Online Access Free L4M7 Practice Test

When deciding on the storage facilities and locations, an organisation needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities.
Is this statement true?

• A.No, subjective judgements are the best as they compensate for weaknesses of quantita-tive analysis
• B.Yes, quantitative analysis is easy to implement as it is based on 'hard' facts
• C.No, some intangible information is difficult to collect and measure
• D.Yes, quantitative analysis provides a reality based on numerical values

Assuming that all other factors are constant except one, the net present value of a capital expendi-ture increases when...?

• A.Cash outflow during a time period increases
• B.The initial cost of a project increases
• C.Net cash flow during a time period increases
• D.The discounted rate increases

What are the contents of master production schedule in MRP system?

• A.The total number of labour required to produce the final product
• B.The investment required for production
• C.How many final products will be made and when to make them
• D.What components and materials are and when to purchase them

Which of the following materials handling equipment can be used in the warehouse? Select THREE that apply.

• A.Forklift
• B.Pallet dollies
• C.Bar coding
• D.Conveyor system
• E.Electronic data exchange

Using consignment stocking with suppliers can assist with flexible warehousing when space is at a premium in the warehouse. Another advantage of using the consignment stocking approach is that ...

• A.the goods are not produced until the customer places a purchase order
• B.it increases the amount of stock that needs to be held by the customer
• C.inventory management is easier as the stock belongs to the supplier
• D.the goods do not have to be paid for until the customer uses them