Whole-life Assets Management L4M7 Exam Questions

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?

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?

3. Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when...?

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?

5. Which of the following is the minimum aisle width for using standard counterbalanced forklifts?

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....?

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

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

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

9. What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?

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

11. L-shape layout

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.

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?

14. Which of the following costs does the EOQ minimise?

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...?

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?

17. Which of the following is essential to effective implementation of just-in-time?

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

19. To test the product durability

20. There are no duplicate product codes

21. Which of the following statements is true?

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

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

24. Finished goods

25. Do all types of warehouses require access to daylight to reduce the cost of electricity?

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

27. Which of the following is the correct statement about total ordering cost?

28. Variability of lead time

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?

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?

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...?

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?

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

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

35. In the periodic review system, the order quantity is the same for each order. Is this statement true?

36. An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?

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.

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

39. Overall inventory turnover

40. “A measure of the ability of an organisation to supply customers without delay” is the best defini-tion of which of the following:

41. Which of the following is NOT an improvement available in ERP II in compare with ERP?

42. Which of the following is a forecasting technique?

43. Which type of codes can a barcode laser scanner (linear scanner) read?

44. Autonomous maintenance

45. Which of the following is the Japanese word for ‘billboard’ or ‘signboard’?

46. Which of the following is the material handling equipment which uses the suction force to lift an item?

47. Which of the following best describes the relationship between a service level and safety stock?

A. A safety stock is not always required to achieve a required service level

B. A service level decreases in proportion to a decrease in safety stock

C. When safety stock is zero the service level always equals zero.

D. A service level increases in proportion to an increase in safety stock

48. P2P system

49. Which of the following best defines ‘exponential moving average’?

50. Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory belongs to which of the following?

51. Which costs in the following list are categorised as operation costs in the total cost of ownership model? Select TWO that apply.

52. Which of the following are typical characteristics of 2D barcodes? Select TWO that apply.

53. 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?

54. 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...?

55. Which of the following allow the operators to access higher levels in warehouse facility? Select TWO that apply:

56. Which of the following best describes category 'A' in ABC analysis in inventory management?

57. Which of the following is the most suitable container of fasteners (screws, nails, nuts and bolts,...)?

58. Which of the following statements holds true about inventory holding costs?

59. A logistics company has a 2-story warehouse in the suburban area. The goods receiving area and dispatch area are located on the ground floor only. There is a lift connecting the two floors. The daily operations of the warehouse are quite busy.

Which of the following would the best arrangement for this warehouse?

60. Which component of an RFID device is responsible for sending and receiving radio waves?

61. Profit decreases

62. A manufacturer is making a plan for strategic safety stock. To do so, they must analyse the probability of a stock out occurring and the cost impacts if it does.

Which of the following are typical costs the manufacturer may incur in 'out of stock' event? Select TWO that apply.

63. MRP system is the most suitable IT system to manage which type of items?

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

65. Which of the following are main objectives of warehouse operations? Select TWO that apply.

66. Which of the following is the core idea of Lean manufacturing?

67. Which of the following is often created by each business and commonly used for the purpose of inventory management?

68. Which of the following is the definition of work in progress inventory?

69. MRP software is a powerful tool for managing material requirements of manufacturing processes. To keep the software function well, an organisation must have appropriate input data.

Which of the following are the inputs of MRP software? Select THREE that apply.

70. A manager who is concerned about the environmental impact of packaging should do which of the following?

71. "Open stock plus purchases minus closing stock" is the formula of which of the following?

72. When deciding on the storage facilities and locations, an organisation needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities.

Is this statement true?

73. A restaurant needs to buy a new freezer. The owner applies total cost of ownership model to calculate the life-time cost of the freezer. This equipment has a price tag of $1,000, the supplier can offer free delivery if the restaurant pays off immediately. Estimated electricity consumption of the freezer is $200 in 5 years. The supplier ascertains that the freezer is very durable, buyer doesn't need to care about maintenance costs. However, if the restaurant needs better protection from breakdowns, the warranty is free for the first 12 months after the purchase. This warranty package can be extended once for another 24-month period with the cost of $75. After 5 years, the buyer will be able to resell this freezer for $250.

What would be the estimated total cost of ownership of this freezer if the restaurant owner buys the extended warranty package?

74. Environmental impact of excess packaging

75. One of the important outputs of an MRP system is the material requirement plan. This plan shows the net requirements for materials or components to make the final product.

Which of the following best describes the net material requirements?