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CIPS Whole Life Asset Management Sample Questions (Q225-Q230):
NEW QUESTION # 225
Which of the following is a description of a distribution centre?
- A. A building which is rented to tenants, usually on a short-term month-by-month basis
- B. A building that offers value-added services like product mixing, order fulfilment, cross-docking, and packaging
- C. A large metal box of a standard design and size used for the transport of goods by road, rail, sea, or air
- D. A large building for storing things before they are sold, used, or sent out to shops
Answer: B
NEW QUESTION # 226
A piece of machinery has reached the end of its manufacturing life cycle and is due to be disposed of. What is the process that must take place for this to occur?
- A. Inventory management
- B. Commissioning
- C. Whole-life costing
- D. Decommissioning
Answer: D
Explanation:
Decommissioning is the process of safely retiring equipment from use. It involves steps such as cleaning, dismantling, and responsibly disposing of the asset, especially if it contains hazardous materials. Whole-life asset management includes decommissioning as a key phase, ensuring that assets are disposed of cost- effectively and in compliance with environmental standards.
NEW QUESTION # 227
ANTA Logistics is looking for a place to build a new, integrated cold chain facility, "Chill Hub", to its customers. Which of the following need to be considered when selecting the location of the new facility?
Select TWO that apply.
- A. Ease of objective forecasting on inventory level
- B. Volume of obsolescent stock
- C. Availability of product coding system
- D. Availability of the building
- E. Accessibility to roads and highways
Answer: D,E
Explanation:
There are many different factors that must be considered when assessing warehouse and stock locations:
* Operating cost of the location or area
* Availability and suitability of warehouses
* Availability of manpower or labour
* Proximity to suppliers and customers
* Access to transport infrastructure (domestic and international)
* The political and security environment of the location
LO 1, AC 1.1
NEW QUESTION # 228
Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.
- A. Adopting carousel-type storage
- B. Installing double-deep pallet racking
- C. Temporary warehousing
- D. Eliminating dead stock or inventory
- E. Consignment stocking
Answer: C,E
Explanation:
Temporary warehousing (or 'Very short-term warehousing') is offered in the market where organ-isation makes their requirements for space open online to offers or bids for available space. This appears to be an emerging market and service providers in the UK and USA typically quote a price per pallet per week with some also requiring a 'transaction fee' for movements of each pallet in and out.
Consignment stocking is a facility offered by a supplier to a buyer to allow a delivery of stock to the buyer with payment only after it is used or sold to a customer.
Double-deep pallet racking and carousel-style storage are two tools that leverage space within a warehouse:
Double-deep pallet rack
Carousel style storage
NEW QUESTION # 229
What advantage can the use of ABC classification of stock provide in warehouse design?
- A. It assists in deciding on the most appropriate layout, handling systems, and what type of picking system to introduce
- B. It determines where each item is to be located within the warehouse to aid inspection procedures
- C. It gives purchasing staff more time to concentrate on those items that have most financial benefit to the organisation
- D. It allows the organisation to categorise items in alphabetical order for easier storage and retrieval
Answer: A
NEW QUESTION # 230
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