Download the Latest L4M7 Dumps – 2023 L4M7 Exam Questions [Q20-Q39]

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Download the Latest L4M7 Dumps – 2023 L4M7 Exam Questions

Latest CIPS L4M7 Certification Practice Test Questions

CIPS L4M7 Exam Syllabus Topics:

Topic	Details
Topic 1	Explain the use of product coding in inventory operations Order tracking technologies
Topic 2	Ensure senior management support Use best estimates of values available Identify the contributing elements to end-of-life costs
Topic 3	Environmental standards for packaging Materials handling equipment
Topic 4	The use of automation in warehousing Palletisation and unit loads
Topic 5	Identify the principles, purpose and impact of stores and warehouse design Identify the direct and indirect costs of holding inventory
Topic 6	Differentiate between the different classifications of inventory Identify techniques associated with inventory control

NEW QUESTION 20
In just in time production system, when is an upstream production triggered?

When the inventory level reaches the reorder point

After the management team forecasts the future demands

When downstream operations summon the upstream production

When the production workers are idle

NEW QUESTION 21
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.

NEW QUESTION 22
Which of the following are most likely the benefits of using unit loads? Select TWO that apply.
Increase transport time of each item

Minimise space utilisation

Safer handling

Unit loads must be placed on pallets

Reduce handling cost of one unit

NEW QUESTION 23
A pharmaceutical firm offers a new drug called NC-01. After analysing the market, the firm realises that the demand is largely variable. But they still have to forecast the customer demand for the next production cycle. The new drug NC-01 is best described as which type of item?

Dependent demand

Indirect demand

Overhead items

Independent demand

NEW QUESTION 24
Can RFID tags work when they are attached to metal surfaces or embedded within metal products?

Yes, some technologies allow RFID tags to work on metal or within metal products

No, metal surface reflects the radio wave and thus interferes the operations of RFID tags

No, RFID tags only work with plastic products

Yes, all RFID tags can be used in every environmental conditions

NEW QUESTION 25
Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply

Multiple items tracking

Being able to work in harsh conditions without any supports

Identifying product defects

Being able to work in 1km range or above

Large information capacity

NEW QUESTION 26
Extra units that are held in inventory to reduce the risks of stock-out are called…?

Just-in-time

Reorder point

Safety stock

Demand variance

NEW QUESTION 27
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

NEW QUESTION 28
Which of the following best describes available inventory (also known as inventory position)?

The amount of inventory on hand

The amount of inventory on hand plus the amount of inventory on order

The amount of inventory on order only

The amount of inventory on hand in excess of expected demand

NEW QUESTION 29
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

NEW QUESTION 30
Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?

Pareto curve

Opitz system

Forrester effect

Seasonal demand

NEW QUESTION 31
Bulk loose coal that requires massive handling system should be stored in which area?

Chill hub

Stockyard

Heating warehouse

Store

NEW QUESTION 32
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

NEW QUESTION 33
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

NEW QUESTION 34
When accounting for the disposal of fixed assets, the gain or loss on disposal is equal to…?

The difference between resale price and the cost or valuation less accumulated depre-ciation up to the date of disposal

The difference between resale price and the cost of that asset

The difference between resale price and the cost or valuation plus depreciation up to the beginning of the year in which disposal took place

The difference between resale price and the cost of the asset less depreciation up to the beginning of the year in which disposal took place

NEW QUESTION 35
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

NEW QUESTION 36
Assuming that all other factors are constant except one, the net present value of a capital expendi-ture increases when…?

The initial cost of a project increases

The discounted rate increases

Net cash flow during a time period increases

Cash outflow during a time period increases

NEW QUESTION 37
Which of the following is the character that allows the computer to verify whether a product code is entered correctly?

3-digit prefix

Check digit

Radio frequency identification

Barcode

NEW QUESTION 38
Practice of unloading goods from inbound delivery vehicles and loading them directly onto out-bound vehicles is known as …?

Tracing and tracking

Automation

Cross-docking

Decommissioning

NEW QUESTION 39
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