Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

Page: 1 / 76

Total 380 Questions | Updated On: Jul 05, 2022

Add To Cart

Question 1

An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright? Capital allowances may be set against tax, and grants may be available There is no initial investment which would tie up the organisation’s working capital It would protect against technological obsolescence as equipment can be replaced as required The total cost may be higher than purchasing the equipment outright

A : 1 and 2 only

B : 2 and 3 only

C : 2 and 4 only

D : 3 and 4 only

Answer: B

Question 2

A manufacturing company warehouse manager has recently decided to adopt across-docking system for some of the components held in storage. Which of thefollowing is associated with goods in cross-docking?

A : Cross-docking eliminates any inventory losses

B : Cross-docking leads to increased finished goods delivery costs

C : Cross-docking significantly increases delivery lead times

D : Cross-docking reduces or eliminates storage requirements

Answer: B

Question 3

Why do you need a life cycle asset management plan?

A : It is the basis of calculating the financial depreciation of the asset

B : It is used to calculate the manpower required to operate the asset

C : It is used to determine what the overall costs of disposing of the asset will be

D : It is a basis for planning resources and budgets to support the asset

Answer: D

Question 4

Which of the following best describe the function of MRP?

A : anning and controlling of production and inventory

B : anning and monitoring of inventory resources

C : anning and controlling of production and finance

D : anning and monitoring of production resources only

Answer: A

Question 5

In the periodic review system, the order quantity is the same for each order. Is this statement true?

A : , the order quantity should be equal to economic order quantity

B : , the inventory position at each review point differs from each other

C : , in periodic review system items are reviewed when the Kanban is triggered

D : , the next order quantity must be larger than the previous one

Answer: B

Page: 1 / 76

Total 380 Questions | Updated On: Jul 05, 2022

Add To Cart