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CIPS L4M7 Exam Syllabus Topics:

Section	Objectives
Understand the key elements of whole-life asset management	- Acquisition and procurement strategies - Disposal and end-of-life considerations - Operation and maintenance planning
Understand the concept of whole-life asset management	- Explain the whole-life cost approach - Identify key stakeholders in asset management - Define asset management and its role in procurement
Understand inventory control and management	- Inventory classification and control methods - Demand forecasting and planning - Storage and warehousing principles
Understand the financial aspects of whole-life asset management	- Financial justification and business case development - Total cost of ownership calculations - Budgeting and forecasting for assets
Understand the legal and regulatory requirements	- Contractual and warranty obligations - Health and safety regulations - Environmental and sustainability considerations
Understand the role of technology in asset management	- Data management and analytics - Asset tracking and monitoring systems - Emerging technologies in asset management

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CIPS Whole Life Asset Management L4M7 Prüfungsfragen mit Lösungen (Q142-Q147):

142. Frage
Contracts for hire is a method for renting an item from a business that exists to provide items for use from time to time. A contract for hire has which of the following features?

A. A contract for hire is an agreement for the person hiring out the item to sell it to the person hiring the item
B. Ownership of the item transfers to the person hiring the item at the end of the agreed hire period
C. At the end of the hire period, the person hiring the item keeps possession and lends to other customers
D. The person hiring the item contracts to use the item for a stated period, at an agreed rate per period, on agreed terms

Antwort: D

Begründung:
A contract for hire allows the hirer to use the item for an agreed period and rate, without ownership transferring. This option provides flexibility and avoids the financial commitment of ownership, aligning with whole-life asset management when short-term use or flexibility is more beneficial than purchase.

143. Frage
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

A. 1 and 2 only
B. 1 and 3 only
C. 2 and 4 only
D. 3 and 4 only

Antwort: D

Begründung:
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.

144. Frage
An organisation may incur additional costs in stockout events. Which of the following is an exam-ple of costs of inventory stockouts?

A. The return forgone by investing capital in inventory rather than elsewhere
B. The costs of obsolescence and costs of insurance that change with the quantity of in-ventory held
C. The lost contribution margin on sales forgone as a result of customer dissatisfaction due to unavailability of goods
D. The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease

Antwort: C

Begründung:
Stockout is a situation where an inventory item is not available when required. The costs associated with a stockout include the following:
- Lost of production output - there will be no production until the stockout is resolved (new stock is acquired). For factory operating 24/7 with no spare capacity, this lost output will not be able to be recovered.
- Costs of machine downtime and of overhead spread over a reduced level of output
- Costs of any action required to deal with the stockout...
- Loss of customer goodwill through inability to supply or late delivery
- Loss of sales or new orders
- Loss of market creditability
Reference:
LO 2, AC 2.2

145. Frage
Which of the following are typical characteristics of 2D barcodes? Select TWO that apply.

A. 2D barcodes can contain more data than 1D barcodes
B. 2D barcodes can be read by linear scanners
C. 2D barcodes are exclusively used for marketing purpose
D. The 2D barcodes are machine-readable
E. Every 2D barcodes must conform international standards

Antwort: A,D

Begründung:
Two-dimensional (2D) barcodes look like squares or rectangles that contain many small, individual dots. This has many different types (i.e. Data matrix, QR codes, Aztec code,...) and several different standards in use (i.
e. GS1 standards, ISO/IEC 18004:2015). It can be substituted for 1D barcode, but it has the capability to hold a larger amount of data. For examples, GS1 Data Matrix can contain 3116 Numeric characters or 2335 Alphanumeric characters while GS1-128 barcode has maximum capacity of 48 characters.
Like 1D barcodes, 2D barcodes are also machine-readable with dots/squares and spaces. They have symbology like this:
Since the code is two dimensional, conventional laser scanner can't read it. 2D barcodes require imaging scanner to read.
2D barcodes can be also used for different purposes throughout the supply chain: identifying prod-ucts/SKU (single unit, packaged or pallet), identifying content of a purchase order or delivery, identifying the batch number from which the item originates, identifying the manufacturer, country of origin etc, tracking status of an order, shipment or delivery Reference: CIPS study guide page 44-46 LO 1, AC 1.2

146. Frage
A supplier delivers large quantities of inventory to its customer's store, but only charges for the goods as and when they are used. This can be described as...?

A. Consignment stock
B. Components inventory
C. Multi-stage inventory
D. Multi-echelon stock

Antwort: A

Begründung:
Consignment stock is stock legally owned by one party, but held by another, meaning that the risk and rewards regarding to the said stock remains with the first party while the second party is re-sponsible for distribution or retail operations. Ownership of consignment stock is passed only when the stock is used (issued or sold in the case of a shop). Unused stock in a warehouse may be returned to the supplier when it concerns standard manufactured products. With customer specific items, agreements concerning returning products, should be negotiated.
Reference:
LO 1, AC 1.1

147. Frage
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