Do all types of warehouses require access to daylight to reduce the cost of electricity?
Answer(s): B
The design of a building should consider the advantages of natural light as this can reduce the cost of artificial lighting and improve the environmental performance of the building. Daylight entering the building can also help reduce heating costs. Unfortunately some stocks react badly to direct sunlight, and some stock reacts badly to extreme of temperature or may require a specific temperature for storage. Some stock may require a warmer temperature than the ambient temperature and other stocks may require cooler temperature. For example, fabric and garment are sensitive to direct sunlight as ultraviolet light catalyses a reaction between the water present in all fabrics and atmospheric oxygen to create hydrogen peroxide. This is a bleaching agent and breaks down the chemical bonds that give dyes their colour.
CIPS study guide page 12LO 1, AC 1.1
MRP software is applied to schedule which of the following?
Material Requirements Planning (MRP) software manages material requirements for manufacturing processes.LO 2, AC 2.3
Which of the following is the correct statement about total ordering cost?
Typically, ordering costs include expenses for a purchase order, labor costs for the inspection of goods received, labor costs for placing the goods received in stock, labor costs for issuing a supplier's invoice and labor costs for issuing a supplier payment. These costs are irrelevant from the size of the order and are incurred every time a firm places an order. The total ordering cost will be equal to ordering cost per order multiply with number of orders.
CIPS study guide page 99-100LO 2, AC 2.2
A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock. Safety stock can be used to accommodate which of the following?1. Variability of stock turn2. Variability of holding costs3. Variability of demand4. Variability of lead time
Answer(s): D
Safety stock is also known as buffer stock. As this name suggests, this type of stock provides some kind of 'buffer', which means safety stock will help the business to reduce the shocks induced by volatile demand or disruption on the supply chain. In other words, safety stock will reduces the probability of stockouts. The following graph would explain the reason why an organisation should have safety stock:Figure 1: Safety stock graphAs it is only the buffer against uncertainty, safety stock level should be equal to the deviation of demand or replenishment time. Safety stock should be able to accommodate variance of demand and variance of lead time.
- Safety stock explained- CIPS study guide page 84-86LO 2, AC 2.1
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