L4M7

What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?A . The gross requirement doesn't take taxes into account, whereas the net requirement includes the tax considerations B. The gross MRP includes consideration of available inventory, whereas the net MRP does...

To test the product durabilityA . 1 and 2 only B. 3 and 4 only C. 2 and 3 only D. 1 and 4 onlyView AnswerAnswer: C Explanation: It would be really convenient if we could just hand our products directly to the customers, but that’s not possible. Packaging needs...

Which of the following is a forecasting technique?A . LIFO B. Moving average C. Time-weighted series D. ABC analysisView AnswerAnswer: B Explanation: Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of...

L-shape layoutA . 1 and 2 only B. 3 and 4 only C. 1 and 3 only D. 2 and 3 onlyView AnswerAnswer: A Explanation: In a traditional warehouse, storage racks are arranged to create parallel picking aisles, perhaps with one or more cross aisles to allow workers to move...

Which of the following is the material handling equipment which uses the suction force to lift an item?A . Vacuum lifter B. Sack truck C. Dolly D. Pallet stackerView AnswerAnswer: A Explanation: VACUUM LIFTER uses the vacuum pad which attaches itself to a product. The suction force al-lows the product...

The amount of inventory available at the start of an accounting period is known as...?A . Buffer stock B. Work-in-progress C. Opening stock D. Closing stockView AnswerAnswer: C Explanation: Opening stock is the starting amount of inventory that a business has at a fixed moment in time. This could be...

Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?A . Purchasing price B. Costs of stockouts C. Acquisition costs D. Holding costsView AnswerAnswer: C Explanation: Direct and indirect costs of holding inventory include the following: - Acquisition costs: preparing the requisition, supplier selection and...

P2P systemA . 2 and 3 only B. 1 and 3 only C. 2 and 4 only D. 1 and 4 onlyView AnswerAnswer: D Explanation: There are several methods to reduce the acquisition costs in procurement. L4M7 study guide lists the following methods: - Buyer discretionary spend - 'User buying'...

Which of the following best describes the relationship between a service level and safety stock?A . A safety stock is not always required to achieve a required service level B. A service level decreases in proportion to a decrease in safety stock C. When safety stock is zero the service...

Which of the following best describes the relationship between a service level and safety stock?A . A safety stock is not always required to achieve a required service level B. A service level decreases in proportion to a decrease in safety stock C. When safety stock is zero the service...