Whole-life Assets Management L4M7 Exam Questions

dumps2023-07-20T10:43:35+08:00

Whole-life assets management L4M7 exam refers to the process of effectively managing assets throughout their entire lifecycle. This includes planning, acquisition, operation, maintenance, and disposal. The goal is to optimize the value and performance of assets while minimizing costs and risks. We provide the latest CIPS Certification L4M7 exam questions, which are valuable for you to prepare and pass the test. Free CIPS Certification L4M7 exam questions are below.

Page 1 of 4

1. XYZ Ltd organises a meeting in order to decide on the safety stock level of a strategic material which is used in XYZ latest product - DMD. To do this, they must forecast the future demand for this new product. In the meeting, external consultants are invited to join with cross-functional team. Each person of the group anonymously replies to questionnaires and subsequently receives feedback in the form of a statistical representation of the "group response," after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. XYZ Ltd is using which forecasting method?

Objective forecasting technique

Delphi method

Holt-Winters seasonal method

Time series analysis

2. 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

3. 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

4. A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days.

What is the holding cost of this beer pallet?

$4.00

$4.50

$4.25

$3.75

5. 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

6. With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?

√(D*S/2H)

√(2D*S/H)

√(D*S*H)

√(D*S/3H)

7. To improve the security of a warehouse, alarm systems are commonly used.

Which of the following is an important part of these systems?

Sensors

Fencing

CCTV

Lighting

8. Which of the following best describes the term ‘periodic review’?

Items are reviewed and orders placed depending on requirements

Items are reviewed when the Kanban is triggered

Items are reviewed when the price is at its lowest

Items are reviewed as part of an imprest system

9. 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

10. The following are examples of scheduled maintenance except...

Oil changes and regular servicing

Overhauling of machine

Repair signage damage from a recent storm

Cleaning of tank

Page 2 of 4

11. L-shape layout

1 and 2 only

3 and 4 only

1 and 3 only

2 and 3 only

12. 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

13. The ABC approach involves classifying inventory items by unit cost, with expensive items classified as ‘A' items and low cost items classified as ‘C' items. Is this statement true?

Yes, 'A' items represent approximately 20% of total unit prices

Yes, 'C' items with the lowest unit prices are the tail spends

No, ABC analysis considers the usage of each inventory item

No, ABC analysis considers the supply risks associated with an inventory item

14. 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

15. A major investment bank is planning to purchase a complex banking system that will interface with multiple applications at varying times of the day. Before deploying the system, there are various levels of testing that must be performed through joint testing between the in-house team and off-shore testing consultants. The testing will be performed in a resource-constrained shared environment and managed by the on-shore development team.

The costs for testing are generally classified as...?

Insurance

Maintenance costs

Acquisition costs

Purchase prices

16. What is the stock turn for a store holding products to the value of £250,000 with annual sales of these products amounting to £1,000,000?

0.25

0.4

17. 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

18. The amount of inventory available at the start of an accounting period is known as...?

Buffer stock

Work-in-progress

Opening stock

Closing stock

19. To test the product durability

1 and 2 only

3 and 4 only

2 and 3 only

1 and 4 only

20. There are no duplicate product codes

2 and 4 only

3 and 4 only

1 and 3 only

1 and 2 only

Page 3 of 4

21. Which of the following statements is true?

All indirect supplies are independent demand items

Number of independent demand items may be derived from the forecast

Dependent demand items are not directly correlated with production rate

Car engine is an example of independent demand items in a car assembly plant

22. Which of the following correctly describes the triple bottom line?

Professional, Planet, Profit

People, Planet, Project

People, Product, Profit

People, Planet, Profit

23. Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.

Financial costs

Economic order quantity

ABC analysis

Takt time

Environmental issues

24. Finished goods

1, 3 and 4

1, 2 and 4

2, 3 and 4

25. 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

26. MRP software is applied to schedule which of the following?

Tax accounting

Production processes

Human resource management

Executive meetings

27. 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

28. Variability of lead time

1 and 3 only

1 and 2 only

2 and 4 only

3 and 4 only

29. 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

30. GAP Ltd is a growing retail business. It spends a lot of money on buying stock for sale. However, the procurement process is still largely manual. This manual process contains a lot of tasks that are repeated for each procurement event and time consuming. The company management team decides to adopt procure-to-pay (P2P) software in order to eliminate duplicate activities and improve process efficiencies.

Which type of cost is GAP targeting?

Holding costs

Acquisition costs

Disposal costs

Cost of stockouts

Page 4 of 4

31. A brewery sells its beer in aluminum cans. It recycles the cans by using contractors to collect and mold the used cans.

This is an example of...?

Closed-loop recycling

Carbon recycling

Open-loop recycling

Reuse

32. A hospital is purchasing a new software product that will advise nurses when to give medications to hospitalised patients. This is a mobile application that will be used on tablets carried by the nurses. The software is being developed and tested by a company that specialises in mobile medical applications. This software will interface with existing hospital software that orders the medications from the pharmacy.

Which acceptance test activity will be required to check whether the new software integrates well with current IT system?

Health and safety testing

Dry running

Stress testing

Compatibility testing

33. Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?

Purchasing price

Costs of stockouts

Acquisition costs

Holding costs

34. Which of the following refer to material used for filling the void left in the box but they have poor environmental profile?

Polystyrene chips

Cages

Metal racking

Polypropylene straps

35. 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

36. 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

37. 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

38. Bulk loose coal that requires massive handling system should be stored in which area?

Chill hub

Stockyard

Heating warehouse

Store

Whole-life Assets Management L4M7 Exam Questions

Whole-life Assets Management L4M7 Exam Questions

Share this post

Leave a Reply Cancel reply

Related Posts