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| Section | Objectives |
|---|---|
| Topic 1: Asset Acquisition and Procurement | - Sourcing and procurement of assets
|
| Topic 2: Operation and Maintenance | - Asset performance and reliability
|
| Topic 3: Risk and Value Management | - Managing asset-related risk
|
| Topic 4: Understanding Asset Management | - Principles of whole life asset management
|
| Topic 5: Disposal and End-of-Life Management | - Asset disposal strategies
|
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NEW QUESTION # 112
In the periodic review system, the order quantity is the same for each order. Is this statement true?
Answer: B
Explanation:
Fixed-Time Period System (or Periodic Review system) is the inventory management system in which inventory is checked in fixed time periods, T, and the quantity ordered varies. The system also contains a target inventory level, R, which is restored when order received. The order quantity is calculated as:
Q = R - IP
where: Q = order quantity
R = target inventory level
IP = inventory position
Inventory position (IP) is equal to inventory on-hand plus quantity on order minus backorder (if any) The order quantity varies because the inventory position at each review point differs from each other.
LO 2, AC 2.3
NEW QUESTION # 113
Which of the following are recognised hidden costs associated with global sourcing?
* Quality control and nonconformance costs
* Increased lead times and inventory carrying costs
* Lower labour and wage costs
* Cost of tariffs and duties in supply chains
Answer: D
NEW QUESTION # 114
Which of the following is a forecasting technique?
Answer: C
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 the most recent products purchased (or pro-duced) are the first to be expensed as cost of goods sold (COGS)-which means the lower cost of older products will be reported as inventory.
Moving average: a calculation to analyse data by creating series of averages of different subset of full data set.
It is commonly used with time series data to smooth out short-term fluctuation and highlight long-term trends or cycle ABC analysis is a method of analysis that divides the subject up into three categories: A, B and C.
There is no technique called time-weighted series.
LO 2, AC 2.3
NEW QUESTION # 115
Which of the following best describes category 'A' in ABC analysis in inventory management?
Answer: D
Explanation:
ABC classifications are applied to stock and its management is based loosely on the Pareto princi-ple, better known as the 80/20 rule.
The likely outcome of analysis of inventory (value importance):
- Category A - about 20% of the stock items account for about 80% of the total inventory value. Items in category A have the highest value.
- Category B - about 30% of items account for about 15% of total inventory value
- Category C - the remaining 50% of items account for 5% of the total inventory value Reference:
LO 2, AC 2.1
NEW QUESTION # 116
When considering the purchase of a capital asset, there are a number of factors to consider. These include cost of operation, spares, disposal and reuse. Which other factors could be considered?
1. Who owns the equipment
2. Compatibility with existing equipment
3. Contribution to turnover
4. Cost of maintenance
Answer: D
NEW QUESTION # 117
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2026 Latest Free4Dump L4M7 PDF Dumps and L4M7 Exam Engine Free Share: https://drive.google.com/open?id=11sEF4tNkuXuCSjcFs-qkdbJ52SU0omlT