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| Section | Objectives |
|---|---|
| Topic 1: Understanding Asset Management | - Principles of whole life asset management
|
| Topic 2: Risk and Value Management | - Managing asset-related risk
|
| Topic 3: Asset Acquisition and Procurement | - Sourcing and procurement of assets
|
| Topic 4: Disposal and End-of-Life Management | - Asset disposal strategies
|
| Topic 5: Operation and Maintenance | - Asset performance and reliability
|
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NEW QUESTION # 237
Which of the following are features of dependent demand items of stock?
* They depend on the production levels of the user departments
* They depend on the production capacity of the supplier
* They can be managed using JIT (Just-in-Time) systems
* They become obsolete within a short time
Answer: B
Explanation:
Dependent demand items rely on the internal production requirements of an organization. These items:
* Depend on user department production levels: Demand is driven by the needs of the production line.
* Can be managed using JIT systems: Just-in-Time inventory helps optimize stock levels based on immediate production needs, reducing holding costs and minimizing waste.
Dependent demand items differ from independent demand items, where demand is customer-driven rather than production-driven, emphasizing demand predictability and timely procurement.
NEW QUESTION # 238
Which of the following are considerations for the socially responsible aspect of the disposal of goods?
1. Ensuring that the public is safeguarded from the short-term and long-term effects of the disposal
2. Ensuring that the organisation arranging for disposal gets value for money from the disposal process
3. Ensuring that there is limited damage to the environment caused by the disposal
4. Ensuring that the disposal of goods minimises the risk and impact to the staff and community
Answer: B
NEW QUESTION # 239
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?
Answer: C
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: CIPS study guide page 131
LO 2, AC 2.3
NEW QUESTION # 240
PRP Toys has to manage annual seasonal demand that requires double the
warehouse space that it has available in order to fulfil the orders. It requires this extra space for only a four week period each year. Which of the following solutions is the most effective way for PBP to manage this problem?
Answer: B
NEW QUESTION # 241
Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply
Answer: C,D
Explanation:
RFID tags are the small devices that can be embedded in labels or attached to tags which work with radio transmitters and/or receivers to identify themselves.
RFID tags can be used to do the following:
- Track individual items
- Track boxes of products, cages of products and pallets
- Track containers with multiple loads
- Locate equipment within a building
- Trigger alarms should equipment or stock be removed without authorisation.
RFID devices have a very small integrated circuit incorporating a small memory capability - many are smaller than 2mm square and 2mm thick. Despite its size, many can hold 2000 characters of data.
RFID operating rage depends on the radio frequency used, receiver capability and the environment. Some tags are only readable from under 1m, others can have a 100m range.
RFID tags and labels are very specific to the type of material and size of your assets. For example, metal will deactivate the RFID antenna and the tag will not transmit at all. Using RFID on metal requires a special type of tag with an RFID block to prevent interference with the antenna. Liquid products can also affect the reliability of the RFID signal. To use RFID tags in specific environ-ments, some technologies are needed to support them.
Reference: CIPS study guide page 49-50
LO 1, AC 1.2
NEW QUESTION # 242
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