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Question # 4

Which of the following are warehouse layouts that allow the cross aisle to meet picking aisle at angles different from 90 degrees?

1. 'Fan' shaped layout

2. Herringbone-shaped layout

3. U-shape layout

4. L-shape layout

A.

1 and 2 only

B.

3 and 4 only

C.

1 and 3 only

D.

2 and 3 only

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Question # 5

What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?

A.

The gross requirement doesn't take taxes into account, whereas the net requirement includes the tax considerations

B.

The gross MRP includes consideration of available inventory, whereas the net MRP does not

C.

The net MRP includes the amount of inventory on hand, whereas the gross MRP does not

D.

The gross MRP is mostly paper-based, but the net MRP must be computerised

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Question # 6

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.

1 and 3 only

B.

1 and 2 only

C.

2 and 4 only

D.

3 and 4 only

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Question # 7

A brewery sells its beer in aluminum cans. It recycles the cans by using contractors to collect and mold the used cans. This is an example of...?

A.

Closed-loop recycling

B.

Carbon recycling

C.

Open-loop recycling

D.

Reuse

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Question # 8

Which of the following refer to material used for filling the void left in the box but they have poor environmental profile?

A.

Polystyrene chips

B.

Cages

C.

Metal racking

D.

Polypropylene straps

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Question # 9

Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

A.

Eliminating dead stock or inventory

B.

Temporary warehousing

C.

Installing double-deep pallet racking

D.

Consignment stocking

E.

Adopting carousel-type storage

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Question # 10

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

A.

Pareto curve

B.

Opitz system

C.

Forrester effect

D.

Seasonal demand

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Question # 11

Which of the following best describes category 'A' in ABC analysis in inventory management?

A.

Items that represent approximately 15% of total value

B.

Items with low uncertainty

C.

Items with high values

D.

Items with high uncertainty

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Question # 12

MRP system is the most suitable IT system to manage which type of items?

A.

Dependent demand

B.

Construction projects

C.

Independent demand

D.

Fast moving components

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Question # 13

Lean principle focuses on eliminating eight types of waste. Waste in Lean manufacturing is defined as...?

A.

Non value-adding steps in a process

B.

Part of activity when operator is idle

C.

Part of any activity which is inevitable

D.

Rejection of material because of quality related problems

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Question # 14

XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?

1. Disposal costs

2. Rentals

3. Operating costs

4. Vendor selection costs

A.

2, 3 and 4

B.

1, 2 and 3

C.

1, 3 and 4

D.

1, 2 and 4

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Question # 15

"Open stock plus purchases minus closing stock" is the formula of which of the following?

A.

Inventory

B.

Revenue

C.

Cost of goods sold

D.

Liability

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Question # 16

Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory belongs to which of the following?

A.

Acquisition costs

B.

Purchase price

C.

Holding costs

D.

Costs of stockouts

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Question # 17

The purchase-order lead time is the...?

A.

Period between receiving a customer order and producing the products

B.

Time needed to correct errors in the defective products

C.

Period between placing an order and its delivery

D.

Period between receiving a customer order and delivering the items

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Question # 18

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

A.

Purchasing price

B.

Costs of stockouts

C.

Acquisition costs

D.

Holding costs

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Question # 19

The ABC approach involves classifying inventory items by unit cost, with expensive items classi-fied as ‘A' items and low cost items classified as ‘C' items. Is this statement true?

A.

Yes, 'A' items represent approximately 20% of total unit prices

B.

Yes, 'C' items with the lowest unit prices are the tail spends

C.

No, ABC analysis considers the usage of each inventory item

D.

No, ABC analysis considers the supply risks associated with an inventory item

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Question # 20

Decommissioning, removal and disposal of assets may have impact on the environment. An organisation should have policies and procedures in place to enhance its environmental performance. Which standard family provides the guidance on environmental policies and procedures?

A.

ISO 22000 family

B.

ISO 9000 family

C.

ISO 14000 family

D.

ISO 27000 family

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