Free Sep-2023 UPDATED CIPS L4M7 Certification Exam Dumps is Online [Q40-Q64]

Posted On September 29, 2023

Free Sep-2023 UPDATED CIPS L4M7 Certification Exam Dumps is Online

CIPS Exam 2023 L4M7 Dumps Updated Questions

The CIPS L4M7 exam is offered by the Chartered Institute of Procurement and Supply (CIPS), a global professional body that sets the standards for best practice in procurement and supply chain management. The CIPS L4M7 Exam is designed to test candidates’ knowledge and understanding of whole life asset management principles and practices, and their ability to apply these in real-world scenarios.

NO.40 Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory belongs to which of the following?

Acquisition costs

Purchase price

Holding costs

Costs of stockouts

NO.41 Which of the following statements about radio frequency identification (RFID) is NOT true?

RFID is a powerful technology for tracking the movement of goods throughout the supply chain

RFID tags contain a microchip in which data of an item are saved

RFID systems can be complied with GS1 standards

RFID systems transmit radio signals over extreme long distances.

NO.42 Do all types of warehouses require access to daylight to reduce the cost of electricity?

No, because only ventilation can help to reduce the humidity in the warehouse

No, because some types of stock are sensitive to sunlight

Yes, because sunlight sterilises inventories in damp conditions

Yes, because organisation’s need for artificial lighting and heating will reduce

NO.43 XYZ Inc opens a tender to purchase new forklift trucks for their new established warehouse. In the final round, there are two suppliers remain who offer two different bids. Supplier A’s bid has high initial investment. After calculating the net present value, the NPV in year five is positive. On the other hand, supplier B’s bid has low purchase price, with the NPV in year five is negative. If the NPV is the sole selection criterion, XYZ Inc should select the bid which has…?

Positive NPV

The lowest NPV

Zero NPV

Negative NPV

NO.44 Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method: First, the customers make orders, then it will decide which components to be pur-chased according to the bill of materials. These components are known as which of the following?

Indirect items

Capital goods

Dependent demand items

Independent forecast items

NO.45 Which of the following is the minimum aisle width for using standard counterbalanced forklifts?

4.9 ft – 5.2 ft

5.6 ft – 5.9 ft

6.9 ft – 7.2 ft

10.5 ft – 13.1 ft

NO.46 Which of the following is essential to effective implementation of just-in-time?

Regular machine changeovers

Larger warehouse for larger amount of inventory

No need for smoothing production

Strong links between the suppliers and the buying organisation

NO.47 Among different types of costs associated with inventory, the costs of obtaining purchase approvals are…?

Purchasing price

Costs of stockouts

Acquisition costs

Holding costs

NO.48 Which of the following can replace pallets as bases for unit loads but they require push pull acces-sories to retrieve or discharge unit load?

Shrink wraps

Post pallets

Skids

Slip sheets

NO.49 Which of the following is often created by each business and commonly used for the purpose of inventory management?

SKU

ISBN

Harmonised system

FDA product code

NO.50 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….?

√(D*S/2H)

√(2D*S/H)

√(D*S*H)

√(D*S/3H)

NO.51 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

NO.52 Which of the following purchases are most likely to have low acquisition costs? Select TWO that apply.

Purchase of ERP system

Purchase of standard catalogued products

Straight re-buy from a current supplier

Spot purchase of a technically complexed machinery

Procurement of construction projects

NO.53 When using ABC analysis to classify inventory, which factors must be considered?
1. Demand uncertainty of each item
2. Cumulative percentage of items
3. Cumulative percentage usage value of items
4. Overall inventory turnover

2 and 4 only

1 and 4 only

2 and 3 only

1 and 3 only

NO.54 Which of the following is the most suitable container of fasteners (screws, nails, nuts and bolts,…)?

Bar rack

Pallet

Tote box

Stock cage

NO.55 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

NO.56 When purchasing a capital asset, an organisation should analyse the costs and benefits that the asset may bring. Which of the following factors are considered in cost-benefit analysis? Select TWO that apply.

The cost of the asset

Current liabilities in the balance sheet

Shareholders’ equity

The cumulative cash flows generated by the asset

Dividends paid

A cost-benefit analysis is a process businesses use to analyze decisions (such as capital investment). The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action.
A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.
The costs involved in a CBA might include the following:
– Direct costs would be direct labor involved in manufacturing, inventory, raw materials, manufacturing expenses.
– Indirect costs might include electricity, overhead costs from management, rent, utilities.
– Intangible costs of a decision, such as the impact on customers, employees, or delivery times.
– Opportunity costs such as alternative investments, or buying a plant versus building one.
– Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following:
– Revenue and sales increases from increased production or new product.
– Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction due to enhanced product offerings or faster delivery.
– Competitive advantage or market share gained as a result of the decision.
An analyst or project manager should apply a monetary measurement to all of the items on the cost-benefit list, taking special care not to underestimate costs or overestimate benefits. A conservative approach with a conscious effort to avoid any subjective tendencies when calculating estimates is best suited when assigning a value to both costs and benefits for a cost-benefit analysis.
Finally, the results of the aggregate costs and benefits should be compared quantitatively to deter-mine if the benefits outweigh the costs. If so, then the rational decision is to go forward with the project. If not, the business should review the project to see if it can make adjustments to either increase benefits or decrease costs to make the project viable. Otherwise, the company should likely avoid the project.
Reference:
– Cost-Benefit Analysis (Investopedia)
– CIPS study guide page 175
LO 3, AC 3.2

NO.57 Which of the following is the Japanese word for ‘billboard’ or ‘signboard’?

Muda

Kaizen

Poka-Yoke

Kanban

NO.58 PPC Refinery (UK) must close down an out-of-date refinery which has very poor environmental performance. The refinery is very sophisticated with many technically complicated machineries, lubricants, coolants and other chemical substances. Decommissioning the refinery is highly risky and hazardous. To manage the decommissioning process well, PPC project team must know these machineries and substances in details. Which document can provide the technical details on the refinery?

Original specifications

Non-disclosure agreement

Code of Conduct

Corporate social responsibility policy

NO.59 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

NO.60 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

NO.61 The minimal total cost is always achieved when there is only one warehouse. Is this statement true?

No, fewer warehouse may lead to increasing transport costs

Yes, because the operation cost for warehouse reaches minimal level

Yes, because warehouse overheads are fully utilised

No, more warehouses will reduce the cost of storage

NO.62 A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock. Safety stock can be used to accommodate which of the following?
1. Variability of stock turn
2. Variability of holding costs
3. Variability of demand
4. Variability of lead time

1 and 3 only

1 and 2 only

2 and 4 only

3 and 4 only

NO.63 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.

Availability of the building

Ease of objective forecasting on inventory level

Volume of obsolescent stock

Accessibility to roads and highways

Availability of product coding system

NO.64 Which of the following allow the operators to access higher levels in warehouse facility? Select TWO that apply:

Carousel

Grab

Order picker

Scissor platform

Stacker crane

CIPS L4M7 Certification Exam is an ideal choice for professionals who are looking to enhance their career prospects in the asset management sector. CIPS Whole Life Asset Management certification can provide professionals with the necessary skills and knowledge to effectively manage assets across a range of industries, including manufacturing, construction, and infrastructure. Additionally, the certification demonstrates a commitment to professional development and can help professionals stand out in a competitive job market. Overall, the CIPS L4M7 Certification Exam is an excellent choice for professionals who want to broaden their knowledge and expertise in asset management, and who are looking to take their career to the next level.

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