Free Whole Life Asset Management Exam L4M7 Exam Practice Test

The minimal total cost is always achieved when there is only one warehouse. Is this statement true?

• No, fewer warehouse may lead to increasing transport costs
• Yes, because the operation cost for warehouse reaches minimal level
• Yes, because warehouse overheads are fully utilised
• No, more warehouses will reduce the cost of storage

The purchase-order lead time is the...?

• Period between receiving a customer order and producing the products
• Time needed to correct errors in the defective products
• Period between placing an order and its delivery
• Period between receiving a customer order and delivering the items

Which of the following is NOT an improvement available in ERP II in compare with ERP?

• ERP II systems are closed and silo-working
• ERP II enables the organisation to collaborate with trading partners across the supply chain
• ERP II crosses all sectors and segments of business, including service, government and asset-based industries
• ERP II offers better integration with other proprietary software

Which of the following correctly describes the triple bottom line?

• Professional, Planet, Profit
• People, Planet, Project
• People, Product, Profit
• People, Planet, Profit

Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?

• Pareto curve
• Opitz system
• Forrester effect
• Seasonal demand

An electricity company charges its customers monthly fee for access and a usage fee for consump-tion of electricity. Which pricing structure is the company using?

• Fixed pricing
• Multi-part pricing
• Dynamic pricing
• Freemium Pricing

Which of the following best defines 'exponential moving average'?

• A forecasting technique where the average is calculated by dividing the sum of the val-ues by the number of values
• A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined level
• A process by which a decision is taken at a period end or review point to determine how much to reorder
• A forecasting technique where each demand is multiplied by a weighting factor

Company XYZ is a candy manufacturer. Company XYZ makes a batch of 1,000 Christmas candy canes that are no longer edible after December 31. Company XYZ is able to sell 750 canes of the batch, but the other 250 are sitting in the warehouse. December 31 comes, and these candy canes is no longer sell-able. The batch of 250 candy canes belongs to which type of inventory?

• Obsolete inventory
• Buffer stock
• Redundant inventory
• Stockout

A major investment bank is planning to purchase a complex banking system that will interface with multiple applications at varying times of the day. Before deploying the system, there are various levels of testing that must be performed through joint testing between the in-house team and off-shore testing consultants. The testing will be performed in a resource-constrained shared environment and managed by the on-shore development team. The costs for testing are generally classified as...?

• Insurance
• Maintenance costs
• Acquisition costs
• Purchase prices

Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.

• Financial costs
• Economic order quantity
• ABC analysis
• Takt time
• Environmental issues