L4M7 exam

The amount of inventory available at the start of an accounting period is known as...?A . Buffer stock B. Work-in-progress C. Opening stock D. Closing stockView AnswerAnswer: C Explanation: Opening stock is the starting amount of inventory that a business has at a fixed moment in time. This could be...

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...

Which of the following statements is true?A . All indirect supplies are independent demand items B. Number of independent demand items may be derived from the forecast C. Dependent demand items are not directly correlated with production rate D. Car engine is an example of independent demand items in a...

Bulk loose coal that requires massive handling system should be stored in which area?A . Chill hub B. Stockyard C. Heating warehouse D. StoreView AnswerAnswer: B Explanation: Materials that will not easily deteriorate, are generally stored in open or fairly covered areas (stockyard). The materials are usually in bulk, like...

The following are examples of scheduled maintenance except...A . Oil changes and regular servicing B. Overhauling of machine C. Repair signage damage from a recent storm D. Cleaning of tankView AnswerAnswer: C Explanation: Scheduled maintenance is any repair and upkeep work performed within a set timeframe. It details when given...

Which of the following best describes the term ‘periodic review’?A . Items are reviewed and orders placed depending on requirements B. Items are reviewed when the Kanban is triggered C. Items are reviewed when the price is at its lowest D. Items are reviewed as part of an imprest systemView...

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...

To test the product durabilityA . 1 and 2 only B. 3 and 4 only C. 2 and 3 only D. 1 and 4 onlyView AnswerAnswer: C Explanation: It would be really convenient if we could just hand our products directly to the customers, but that’s not possible. Packaging needs...

Which of the following is a forecasting technique?A . LIFO B. Moving average C. Time-weighted series D. ABC analysisView AnswerAnswer: B Explanation: Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of...

L-shape layoutA . 1 and 2 only B. 3 and 4 only C. 1 and 3 only D. 2 and 3 onlyView AnswerAnswer: A Explanation: In a traditional warehouse, storage racks are arranged to create parallel picking aisles, perhaps with one or more cross aisles to allow workers to move...