QUESTION: 9

What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?

The gross requirement doesn't take taxes into account, whereas the net requirement includes the tax considerations
The gross MRP includes consideration of available inventory, whereas the net MRP does not
The net MRP includes the amount of inventory on hand, whereas the gross MRP does not
The gross MRP is mostly paper-based, but the net MRP must be computerised

Answer(s): B

Explanation:

Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities. MRP software combines the master production schedule, the bill of materials and the inventory information to work out the net requirements (net MRP) of what to purchase or produce and when. These net requirements are worked out using the following equation:
Net requirements = Total requirements - Available inventory Where:
Total requirement = Gross requirements (gross MRP)
Available inventory = Inventory on hand + Units on order In the other words, Gross MRP = Net MRP + Available inventory, so the answer should be "The gross MRP includes consideration of available inventory, whereas the net MRP does not" LO 2, AC 2.3

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QUESTION: 10

The following are examples of scheduled maintenance except...

Oil changes and regular servicing
Overhauling of machine
Repair signage damage from a recent storm
Cleaning of tank

Answer(s): C

Explanation:

Scheduled maintenance is any repair and upkeep work performed within a set timeframe. It details when given maintenance tasks are performed and by whom. Scheduled maintenance may occur at repeating intervals or in response to a work request.
"Overhauling of machine" means that the machine is regularly checked and corrupted parts are replaced if needed.
"Cleaning of tank" and "Oil changes" also occur at time intervals as scheduled So the correct answer is "Repair signage damage from a recent storm"

Reference:

CIPS study guide page 158-163
LO 3, AC 3.1

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QUESTION: 11

Which of the following are warehouse layouts that allow the cross aisle to meet picking aisle at angles different from 90 degrees?
1. 'Fan' shaped layout
2. Herringbone-shaped layout
3. U-shape layout
4. L-shape layout

1 and 2 only
3 and 4 only
1 and 3 only
2 and 3 only

Answer(s): 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 quickly between picking aisles. This structure forces workers to travel rectilinear distances (north-south and east-west) to picking locations.

Kevin R. Gue and Russell D. Meller proposed alternative aisle designs:
- The 'Fan' shaped layout (or "Flying V"). This layout maintains parallel picking aisles, but al-lows the cross aisle to take on a different shape. If travel begins and ends at the bottom of the V, Gue and Meller expected distance to retrieve a single pallet is 10% less in this warehouse than in an equivalent traditional design.
- The Herringbone-shaped layout (or commonly referred as Fishbone layout) combines the verti-cal picking rows of a traditional warehouse with a second set of horizontal picking rows, divided by a V- shaped diagonal alley crossing the entire warehouse. This simple modification to the typical warehouse design allows employees (e.g. a forklift driver) to increase travel speed between picking locations. Efficiency gains achieved through a layout reconfiguration would reduce picking cost up to 23% compared to an equivalent warehouse using a traditional configuration.

Reference:

Aisle Design - Kevin Gue
LO 1, AC 1.1

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QUESTION: 12

ANTA Logistics is looking for a place to build a new, integrated cold chain facility, "Chill Hub", to its customers.
Which of the following need to be considered when selecting the location of the new facility? Select TWO that apply.

Availability of the building
Ease of objective forecasting on inventory level
Volume of obsolescent stock
Accessibility to roads and highways
Availability of product coding system

Answer(s): A,D

Explanation:

There are many different factors that must be considered when assessing warehouse and stock locations:
- Operating cost of the location or area
- Availability and suitability of warehouses
- Availability of manpower or labour
- Proximity to suppliers and customers
- Access to transport infrastructure (domestic and international) - The political and security environment of the location LO 1, AC 1.1

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QUESTION: 9

Explanation:

QUESTION: 10

Explanation:

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QUESTION: 11

Explanation:

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QUESTION: 12

Explanation: