CIPS Exam 2023 L4M7 Dumps Updated Questions UPDATED Aug-2023 [Q77-Q101]

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CIPS Exam 2023 L4M7 Dumps Updated Questions UPDATED Aug-2023

Get The Most Updated L4M7 Dumps To Level 4 Diploma in Procurement and Supply Certification

CIPS L4M7 Exam is ideal for professionals who have already completed the CIPS Level 4 Diploma in Procurement and Supply, or who have equivalent qualifications or experience. It is also suitable for those who are currently working in asset management roles or who are looking to transition into this field.

Q77. A manufacturer is making a plan for strategic safety stock. To do so, they must analyse the proba-bility of a stock out occurring and the cost impacts if it does. Which of the following are typical costs the manufacturer may incur in ‘out of stock’ event? Select TWO that apply.

Extra costs for urgent transportation

Cost of equipment downtime

Costs for qualifying suppliers

Costs of handling inventory

Q78. Multiple approval levels for a small purchase request is an example of which type of waste?

Over-processing

Not using talent

Over-production

Inventory

Q79. Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

Eliminating dead stock or inventory

Temporary warehousing

Installing double-deep pallet racking

Consignment stocking

Adopting carousel-type storage

Q80. When purchasing a capital asset, an organisation should analyse the costs and benefits that the asset may bring. Which of the following factors are considered in cost-benefit analysis? Select TWO that apply.

The cost of the asset

Current liabilities in the balance sheet

Shareholders’ equity

The cumulative cash flows generated by the asset

Dividends paid

A cost-benefit analysis is a process businesses use to analyze decisions (such as capital investment). The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action.
A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.
The costs involved in a CBA might include the following:
– Direct costs would be direct labor involved in manufacturing, inventory, raw materials, manufacturing expenses.
– Indirect costs might include electricity, overhead costs from management, rent, utilities.
– Intangible costs of a decision, such as the impact on customers, employees, or delivery times.
– Opportunity costs such as alternative investments, or buying a plant versus building one.
– Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following:
– Revenue and sales increases from increased production or new product.
– Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction due to enhanced product offerings or faster delivery.
– Competitive advantage or market share gained as a result of the decision.
An analyst or project manager should apply a monetary measurement to all of the items on the cost-benefit list, taking special care not to underestimate costs or overestimate benefits. A conservative approach with a conscious effort to avoid any subjective tendencies when calculating estimates is best suited when assigning a value to both costs and benefits for a cost-benefit analysis.
Finally, the results of the aggregate costs and benefits should be compared quantitatively to deter-mine if the benefits outweigh the costs. If so, then the rational decision is to go forward with the project. If not, the business should review the project to see if it can make adjustments to either increase benefits or decrease costs to make the project viable. Otherwise, the company should likely avoid the project.
Reference:
– Cost-Benefit Analysis (Investopedia)
– CIPS study guide page 175
LO 3, AC 3.2

Q81. 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?

Finance

Bill of materials

Master production schedule

Inventory records

Q82. Which of the following is the formula for calculating the re-order level?

Average usage in a lead-time / Required level of safety stock

Required level of safety stock x Average usage in a lead-time.

Required level of safety stock – Average usage in a lead-time

Average usage in a lead-time + Required level of safety stock

Q83. 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….?

√(D*S/2H)

√(2D*S/H)

√(D*S*H)

√(D*S/3H)

Q84. A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock. Safety stock can be used to accommodate which of the following?
1. Variability of stock turn
2. Variability of holding costs
3. Variability of demand
4. Variability of lead time

1 and 3 only

1 and 2 only

2 and 4 only

3 and 4 only

Q85. Which of the following can replace pallets as bases for unit loads but they require push pull acces-sories to retrieve or discharge unit load?

Shrink wraps

Post pallets

Skids

Slip sheets

Q86. To make loading/unloading more effective and efficient, which feature should be included in vehi-cle dock design?

Steeper slope will reduce the chance of errors and accidents

‘Dual-use’ docks are always the most efficient

Vehicle docks only require a small area to ensure faster goods flow

The dock platform is almost at the same level as the height of the trailer’s rear platform

Q87. Extra units that are held in inventory to reduce the risks of stock-out are called…?

