Free CIPS L4M7 Exam Questions

Question 1

Warehouse automation involves the use of technology to perform as many warehousing tasks as possible. There are several benefits that can be gained by using automation in a warehouse. They are...

A : Maintenance costs, downtime due to malfunction, investment costs, and reduced flexibility

B : Decreased speed, increasing cost, improved efficiency, and maximising space

C : Reduced customer service, reduced picking errors, reduced accidents, and minimised space utilisation

D : Increased speed, decreasing cost, improved efficiency, and maximised space

Answer: D

Question 2

Which of the following are critical factors that must be considered when evaluating warehouse or storage locations? The cost of the proposed locationWho owns the storage location or warehouse Access to transport networks The number of windows in the building

A : 1 and 3 only

B : 2 and 3 only

C : 2 and 4 only

D : 1 and 4 only

Answer: A

Question 3

Which ONE of the following correctly differentiates between obsolescent and redundant stock?

A : Obsolescent stock is in short supply, redundant stock has no current supplier with stock available

B : Obsolescent stock is damaged goods that need returning to suppliers, redundant stock is no longer stocked by the organization

C : Obsolescent stock has been updated by another item but can still be used, redundant stock is no longer used by an organization

D : Obsolescent stock has been supplied by a failed supplier, redundant stock requires quality testing before use

Answer: C

Question 4

Which of the following are critical factors that must be considered when evaluating warehouse or storage locations? The cost of the proposed locationWho owns the storage location or warehouse Access to transport networks The number of windows in the building

A : 1 and 3 only

B : 2 and 3 only

C : 2 and 4 only

D : 1 and 4 only

Answer: A

Question 5

Amanda is the purchasing manager for AB Construction based in France. She is considering purchasing an asset from overseas but knows she must account for fluctuations in exchange rates in the contract. Is Amanda correct?

A : No, as it will be better to purchase the asset in AB Construction's local currency as it would be efficient and more stable

B : Yes, as AB Construction could pay more for the asset than intended and Amanda should include a currency fluctuation clause

C : No, as the price can be re-negotiated post-contract sign-off by AB Construction and the supplier

D : Yes, as Amanda will be able to decide the currency exchange rates to be used

Answer: B