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CIPS Whole Life Asset Management Sample Questions (Q68-Q73):

NEW QUESTION # 68
What is the stock turn for a store holding products to the value of £250,000 with annual sales of these products amounting to £1,000,000?

A. 0
B. 1
C. 0.25
D. 0.4

Answer: A

Explanation:
Calculating Inventory Turnover (Stock Turn)
As with a typical turnover ratio, inventory turnover details how much inventory is sold over a period. To calculate the inventory turnover ratio, cost of goods (COGS) is divided by the average inventory for the same period.1 Cost of Goods Sold ÷ Average Inventory or Sales ÷ Inventory In this exercise, the stock turn equal to sales divided by inventory, or 1,000,000:250,000 = 4.
Reference:
LO 2, AC 2.3

NEW QUESTION # 69
A manufacturer has discovered that some of the stock in its storeroom is obsolete and now wishes to take the appropriate action. Should the manufacturer write the stock off?

A. Yes, this will increase the sales for the period
B. No, it should be included with the closing stock
C. No, the best approach would be to leave the stock where it is
D. Yes, as it has no value it must be written off

Answer: D

NEW QUESTION # 70
Which component of an RFID device is responsible for sending and receiving radio waves?

A. Integrated circuit
B. Network database
C. Laser beam
D. Antenna

Answer: D

Explanation:
RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate. RFID Antennas are necessary elements in an RFID system be-cause they convert the RFID reader's signal into RF waves that can be picked up by RFID tags. Without some type of RFID antenna, whether integrated or stand-alone, the RFID reader cannot properly send and receive signals to RFID tags.
Reference:
LO 1, AC 1.2

NEW QUESTION # 71
One of the important outputs of an MRP system is the material requirement plan. This plan shows the net requirements for materials or components to make the final product. Which of the following best describes the net material requirements?

A. Gross requirements - Inventory level - Scheduled receipt
B. Total requirements - order releases + amount on-hand
C. On order + Inventory on-hand
D. Gross requirements + on-order - Inventory on-hand

Answer: A

Explanation:
The net requirements are worked out using the following equation:
Net requirements = Total requirements - Available inventory
Where:
Total requirements = Gross requirements
Available inventory = Inventory on-hand + Units on-order
In the other words: Net requirements = Gross requirements - Inventory on-hand - Units on-order Inventory on-hand is also known as Inventory level, whereas Units on-order can be called Scheduled receipt.
Reference:
LO 2, AC 2.3

NEW QUESTION # 72
Which of the following is the Japanese word for 'billboard' or 'signboard'?

A. Kanban
B. Poka-Yoke
C. Kaizen
D. Muda

Answer: A

Explanation:
Kanban (看板) (signboard or billboard in Japanese) is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT).
Poka-yoke (ポカヨケ, [poka yoke]) is a Japanese term that means "mistake-proofing" or "inadvertent error prevention". A poka-yoke is any mechanism in any process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.
Kaizen is a concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers. Kaizen (改善) is the Sino-Japanese word for "improvement". Kaizen also applies to processes, such as purchasing and logis-tics, that cross organizational boundaries into the supply chain.
Muda (無駄, on'yomi reading) is a Japanese word meaning "futility; uselessness; wastefulness", and is a key concept in lean process thinking, like the Toyota Production System (TPS) as one of the three types of deviation from optimal allocation of resources (the others being mura and muri). Waste reduction is an effective way to increase profitability.
Reference:
LO 2, AC 2.3

NEW QUESTION # 73
......

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