NEW L4M7 TEST VOUCHER & FREE L4M7 UPDATES

New L4M7 Test Voucher & Free L4M7 Updates

New L4M7 Test Voucher & Free L4M7 Updates

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CIPS Whole Life Asset Management Sample Questions (Q32-Q37):

NEW QUESTION # 32
The time period between placing an order and its receipt in stock is known as what?

  • A. Over time
  • B. Carrying time
  • C. Shortage time
  • D. Lead time

Answer: D

Explanation:
Lead time is the duration from ordering to receipt and is a critical metric in inventory management. Reducing lead time enhances supply chain responsiveness and allows for more accurate planning. Whole-life asset management prioritizes reducing lead times to optimize inventory levels and meet demand effectively.


NEW QUESTION # 33
Which of the following would be an impact of low stock in the supply chain?
* Warehouse space would all be full with excess stock
* There may be delays and higher costs to fulfill supply
* Stock may not be available at times of high demand
* Lead times would reduce and purchase costs would fall

  • A. 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 1 and 3 only

Answer: A

Explanation:
Low stock levels can lead to:
* Delays and higher fulfillment costs: When stock is insufficient, emergency orders and expedited shipping may be necessary, increasing costs.
* Stockouts during high demand: Insufficient inventory can lead to missed sales opportunities, negatively impacting customer satisfaction.
Whole-life asset management seeks to balance inventory levels to avoid stockouts while minimizing holding costs.


NEW QUESTION # 34
What cost factors should be considered for the maintenance and repair of manufacturing equipment?
* Direct labor cost
* Cost of utilities during the use of the equipment
* Cost of the goods being sold
* Guarantee and warranty cost

  • A. 1 and 2 only
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 3 and 4 only

Answer: B

Explanation:
Maintenance and repair costs include:
* Direct labor: Expenses for personnel performing maintenance tasks.
* Warranty costs: Expenses associated with warranty obligations or repairs within the warranty period.
These costs are part of whole-life asset management, which aims to accurately budget for and manage ongoing equipment expenses.


NEW QUESTION # 35
MRP system is the most suitable IT system to manage which type of items?

  • A. Independent demand
  • B. Fast moving components
  • C. Dependent demand
  • D. Construction projects

Answer: C

Explanation:
Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.
Bill of materials (BOM) is an important component of MRP. BOM is also known as product struc-turer. This lists all the items that comprise each assembly and sub-assembly that make up the final product or end item.
Therefore, MRP is commonly used to manage dependent demand stock.


NEW QUESTION # 36
A construction organization requires specialist equipment for digging deep foundations. Which of the following circumstances would result in the hire of equipment rather than leasing it?

  • A. The results of a discounted cost analysis using comparative weekly payments for both hire and lease options
  • B. The subjective assessment of multiple factors for both hire and lease by the directors
  • C. The expected frequency of use, the storage available, and the lease cost of the equipment compared to hiring it
  • D. The finance available and the potential profits available on the eventual sale of the leased equipment compared to hire costs

Answer: C

Explanation:
Hiring is often preferred when:
* Frequency of use is low: If equipment is only needed occasionally, hiring is more economical.
* Storage is unavailable: Leased equipment needs storage, which incurs additional costs.
* Lease costs exceed hiring costs for limited use.
Whole-life asset management emphasizes cost-efficient solutions, and hiring equipment for limited use reduces unnecessary expenses compared to leasing or purchasing.


NEW QUESTION # 37
......

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