MRP software is a powerful tool for managing material requirements of manufacturing processes. To keep the software function well, an organisation must have appropriate input dat
Answer(s): A,B,F
A powerful benefit of MRP system is the capacity to produce exception reports, which show deviations from normal planning and performance. These enable anomalies to be investigated with a view to improve future forecasting.Material requirement planning is an electronic system for combining the following:- Known demand- Forecast demand. Known demand and forecasted demand are shown in master production schedule.- Bill of materials for the final product- Inventory records
CIPS study guide page 116-119LO 2, AC 2.3
A manager who is concerned about the environmental impact of packaging should do which of the following?
Answer(s): A
In principle, use of any materials involves an environmental cost. Some packaging materials use a lot of natural resources and energy to produce. The journey taken by packaging from raw material to manufacturing and then to the initial user also incurs a 'carbon footprint'. The weight of packag-ing contributes to the fuel usage of vehicles while the volume used can add up to additional jour-neys or the use of larger vehicles. Finally, the reuse, return, disposal or recycling will also involve additional to the environmental cost.In this question:- 'Purchasethe packaging materials in bulk' may incur additional fuel and carbon footprint in delivering these materials- 'Try to reduce the costs of packaging' may prompt the organisation to use less eco-friendly and cheap materials like polystyrene chips- 'Not use the packaging materials at all' can increase the environmental performance of packag-ing activities, but it also harms the products to be delivered and may cause other environmental problems (i.e. spillage of toxic chemicals into the environment)So the correct answer should be: 'Adopt international environmental packaging standards'. The International Standards Organisation (ISO) has published several standards regarding packaging and environment, namely ISO 18601, ISO 18602, ISO 18603, ISO 18604, ISO 18605, ISO 18606.
CIPS study guide page 67-70LO 1, AC 1.3
"Open stock plus purchases minus closing stock" is the formula of which of the following?
Answer(s): C
The amount of closing stock (properly valued) is used to arrive at the cost of goods sold in a periodic inventory system with the following calculation:Opening stock + Purchases - Closing stock = Cost of goods sold
- CIPS study guide page 130-131- Closing stock definitionLO 2, AC 2.3
When deciding on the storage facilities and locations, an organisation needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities. Is this statement true?
Answer(s): B
Decisions regarding stores and warehouse locations involve a complex range of issues that are unique to each business. Most storage facilities and location decisions are based on a combination of qualitative and quantitative analysis.Qualitative analysis uses subjective judgment to analyze a situation based on non-quantifiable in- formation, such as potential markets for new products, forecast on possible risks that may happen, etc.Quantitative analysis (QA) is a technique that uses mathematical and statistical modeling, meas- urement, and research to understand behavior. Quantitative analysts represent a given reality in terms of a numerical value. This may include the following:- Cost analysis for the current premises and future predictions based on current premises- Cost analysis for routine operations- Current inventory performance measures: lead times, service levels, rate of stock turn, stock-outs in a given period and stock coverTo get a big picture of current situation and future demands, organisation should combine both qualitative and quantitative methods so that useful information is achieved and well-informed decisions are made.
CIPS study guide page 6LO 1, AC 1.1
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