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Pass the CIPS CIPS Level 4 Diploma in Procurement and Supply L4M7 Questions and answers with CertsForce

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Viewing questions 51-60 out of questions
Questions # 51:

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

Options:

A.

Vacuum lifter


B.

Sack truck


C.

Dolly


D.

Pallet stacker


Expert Solution
Questions # 52:

An organisation may incur additional costs in stockout events. Which of the following is an exam-ple of costs of inventory stockouts?

Options:

A.

The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease


B.

The lost contribution margin on sales forgone as a result of customer dissatisfaction due to unavailability of goods


C.

The costs of obsolescence and costs of insurance that change with the quantity of in-ventory held


D.

The return forgone by investing capital in inventory rather than elsewhere


Expert Solution
Questions # 53:

XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?

1. Disposal costs

2. Rentals

3. Operating costs

4. Vendor selection costs

Options:

A.

2, 3 and 4


B.

1, 2 and 3


C.

1, 3 and 4


D.

1, 2 and 4


Expert Solution
Questions # 54:

A company has realised that in the current business environment factors other

than profit are also important. The organisation is concerned about the social and

environmental impact of a business in pursuit of profits. Is minimising costs the

most appropriate course to follow?

Options:

A.

No, the best approach would be the triple bottom line


B.

Yes, as this guarantees the minimum impact on the environment


C.

Yes, because if costs are minimised profits will increase


D.

No, as maximising costs will mean that more care is taken of the environment


Expert Solution
Questions # 55:

When considering purchasing a piece of equipment internationally, there are a number of risk factors that need to be considered. Which of the following are risks associated with international purchasing?

1. Costs associated with tariff and non-tariff barriers to trade

2. Whether the equipment will operate In the language of the purchasing country

3. Costs associated with fluctuation on currency exchange rates

4. Costs associated with getting the equipment operating manual translated

Options:

A.

1 and 4 only


B.

3 and 4 only


C.

1 and 3 only


D.

2 and 5 only


Expert Solution
Questions # 56:

In just in time production system, when is an upstream production triggered?

Options:

A.

When the inventory level reaches the reorder point


B.

After the management team forecasts the future demands


C.

When downstream operations summon the upstream production


D.

When the production workers are idle


Expert Solution
Questions # 57:

A warehouse manager (WM) has been given the task of redesigning the interior layout of the organisation's main storage facility. There are numerous issues with how stock items can be moved around the facility. There are often delays, items are damaged, and there have been some health and safety incidents. The Issue

the WM is trying to resolve is known as ...

Options:

A.

flow


B.

flexibilty


C.

capacity


D.

volume


Expert Solution
Questions # 58:

Nuclear Energy Group Limited (NEG) has a number of investment options currently under appraisal. As these are all long-term investments (more than 30 years), NEG is adopting a total cost of ownership approach. It has gathered data on all associated costs over the life of the investment. Which of the following will be regarded as end-of-life costs?

Options:

A.

Insurance costs


B.

Servicing costs


C.

Installation costs


D.

Decommissioning costs


Expert Solution
Questions # 59:

PRP Toys has to manage annual seasonal demand that requires double the

warehouse space that it has available in order to fulfil the orders. It requires this

extra space for only a four week period each year. Which of the following

solutions is the most effective way for PBP to manage this problem?

Options:

A.

Reduce stock volumes held and undertake variety reduction


B.

Rent additional space in a third-party warehouse facility


C.

Relocate to a new warehouse capable of storing the required volumes


D.

Replace warehouse racking and use stacking pallets throughout


Expert Solution
Questions # 60:

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

Options:

A.

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


B.

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


C.

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


D.

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


Expert Solution
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