QUIZ HIGH-QUALITY CIPS - L4M7 - CIPS WHOLE LIFE ASSET MANAGEMENT LATEST LEARNING MATERIAL

Quiz High-quality CIPS - L4M7 - CIPS Whole Life Asset Management Latest Learning Material

Quiz High-quality CIPS - L4M7 - CIPS Whole Life Asset Management Latest Learning Material

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Tags: L4M7 Latest Learning Material, L4M7 Reliable Dump, L4M7 New Practice Questions, L4M7 Updated Test Cram, L4M7 Exam Torrent

The CIPS Whole Life Asset Management (L4M7) prep material is available in three versions. L4M7 Practice exams and PDF questions are available at FreePdfDump so that users can meet their training needs and pass the CIPS Whole Life Asset Management (L4M7) exam on the first try. The philosophy of FreePdfDump behind offering CIPS Whole Life Asset Management (L4M7) prep material in three formats is helping students meet their unique learning needs.

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CIPS Whole Life Asset Management Sample Questions (Q142-Q147):

NEW QUESTION # 142
An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright?
* Capital allowances may be set against tax, and grants may be available
* There is no initial investment which would tie up the organisation's working capital
* It would protect against technological obsolescence as equipment can be replaced as required
* The total cost may be higher than purchasing the equipment outright

  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 2 and 5 only
  • D. 3 and 4 only

Answer: A


NEW QUESTION # 143
Which of the following are advantages of a multi-story warehouse compared to a single-story warehouse?
* Heavier, frequently moved items will always be stored on the upper floor of a multi-story warehouse
* Order tracking technology will be more effective and efficient in a multi-story warehouse
* There are more options for the storage of inventory by volume, weight, and frequency of movement in a multi-story warehouse
* The cost of land is likely to be less for a multi-story warehouse compared to a single-story warehouse for a similar product volume

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

Answer: D

Explanation:
Multi-story warehouses provide:
* Flexible storage options for various inventory types, based on volume, weight, and movement frequency.
* Cost savings on land: As vertical space is utilized, less land is needed for the same storage volume, potentially reducing property expenses.
Whole-life asset management considers these factors to maximize storage efficiency while managing real estate costs.


NEW QUESTION # 144
A manufacturer is making a plan for strategic safety stock. To do so, they must analyse the proba-bility 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.

  • A. Extra costs for urgent transportation
  • B. Costs of approving the requisition
  • C. Cost of equipment downtime
  • D. Costs for qualifying suppliers
  • E. Costs of handling inventory

Answer: A,C

Explanation:
The costs of stockouts - the costs of being out of inventory - include:
- Loss of production output
- Costs of idle time and of fixed overheads spread over a reduced level of output
- Costs of any action taken to deal with the stockout, such as buying from another stockist at an enhanced price, switching production, obtaining substitute materials
- Loss of customer goodwill due to the inability to supply or late delivery.
(Procurement and Supply Chain management - 9th Edition, K. Lysons and B. Farrington, 2016) LO 2, AC 2.2


NEW QUESTION # 145
ATT is a small retailer that specializes in selling 'seasonal goods' which change throughout the year. Some products need regular reordering and some only require a start-of-season single order. Sales volumes are unpredictable and variable. Ordering is from multiple suppliers with variable lead times (between two weeks and two months). ATT has no computerized stock management system but can monitor product sales through the barcode-equipped point-of-sale (POS) system.
Which of the following would be appropriate to support ATT for its stock monitoring and reorder requirements?

  • A. Undertake an MRP system with a dependent demand database to allow for variances in delivery and availability
  • B. Undertake variable periodic reviews of products by classifying each product by lead times and sales volume
  • C. Introduce a continuous stocktaking process to check all stock once per month against sales records for each product
  • D. Introduce a just-in-time system using sales information with visual checks of stock to create orders

Answer: B

Explanation:
Variable periodic reviews enable ATT to manage seasonal goods effectively by adjusting ordering based on:
* Lead times and sales volume: Classifying products by these factors helps in planning, aligning with varying supplier delivery times and unpredictable sales demand.
Implementing a JIT or MRP system would require more sophisticated management tools, making option C the most feasible. This method aligns with whole-life asset management by supporting efficient inventory planning while minimizing stockouts or overstock situations.


NEW QUESTION # 146
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?

  • A. 0
  • B. 0.25
  • C. 0.4
  • D. 1

Answer: D

Explanation:
Calculating Inventory Turnover (Stock Turn)
As with a typical turnover ratio, inventory turnover details how much inventory is sold over a period. To calculate the inventory turnover ratio, cost of goods (COGS) is divided by the average inventory for the same period.1 Cost of Goods Sold ÷ Average Inventory or Sales ÷ Inventory In this exercise, the stock turn equal to sales divided by inventory, or 1,000,000:250,000 = 4.


NEW QUESTION # 147
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