L4M7 Practice Exam Questions and Answers

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

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

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...?

Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?

The width of aisles within a warehouse is determined by...?

MRP software is applied to schedule which of the following?

XYZ Ltd is a major distributor of electrical equipment protection products in the United States. XYZ found that there was a lack of communication between the company and its key supplier, leading to the supplier trying to predict distributor needs and distributor attempting to estimate lead times. Essentially, both the supplier and the distributor have different sets of information, spending time and money trying to predict what the other will do. To deal with this problem, XYZ Ltd decides to implement new inventory management method in which the supplier manage the replenishment of items for sale. Both parties are obliged to share information on variations in demand and stock levels for goods used for or sale. Which inventory management method is XYZ Ltd implementing?

What are the contents of master production schedule in MRP system?

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...?

Which of the following best describes the relationship between a service level and safety stock?

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

The amount of inventory available at the start of an accounting period is known as...?

Which of the following are subjective forecasting techniques? Select TWO that apply.

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?

A group of items which are stacked together for more convenient movement is called...?

Which of the following best describe the function of MRP?

Which of the following purchases are most likely to have low acquisition costs? Select TWO that apply.

Which of the following is often created by each business and commonly used for the purpose of inventory management?

Sidel Corp is a major food processor. It invested heavily on manufacturing facilities and processing machineries. Sidel's expenses on maintenance are exceptionally high. To minimise the total cost of maintenance, what should Sidel Corp do?

Which type of codes can a barcode laser scanner (linear scanner) read?