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CIPS Whole Life Asset Management Sample Questions (Q154-Q159):

NEW QUESTION # 154
Jones Warehouse Services Limited has been using a manual handling system to move items throughout its warehouse. This setup is slow, uses more labor resources than automated systems, and recently, several errors and inaccuracies were uncovered in an audit. The company wants to introduce a system that minimizes human errors, lowers workplace risks, and reduces labor costs. Which of the following is a fast and efficient mechanical handling system for transporting a variety of different materials within a warehouse?

Answer: B

Explanation:
A conveyor system is an efficient and reliable method for transporting items within a warehouse. It reduces reliance on manual labor, lowering error rates and enhancing safety by minimizing the physical handling of goods. Conveyors can also be customized to transport various materials, improving productivity and ensuring consistent movement of goods. This aligns with whole-life asset management principles, which focus on efficiency, cost reduction, and risk mitigation across the asset's lifecycle.


NEW QUESTION # 155
Manufacturing resources planning (MRP II) was developed from material requirement planning (MRP). Which of the following is the additional input that is available in MRP II but does not ap-pear in MRP?

Answer: A

Explanation:
MRP I was some of the first business software to be widely adopted during the 1970s. Manufacturers sought these systems in order to improve efficiency and accuracy when it came to basic processes such as production scheduling and inventory management.
By the 1980s, manufacturers realized they needed software that could also tie into their accounting systems and forecast inventory requirements. Enter MRP II, which included these integrations in addition to all the capabilities offered by MRP I. Enterprise resource planning (ERP) software features-which we'll cover later on-are included in the following table for comparison.

Reference:
- MRP vs. MRP II: What's the Difference?
- CIPS study guide page 118-119
LO 2, AC 2.3


NEW QUESTION # 156
An organisation might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure an outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?

Answer: C


NEW QUESTION # 157
Which of the following statements represent a definition for 'obsolescence' in inventory management? Select TWOthat apply.

Answer: B,D


NEW QUESTION # 158
With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?

Answer: C

Explanation:

LO 2, AC 2.3


NEW QUESTION # 159
......

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