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質問 # 123
A brewery sells its beer in aluminum cans. It recycles the cans by using contractors to collect and mold the used cans. This is an example of...?
- A. Closed-loop recycling
- B. Open-loop recycling
- C. Reuse
- D. Carbon recycling
正解：A
解説：
There are two main processes of recycling - open loop recycling and closed loop recycling.
Open Loop Recycling
Open loop recycling is a method that delays disposal by converting manufactured goods and spent materials into both new raw materials, which can be used for a manufacturing purpose, as a fuel source for a different manufacturing process and waste products.
Typically, materials recycled through open-loop recycling will be used for purposes different from their original purpose.
This means that the input into the recycling process is converted to a new raw material, which can be used as an input into another manufacturing process.
Materials in an open loop recycling process are treated using various forms of treatment including heat, chemical reactions, or physical crushing.
Closed Loop Recycling
Closed loop recycling is a process where waste is collected, recycled and then used again to make the same product it came from. This process is restorative and regenerative by design and aims to keep materials at their highest utility and value always.
Closed loop recycling is focused on resource sustainability, which means that recycling of a material can be done indefinitely without degradation of properties. In this case, conversion of the used product back to raw material allows repeated making of the same product, which helps hazardous waste generators reduce carbon footprint and achieve corporate sustainability initiatives.
Closed-loop recycling is common in specialized industries, such as the computer and battery industries, which use expensive or complex goods that cannot easily be broken down post-consumption into constituent materials.
A prime example of a closed-loop recycling process is the recycling of aluminum cans. Aluminum can be recycled to form new cans with little material degradation or waste creation.
Reference:
- Open Loop Vs Closed Loop Recycling
- CIPS study guide page 203
LO 3, AC 3.3
質問 # 124
Bulk loose coal that requires massive handling system should be stored in which area?
- A. Chill hub
- B. Store
- C. Heating warehouse
- D. Stockyard
正解：D
解説：
Materials that will not easily deteriorate, are generally stored in open or fairly covered areas (stockyard). The materials are usually in bulk, like steel plates or coils casting, timber coal, steel barrels, cable drums, piping, lampposts, lorries, etc.
Stockyards are open or semi-covered areas that are used for the following:
- Bulk loose or packaged materials
- Bulky or oversized items that may be difficult to move inside
- Materials that may require specialised handling, loading or unloading Below image shows the example of a stockyard that stores loose coal and its handling system.
LO 1, AC 1.1
質問 # 125
Which of the following is the formula for calculating the re-order level?
- A. Required level of safety stock - Average usage in a lead-time
- B. Average usage in a lead-time / Required level of safety stock
- C. Average usage in a lead-time + Required level of safety stock
- D. Required level of safety stock x Average usage in a lead-time.
正解：C
解説：
In management accounting, reorder level (or reorder point) is the inventory level at which a com-pany would place a new order or start a new manufacturing run.
Reorder level depends on a company's work-order lead time and its demand during that time and whether the company maintain a safety stock.
If a company maintains a safety stock, reorder level calculation changes are follows:
Reorder Level = Average Demand × Lead Time + Safety Stock
Reference:
LO 2, AC 2.3
質問 # 126
The size of order that minimises the total cost of acquiring and holding stock is known as...
- A. The correct quantity
- B. Order quantity
- C. Average stock
- D. Economic Order Quantity
正解：D
質問 # 127
One of the classifications of inventory is referred to as 'indirect supplies'. Which of the following items are examples of indirect supplies in a water bottling plant?
* Lubricants for maintenance of production machines
* Computer cartridges for the procurement office
* Reams of printed labels to stick on water bottles
* Blue-coloured plastic caps to seal the water bottles
- A. 1 and 2 only
- B. 2 and 3 only
- C. 3 and 4 only
- D. 1 and 3 only
正解：A
質問 # 128
In a manufacturing organisation, which of the following explains an 'indirect' stock classification of items?
- A. Where the stock is not used as part of manufacturing of the finished product
- B. Where the stock has been acquired from a distributor rather than another manufacturer
- C. Where the stock is currently held in a warehouse owned by another organisation
- D. Where the stock does not have to be paid for until it has been used by the manufacturer
正解：A
質問 # 129
For which of the following is the 'delphi method' used?
- A. Valuing stock
- B. Forecasting demand
- C. Classifying products
- D. Controlling products
正解：B
解説：
Delphi method is a structured forecasting technique using a panel of experts and a number of rounds of questioning. Responses are shared after each round and the experts encouraged to recon-sider their own responses. It is intended to achieve a consensus view.
