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| Section | Objectives |
|---|---|
| Topic 1: Understanding Asset Management | - Principles of whole life asset management
|
| Topic 2: Disposal and End-of-Life Management | - Asset disposal strategies
|
| Topic 3: Asset Acquisition and Procurement | - Sourcing and procurement of assets
|
| Topic 4: Operation and Maintenance | - Asset performance and reliability
|
| Topic 5: Risk and Value Management | - Managing asset-related risk
|
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NEW QUESTION # 203
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
Answer: C
Explanation:
Safety stock is also known as buffer stock. As this name suggests, this type of stock provides some kind of
'buffer', which means safety stock will help the business to reduce the shocks induced by volatile demand or disruption on the supply chain. In other words, safety stock will reduces the probability of stockouts. The following graph would explain the reason why an organisation should have safety stock:
Chart, histogram Description automatically generated
Figure 1: Safety stock graph
As it is only the buffer against uncertainty, safety stock level should be equal to the deviation of demand or replenishment time. Safety stock should be able to accommodate variance of demand and variance of lead time.
NEW QUESTION # 204
Which of the following factors should be considered in the choice of a warehouse location?
* The type of bar coding that is used
* The impact of local authority by-laws and regulations
* The number of forklifts to be used
* The nature of the items to be stored
Answer: C
NEW QUESTION # 205
Which of the following lists all components, ingredients, and materials required to produce the final product?
Answer: D
Explanation:
Master production schedule (MPS) plans items that have "direct" demand, or "independent de-mand." With independent demand, the demand comes from sales orders, service orders, or fore-casts, and the demand comes directly from customer-or forecasted-requirements. It is the list that provides the timing of the production schedule and shows how much each machine can produce, how many shifts are used, etc.
A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subas-semblies, parts and components, as well as the quantities of each, needed to manufacture a product.
NEW QUESTION # 206
Which type of codes can a barcode laser scanner (linear scanner) read?
Answer: B
Explanation:
One-dimensional (or 1D) barcodes systematically represent data by varying the widths and spac-ings of parallel lines. These include some of the most traditional and well-recognized barcode types, such as the UPC and EAN codes. 1D barcodes are also commonly referred to as linear barcodes.
Two-dimensional (2D) barcodes look like squares or rectangles that contain many small, individual dots. QR codes, Data matrix and Aztec codes are examples of 2D barcodes Numerical code contains all numbers, no letters There are two different scan engine types (laser scanner versus imager) for interpreting the infor-mation provided in the barcode. Many companies producing the technology capable of reading the barcode data uses the term "scanning" regardless of the type of scan engine used. For the purposes of these FAQs, we are trying to draw a clearer distinction for you.
Linear (1D) codes can be scanned with a traditional laser scanner. A laser scan engine uses a laser and mirror to create the bar that scans the information. 1D barcode scanners will only interpret the linear barcode scanning technology. 1D barcode scanners are typically less expensive since the type of encryptions they can decode is limited.
Diagram Description automatically generated
LO 1, AC 1.2
NEW QUESTION # 207
Stock redundancies can be avoided in all situations if managers ensure that all items are purchased more frequently in small quantities. Is this statement TRUE?
Answer: A
NEW QUESTION # 208
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