Just-in-time

Reorder point

Safety stock

Demand variance

Q88. Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method: First, the customers make orders, then it will decide which components to be pur-chased according to the bill of materials. These components are known as which of the following?

Indirect items

Capital goods

Dependent demand items

Independent forecast items

Q89. MRP system is the most suitable IT system to manage which type of items?

Dependent demand

Construction projects

Independent demand

Fast moving components

Q90. Which of the following code systems is commonly used by governments as a basis for their Cus-toms tariffs and for the collection of international trade statistics?

The International Mobile Equipment Identity

The Harmonized Commodity Description and Coding System

Global Trade Item Number

Global Location Number

Q91. XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?
1. Disposal costs
2. Rentals
3. Operating costs
4. Vendor selection costs

2, 3 and 4

1, 2 and 3

1, 3 and 4

1, 2 and 4

Q92. A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

Increasing safety stock

Expanding replenishment lead time

Decreasing safety stock

Holding more cycle stock

Q93. Toll Group has thousands of end-of-life IT assets that need to be disposed of. The senior manage-ment of Toll Group is largely concerned about sustainability in waste management, especially electronic waste. Before selecting a supplier to manage the process, the procurement team is required to assess the environmental risks regarding disposal of the assets. Risk assessment is basically based on the measurement of which factors?
1. Impact
2. Reward
3. Surveillance
4. Likelihood

1 and 4 only

2 and 4 only

2 and 3 only

1 and 3 only

Q94. The amount of inventory available at the start of an accounting period is known as…?

Buffer stock

Work-in-progress

Opening stock

Closing stock

Q95. XYZ Ltd organises a meeting in order to decide on the safety stock level of a strategic material which is used in XYZ latest product – DMD. To do this, they must forecast the future demand for this new product. In the meeting, external consultants are invited to join with cross-functional team. Each person of the group anonymously replies to questionnaires and subsequently receives feedback in the form of a statistical representation of the “group response,” after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. XYZ Ltd is using which forecasting method?

Objective forecasting technique

Delphi method

Holt-Winters seasonal method

Time series analysis

Q96. When accounting for the disposal of fixed assets, the gain or loss on disposal is equal to…?

The difference between resale price and the cost or valuation less accumulated depre-ciation up to the date of disposal

The difference between resale price and the cost of that asset

The difference between resale price and the cost or valuation plus depreciation up to the beginning of the year in which disposal took place

The difference between resale price and the cost of the asset less depreciation up to the beginning of the year in which disposal took place

Q97. Which of the following are subjective forecasting techniques? Select TWO that apply.

Delphi method

Test marketing

Cycle counting

Pareto principle

Q98. A logistics company has a 2-story warehouse in the suburban are
a. The goods receiving area and dispatch area are located on the ground floor only. There is a lift connecting the two floors. The daily operations of the warehouse are quite busy. Which of the following would the best arrangement for this warehouse?

Small items in tote boxes will be stored on the ground floor with forklifts and other equipment, high-usage palletised items will be stored on the first floor

Medium- to low-usage palletised items will be stored on the ground floor, high-usage items will be stored on the first floor where the building administrative office is located

Forklifts and other warehouse equipment will park on the ground floor, all inventories will be stored on the first floor

Pallets, roller cages and other bulky items will be stored on the ground floor, smaller items in plastic tote boxes will be stored on the first floor

Q99. PPC Refinery (UK) must close down an out-of-date refinery which has very poor environmental performance. The refinery is very sophisticated with many technically complicated machineries, lubricants, coolants and other chemical substances. Decommissioning the refinery is highly risky and hazardous. To manage the decommissioning process well, PPC project team must know these machineries and substances in details. Which document can provide the technical details on the refinery?

Original specifications

Non-disclosure agreement

Code of Conduct

Corporate social responsibility policy

Q100. 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

Q101. Which of the following statements holds true about inventory holding costs?

They decline as the cost of the inventory item rises

They always exceed total ordering costs