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  • Exam Name: Whole Life Asset Management
  • Last Update: 29-May-2024
  • Questions and Answers: 135
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L4M7 Questions and Answers

Question # 1

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?









Question # 2

The width of aisles within a warehouse is determined by...?


Turning cycle of forklift and the size of pallets


The length of storage racking


The location of goods-in and goods-out doors


The height of the building

Question # 3

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


The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease


The lost contribution margin on sales forgone as a result of customer dissatisfaction due to unavailability of goods


The costs of obsolescence and costs of insurance that change with the quantity of in-ventory held


The return forgone by investing capital in inventory rather than elsewhere

Question # 4

Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.


Financial costs


Economic order quantity


ABC analysis


Takt time


Environmental issues

Question # 5

The purchase-order lead time is the...?


Period between receiving a customer order and producing the products


Time needed to correct errors in the defective products


Period between placing an order and its delivery


Period between receiving a customer order and delivering the items

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