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Unique Top-selling L4M7 Exams – New 2023 CIPS Pratice Exam

Level 4 Diploma in Procurement and Supply Dumps L4M7 Exam for Full Questions – Exam Study Guide

CIPS L4M7 Exam Syllabus Topics:

Topic	Details
Topic 1	Contrast the impact of the use of different warehousing equipment Understand methods for the storage and movement of inventory
Topic 2	Systems for product coding Bar coding The use of RFID technologies
Topic 3	Dependent demand and independent demand itemsof stock ABC classifications of stock that may apply
Topic 4	Identify the principles, purpose and impact of stores and warehouse design Identify the direct and indirect costs of holding inventory
Topic 5	Hidden costs – global sourcing, risks associated with extended supply chain Cross functional support – ensure access to data
Topic 6	Environmental standards for packaging Materials handling equipment
Topic 7	Explain the use of product coding in inventory operations Order tracking technologies

NO.12 XYZ Ltd organises a meeting in order to decide on the safety stock level of a strategic material which is used in XYZ latest product – DMD. To do this, they must forecast the future demand for this new product. In the meeting, external consultants are invited to join with cross-functional team. Each person of the group anonymously replies to questionnaires and subsequently receives feedback in the form of a statistical representation of the “group response,” after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. XYZ Ltd is using which forecasting method?

Objective forecasting technique

Delphi method

Holt-Winters seasonal method

Time series analysis

NO.13 Which of the following is NOT an improvement available in ERP II in compare with ERP?

ERP II systems are closed and silo-working

ERP II enables the organisation to collaborate with trading partners across the supply chain

ERP II crosses all sectors and segments of business, including service, government and asset-based industries

ERP II offers better integration with other proprietary software

NO.14 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

NO.15 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.16 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?

Reverse logistics

Floor-ready merchandise

Vendor managed inventory

Economic order quantity

NO.17 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.18 Which of the following code systems is commonly used by governments as a basis for their Cus-toms tariffs and for the collection of international trade statistics?

The International Mobile Equipment Identity

The Harmonized Commodity Description and Coding System

Global Trade Item Number

Global Location Number

NO.19 An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?

No, the organisation may recover the value of the assets by reselling it

Yes, the organisation incurs high maintenance cost during the disposal processes

Yes, some assets require enormous decommissioning costs

No, disposal of assets always bring positive cash flow to the organisation

NO.20 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.21 For which of the following is the ‘delphi method’ used?

Controlling products

Valuing stock

Classifying products

Forecasting demand

NO.22 Manufacturing resources planning (MRP II) was developed from material requirement planning (MRP). Which of the following is the additional input that is available in MRP II but does not ap-pear in MRP?

Finance

Bill of materials

Master production schedule

Inventory records

NO.23 To improve the security of a warehouse, alarm systems are commonly used. Which of the following is an important part of these systems?

Sensors

Fencing

CCTV

Lighting

The most basic alarm consists of one or more sensors to detect intruders, and an alerting device to indicate the intrusion. However, a typical premises security alarm employs the following compo-nents:
– Premises control unit (PCU), Alarm Control Panel (ACP), or simply panel: The “brain” of the system, it reads sensor inputs, tracks arm/disarm status, and signals intrusions. In modern system, this is typically one or more computer circuit boards inside a metal enclosure, along with a power supply.
– Sensors: Devices which detect intrusions. Sensors may be placed at the perimeter of the protected area, within it, or both. Sensors can detect intruders by a variety of methods, such as monitoring doors and windows for opening, or by monitoring unoccupied interiors for motions, sound, vibration, or other disturbances.
– Alerting devices: These indicate an alarm condition. Most commonly, these are bells, sirens, and/or flashing lights. Alerting devices serve the dual purposes of warning occupants of intrusion, and potentially scaring off burglars. These devices may also be used to warn occupants of a fire or smoke condition.
– Keypads: Small devices, typically wall-mounted, which function as the human-machine interface to the system. In addition to buttons, keypads typically feature indicator lights, a small multi-character display, or both.etc.
– Interconnections between components. This may consist of direct wiring to the control unit, or wireless links with local power supplies.
In addition to the system itself, security alarms are often coupled with a monitoring service. In the event of an alarm, the premises control unit contacts a central monitoring station. Operators at the station see the signal and take appropriate action, such as contacting property owners, notifying police, or dispatching private security forces. Such signals may be transmitted via dedicated alarm circuits, telephone lines, or the internet.
Reference:
Security alarm – Wikipedia
LO 1, AC 1.1

NO.24 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.25 GAP Ltd is a growing retail business. It spends a lot of money on buying stock for sale. However, the procurement process is still largely manual. This manual process contains a lot of tasks that are repeated for each procurement event and time consuming. The company management team decides to adopt procure-to-pay (P2P) software in order to eliminate duplicate activities and improve process efficiencies. Which type of cost is GAP targeting?

Holding costs

Acquisition costs

Disposal costs

Cost of stockouts

NO.26 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

NO.27 Objective forecasting techniques must be based on which of the following?
1. Opinions
2. Figures
3. Facts
4. Jugdement

3 and 4 only

1 and 2 only

2 and 3 only

1 and 4 only

NO.28 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.29 The amount of inventory available at the start of an accounting period is known as…?

Buffer stock

Work-in-progress

Opening stock

Closing stock

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Unique Top-selling L4M7 Exams – New 2023 CIPS Pratice Exam [Q12-Q29]

CIPS L4M7 Exam Syllabus Topics: