Question 1

Why do you need a life cycle asset management plan?

Options :

A : It is the basis of calculating the financial depreciation of the asset

B : It is used to calculate the manpower required to operate the asset

C : It is used to determine what the overall costs of disposing of the asset will be

D : It is a basis for planning resources and budgets to support the asset

Answer: D

Question 2

U-shape flow layout can utilize handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?

Options :

A : No, because aisles between racks in U-shape flow are too small for any handling equipment

B : Yes, because this layout places receiving docks and despatch docks close to one another

C : Yes, because U-shape layout allows S-line routing more efficient

D : No, because cross-docking is impossible in U-shape flow warehouse

Answer: B

Question 3

What is the main goal of just-in-time?

Options :

A : Waste reduction

B : Better demand forecasting

C : Higher safety stock

D : Leveraging economic order quantity

Answer: A

Question 4

The manufacturer wants to significantly increase the stock to meet seasonal demand, but they have limited resources. Which of the following could satisfy their wishes?

Options :

A : Consolidate deliveries

B : Bulk ordering

C : Variety reduction

D : Consignment stock

Answer: D

Question 5

Which of the following are most likely the benefits of using unit loads? Select TWO that apply.

Options :

A : Safer handling

B : Increase transport time of each item

C : Unit loads must be placed on pallets

D : Reduce handling cost of one unit

E : Minimise space utilisation

Answer: A,D

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