Reference:
LO 2, AC 2.3
質問 # 130
Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method:
First, the customers make orders, then it will decide which components to be pur-chased according to the bill of materials. These components are known as which of the following?
- A. Independent forecast items
- B. Dependent demand items
- C. Indirect items
- D. Capital goods
正解：B
解説：
Dependent demand is the requirement for stock item which is directly related to and therefore de-pendent upon the rate of production (examples are: raw materials, components, energy). The com-ponents in the scenario are dependent demand items.
Independent demand is the requirement for stock item which is not directly related to, and is therefore independent of rate of production.
質問 # 131
When deciding on the storage facilities and locations, an organisation needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities.
Is this statement true?
- A. Yes, quantitative analysis provides a reality based on numerical values
- B. No, some intangible information is difficult to collect and measure
- C. Yes, quantitative analysis is easy to implement as it is based on 'hard' facts
- D. No, subjective judgements are the best as they compensate for weaknesses of quantita-tive analysis
正解：B
解説：
Decisions regarding stores and warehouse locations involve a complex range of issues that are unique to each business. Most storage facilities and location decisions are based on a combination of qualitative and quantitative analysis.
Qualitative analysis uses subjective judgment to analyze a situation based on non-quantifiable in-formation, such as potential markets for new products, forecast on possible risks that may happen, etc.
Quantitative analysis (QA) is a technique that uses mathematical and statistical modeling, meas-urement, and research to understand behavior. Quantitative analysts represent a given reality in terms of a numerical value.
This may include the following:
- Cost analysis for the current premises and future predictions based on current premises
- Cost analysis for routine operations
- Current inventory performance measures: lead times, service levels, rate of stock turn, stock-outs in a given period and stock cover To get a big picture of current situation and future demands, organisation should combine both qualitative and quantitative methods so that useful information is achieved and well-informed decisions are made.
質問 # 132
XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?
1. Disposal costs
2. Rentals
3. Operating costs
4. Vendor selection costs
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
正解：C
解説：
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.
Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased. Since the lessee does not own the asset, it is not responsible for disposing the assets, and therefore, disposal costs are not attributable to the lessee. The lessee usually incurs rentals and operating costs. Finally, a company should treat the lease the same as other contracts, which they must qualify the supplier.
質問 # 133
Which of the following are warehouse layouts that allow the cross aisle to meet picking aisle at angles different from 90 degrees?
1. 'Fan' shaped layout
2. Herringbone-shaped layout
3. U-shape layout
4. L-shape layout
- A. 1 and 2 only
- B. 2 and 3 only
- C. 3 and 4 only
- D. 1 and 3 only
正解：A
解説：
In a traditional warehouse, storage racks are arranged to create parallel picking aisles, perhaps with one or more cross aisles to allow workers to move quickly between picking aisles. This structure forces workers to travel rectilinear distances (north-south and east-west) to picking locations.
Kevin R. Gue and Russell D. Meller proposed alternative aisle designs:
- The 'Fan' shaped layout (or "Flying V"). This layout maintains parallel picking aisles, but al-lows the cross aisle to take on a different shape. If travel begins and ends at the bottom of the V, Gue and Meller expected distance to retrieve a single pallet is 10% less in this warehouse than in an equivalent traditional design.
- The Herringbone-shaped layout (or commonly referred as Fishbone layout) combines the verti-cal picking rows of a traditional warehouse with a second set of horizontal picking rows, divided by a V-shaped diagonal alley crossing the entire warehouse. This simple modification to the typical warehouse design allows employees (e.g. a forklift driver) to increase travel speed between picking locations. Efficiency gains achieved through a layout reconfiguration would reduce picking cost up to 23% compared to an equivalent warehouse using a traditional configuration.
Reference
Aisle Design - Kevin Gue
LO 1, AC 1.1
質問 # 134
Which of the following is a description of a distribution centre?
- A. A building that offers value-added services like product mixing, order fulfilment, cross-docking, and packaging
- B. A large building for storing things before they are sold, used, or sent out to shops
- C. A building which is rented to tenants, usually on a short-term month-by-month basis
- D. A large metal box of a standard design and size used for the transport of goods by road, rail, sea, or air
正解：A
質問 # 135
Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.
- A. Financial costs
- B. Environmental issues
- C. Economic order quantity
- D. ABC analysis
- E. Takt time
正解：A、B
解説：
If the planning and mitigation measures fail and redundant or obsolete stock is identified, it needs to be removed from the current inventory location as quickly as possible. There are some methods to dealwith these types of stock. The worst case scenario is disposal to landfill, which is inadvisable if it can be avoided, both from environment point of view and the financial costs of such disposal.
