43
Q

Q46. Which is a benefit of effective unitisation of loads?
A. Moving minimum quantities per journey.
B. Maximising density.
C. Less security.
D. Reduced pilferage.

A

B. Maximising density.

44
Q

Q44. Which organisation has issued international standards on packaging and the environment?
A. UN Environment Agency.
B. International Organisation for Standardisation.
C. US Environmental Protection Agency.
D. World Trade Organisation.

A

B. International Organisation for Standardisation.

45
Q

Q45. The process of moving goods back from the point of sale, through the supply chain is know as:
A. Revered Logistics.
B. Remedial Logistics.
C. Reverse Logistics.
D. Roll on Roll off Logistics.

A

C. Reverse Logistics.

46
Q

Q46. Periodic review systems are used to manage what type of demand?
A. Economic.
B. Independent.
C. Dependent.
D. Derived.

A

B. Independent.

47
Q

Q47. Within a warehouse which is the most suitable storage solution for low use small items such as washers and gaskets?
A. Adjustable pallet racking.
B. Storage Bins and shelving.
C. Drive in racking.
D. Live storage.

A

B. Storage Bins and shelving.

48
Q

Q48. When importing capital items from overseas organisations need to consider a range of costs including transport and exchange rates. One such cost could be taxation charged by governments on imports. These are also known as what?
A. Import Licences.
B. Import Tariffs.
C. Import Quotas.
D. Import Restrictions

A

B. Import Tariffs.

49
Q

Q49. In the concept of the Circular Economy which of the following is an example of the Open Loop Cycle?
A. Finding new uses for old products.
B. Finding a different use for old products.
C. Finding both new and similar uses for elements of the product.
D. Finding environmentally friendly ways of disposing of the product.

A

B. Finding a different use for old products.

50
Q

Q50.Why would an organisation apply Net Present Value (NPV) to a capital investment?
A. To calculate if it will make a profit.
B. To provide information on lifecycle costs.
C. To calculate the lifetime of the asset.
D. To provide a comparison between assets.

A

D. To provide a comparison between assets.

51
Q

Q51. An organisation has developed a process to make new batteries using materials from waste batteries what type of approach to recycling is this?
A. Mixed Loop.
B. Reverse Loop.
C. Open Loop.
D. Closed Loop.

A

D. Closed Loop.

52
Q

Q52. Consideration of disposal methods which minimise the potential risk and harm to society could be considered an example of which 2 of the following:
A. People.
B. Profit.
C. Planet.
D. Publicity.

A

A. People.
C. Planet.

53
Q

Q53. A new start up bakery that has limited access to capital is considering how to acquire the fixed capital assets it requires for the business. The procurement manager has suggested leasing the equipment rather than buying it outright. Was this a correct suggestion.
A. No – Because the organisation needs to own assets to increase its value.
B. No – Because buying the assets is cheaper than leasing.
C. Yes – Because the leasing repayments come out of trading income.
D. Yes- Because the organisation requirements might change in the short term.

A

C. Yes – Because the leasing repayments come out of trading income.

54
Q

Q54. An organisation has a requirement for a delivery van to be used over the period of three years. The owner is considering hiring a van rather than leasing is this the right thing to do?
A. No – Because hiring will be limit you to the choice of vehicle that the hire company possesses.
B. No – Because hiring is more expensive over the long term than leasing
C. Yes- Because hiring will give the organisation flexibility in the short and long term.
D. Yes – Because hiring is always cheaper over the long term than leasing.

A

B. No – Because hiring is more expensive over the long term than leasing

CIPS LEVEL 4 (3 decks)

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