Get Feb-2023 Dumps to Pass your L4M7 Exam with 100% Real Questions and Answers [Q67-Q83]

QUESTION 67
In the Appendix A of a long-term supply contract of Bulk Drug Substance, both parties agree that “The reference price for Bulk Product at the specification, per gram, shall be US$10. The unit price for Bulk Product for a specific Purchase Order shall be computed by multiplying the above- specified reference price by two corrective factors, namely inflation correction factor and exchange rate correction factor”. This pricing appendix is an example of…?

Discounted pricing

Fixed pricing

Volume-based pricing

Adjustable pricing

QUESTION 68
Which of the following is a forecasting technique?

LIFO

Moving average

Time-weighted series

ABC analysis

QUESTION 69
Which of the following statements holds true about inventory holding costs?

They decline as the cost of the inventory item rises

They always exceed total ordering costs

They depend upon the opportunity cost of tying up funds and the average value of the stock holding

They are independent of the average stock level

QUESTION 70
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

QUESTION 71
Resevoir Inc runs several oil refineries across the country. These refineries require heavy invest-ment, particularly in maintenance, repair and operating (MRO) inventory. But the inventory turno-ver rate of these MRO items are low, while some items have expired date, which increases the risks of obsolescence. Which of the following methods can address the issues of these MRO items?

Forrester effect

Just in case

Larger safety stock

Vendor-owned stock

QUESTION 72
U-shape flow layout can utilise handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?

No, because aisles between racks in U-shape flow are too small for any handling equipment

Yes, because U-shape layout allows S-line routing more efficient

No, because cross-docking is impossible in U-shape flow warehouse

Yes, because this layout places receiving docks and despatch docks close to one another

QUESTION 73
A company has obsolete inventories and it must write off these inventories. How does writing off inventories impact on the company’s financial statements?
1. Stock increases
2. Stock decreases
3. Profit increases
4. Profit decreases

2 and 4 only

1 and 3 only

2 and 3 only

1 and 4 only

QUESTION 74
Which of the following is NOT an improvement available in ERP II in compare with ERP?

ERP II systems are closed and silo-working

ERP II enables the organisation to collaborate with trading partners across the supply chain

ERP II crosses all sectors and segments of business, including service, government and asset-based industries

ERP II offers better integration with other proprietary software

QUESTION 75
The optimum balance in the standard ISO 18602:2013 (Packaging and the environment – Optimi-zation of the packaging system) considers which of the following factors?
1. Environmental impact of losses due to lack of packaging
2. The process for packaging design, including material selection
3. Procedures and requirements for packaging that are suitable for organic recycling
4. Environmental impact of excess packaging

2 and 3 only

2 and 4 only

1 and 3 only

1 and 4 only

QUESTION 76
Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply

Multiple items tracking

Being able to work in harsh conditions without any supports

Identifying product defects

Being able to work in 1km range or above

Large information capacity

QUESTION 77
XYZ Ltd is a large retailer who offers a range of products with different margins. The warehouse manager suggests that different product groups should have different level of safety stock. The appropriate level of safety stock is typically determined by…?

Expected stockout cost multiplies with product margin

Choosing the level of safety stock that assures a given service level

Taking the square root of the economic order quantity

Carrying sufficient safety stock so as to eliminate all stockouts

QUESTION 78
Which of the following statements is true of just-in-time (JIT) purchasing?

In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales

Only disadvantage of JIT purchasing is the higher level carrying and inspection costs

JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs

In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs

QUESTION 79
Decommissioning, removal and disposal of assets may have impact on the environment. An organisation should have policies and procedures in place to enhance its environmental performance. Which standard family provides the guidance on environmental policies and procedures?

ISO 22000 family

ISO 9000 family

ISO 14000 family

ISO 27000 family

The ISO 14000 family of standards are developed by ISO Technical Committee ISO/TC 207 and its various subcommittees. For a full list of published standards in the series see their standards catalogue. ISO 14001 provides requirements with guidance for use that relate to environmental systems. Other standards in the family focus on specific approaches such as audits, communications, labelling and life cycle analysis, as well as environmental challenges such as climate change.
ISO 27000 family of standards concerns information technology, with the goal of improving security and protecting company assets. Started in 2005, the two most popular standards are ISO 27001:2013 and 27002:2013. 27001 is management-based system, whereas 27002 is a technical document, focused on the individual and putting a code of conduct in place. Organizations can choose either standard; ISO 27001 has over 22,000 certifications worldwide. It is a broad standard, and for this reason the certification can be customized to fit the needs of the organization, and is not mandatory.
ISO 22000 sets out the requirements for a food safety management system and can be certified to it. It maps out what an organization needs to do to demonstrate its ability to control food safety hazards in order to ensure that food is safe. It can be used by any organization regardless of its size or position in the food chain.
ISO 9001 is a family of quality management standards, there are fourteen in total. Of these, ISO 9001:2015 is the only one that can be certified to. It was first published in 1987, and has since been updated about every 7 years. The standard details how to put a Quality Management System (QMS) in place to better prepare your organization to produce quality products and services. It is customer focused, and places an emphasis on continuous improvement and top management processes that extended throughout the organization.
Reference:
– ISO website
– Top 10 Most Popular ISO Standards
– CIPS study guide page 193
LO 3, AC 3.3

QUESTION 80
Which of the following are the different types of inventory that a manufacturing company usually has?
1. Work in progress
2. Economic order quantity
3. Raw materials
4. Finished goods

1, 3 and 4

1, 2 and 4

2, 3 and 4

QUESTION 81
“Open stock plus purchases minus closing stock” is the formula of which of the following?

Inventory

Revenue

Cost of goods sold

Liability

QUESTION 82
A supplier delivers large quantities of inventory to its customer’s store, but only charges for the goods as and when they are used. This can be described as…?

Consignment stock

Components inventory

Multi-stage inventory

Multi-echelon stock

QUESTION 83
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