For example, the problem of obsolete pesticides remains extremely serious and urgent. Many of the stocks identified continue to deteriorate thereby giving rise to an ever escalating source of severe pollution and posing a threat to human health, the environment and development in particular. To reduce the impact of obsolete pesticides on environment, FAO initiated a project in Yemen in which a total of 262 tonnes of obsolete pesticides were removed from 20 different sites and successfully disposed of between March and June 1996. The major field operation was completed in six weeks during which period almost all obsolete pesticides were brought to a central location and subsequently shipped to the United Kingdom for incineration.
質問 # 136
Which of the following are main objectives of warehouse operations? Select TWO that apply.
- A. To generate check digits for a product code
- B. To minimise stock loss and deterioration
- C. To create sufficient space for redundant stock
- D. To ensure stock available when customers demand
- E. To maintain the highest level of buffer stock
正解：B、D
解説：
The purposes of stores and warehouses are:
1. Maximum use of space.
2. Ready access to all items.
3. Efficient movement of goods.
4. Effective utilization of labour & equipment's
5. Maximum protection of items
6. Good-house-keeping.
質問 # 137
The width of aisles within a warehouse is determined by...?
- A. The length of storage racking
- B. Turning cycle of forklift and the size of pallets
- C. The location of goods-in and goods-out doors
- D. The height of the building
正解：B
解説：
Below is a formula from Toyota you can use to make an informed decision.
1. Start with the basic right-angle stacking width
2. Add the load length
3. Add 12 inches for clearance
The basic right-angle stacking width is the smallest amount of space a forklift needs turn in order to insert its forks into a pallet. You can find basic right-angle stack measurements in the equipment manual or by contacting TMHNC if your business is located in Northern California. This measurement does not include the length of the load or room need for clearance.
Load lengths vary depending on your application, products, etc. As a starting point, a standard pallet has a 48- inch load length. Always check your forklift's data plate for the rated capacity (which is affected by attachments and other factors).
Adding 12 inches for clearance ensures you have enough room for your forklift's turn radius and helps protect against damage from operator error and/or product that may hang over the edge of the pallet.
質問 # 138
Which of the following are examples of associated costs resulting from running out of inventory? SelectTWO that apply.
- A. The costs associated with production machine downtime
- B. The costs associated with urgent delivery of raw materials
- C. The costs associated with product deterioration
- D. The costs associated with the IT ordering platform
- E. The costs associated with receipting the goods
正解：A、B
質問 # 139
Resevoir Inc runs several oil refineries across the country. These refineries require heavy invest-ment, particularly in maintenance, repair and operating (MRO) inventory. But the inventory turno-ver rate of these MRO items are low, while some items have expired date, which increases the risks of obsolescence. Which of the following methods can address the issues of these MRO items?
- A. Larger safety stock
- B. Forrester effect
- C. Just in case
- D. Vendor-owned stock
正解：D
解説：
Where stock turn (inventory turnover) is low and there are potential risks of redundancy or obsolescence, the buying organisation may adopt vendor owned stock. In this system, a supplier (vendor) maintains a stock of items ready to be used at the point of customer consumption. The supplier owns the stock until it is used by the purchaser; only then is the purchaser invoiced for it.
Just in case and larger safety stock would significantly increase the stock level, which may cause redundancy or obsolescence.
Forrester effect (or Bullwhip effect) is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain.
Reference:
LO 2, AC 2.2
質問 # 140
A warehouse manager is evaluating the use of Automated Guided Vehicles (AGVs) within a non-repetitive task environment. After reviewing their use, the manager decided to invest in a number of AGVs. Was this decision correct?
- A. Yes, as it will reduce the costs of labor by replacing a human worker
- B. No, as it commits the organization to a large capital cost
- C. No, as they are only suitable for use in repetitive task environments
- D. Yes, as it will increase stock picking accuracy and productivity
正解：C
解説：
Automated Guided Vehicles (AGVs) are best suited for environments with repetitive tasks, such as fixed routes in production lines. In non-repetitive tasks, their efficiency and effectiveness decrease. Whole-life asset management prioritizes choosing automation that aligns with operational needs, ensuring cost-effectiveness and suitability for the given tasks.
質問 # 141
Which of the following correctly describes the triple bottom line?
- A. People, Planet, Project
- B. Professional, Planet, Profit
- C. People, Product, Profit
- D. People, