Free L4M7 Exam Braindumps (page: 17)

Page 17 of 34

Which of the following are main objectives of warehouse operations? Select TWO that apply.

  1. To ensure stock available when customers demand
  2. To create sufficient space for redundant stock
  3. To minimise stock loss and deterioration
  4. To generate check digits for a product code
  5. To maintain the highest level of buffer stock

Answer(s): A,C

Explanation:

The purposes of stores and warehouses are:
1. Maximum use of space.
2. Ready access to all items.
3. Efficient movement of goods.
4. Effective utilization of labour & equipment's
5. Maximum protection of items
6. Good-house-keeping.


Reference:

- Warehousing: Meaning, Objectives and Functions
- CIPS study guide page 3
LO 1, AC 1.1



Which of the following is the core idea of Lean manufacturing?

  1. New product development
  2. Waste elimination
  3. Improving response to erratic demand
  4. Business Continuity Planning

Answer(s): B

Explanation:

The core idea of lean manufacturing is actually quite simple...relentlessly work on eliminating waste from the manufacturing process. Waste is defined as any activity that does not add value from the customer's perspective. According to research conducted by the Lean Enterprise Research Centre (LERC), fully 60% of production activities in a typical manufacturing operation are waste ­ they add no value at all for the customer.
On the other hand, agile manufacturing places an extremely strong focus on rapid response to the customer ­ turning speed and agility into a key competitive advantage.


Reference:

CIPS study guide page 127-129
LO 2, AC 2.3



Which of the following is often created by each business and commonly used for the purpose of inventory management?

  1. SKU
  2. ISBN
  3. Harmonised system
  4. FDA product code

Answer(s): A

Explanation:

Organisations often create their own stock keeping unit (SKU) numbering system, which may or may not have a meaningful structure. Stock keeping unit is a number that is assigned to a product for the purpose of inventory management and is of tracking. In other words, a stock keeping unit is a unique identifier assigned to each product for easier and more efficient record keeping. An FDA (US Food and Drug Administration) product code describes a specific product and contains a combination of five to seven numbers and letters. The product code submitted with each FDA line item should match the actual product name and/or invoice description of the product. The International Standard Book Number is a numeric commercial book identifier which is in-tended to be unique. Publishers purchase ISBNs from an affiliate of the International ISBN Agency. The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.


Reference:

CIPS study guide page 33
LO 1, AC 1.2



Which of the following is the definition of work in progress inventory?

  1. Inventory that has finished the production process
  2. Inventory introduced into production but not completed as of the stocktake date
  3. Inventory not yet introduced into the production process
  4. Obsolete inventory

Answer(s): B

Explanation:

Work in progress is the stock part-way through a manufacturing process; in the service sectors the term is also used for anything between order and delivery.


Reference:

CIPS study guide page 83
LO 2, AC 2.1



Page 17 of 34



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Tshepang commented on August 18, 2023
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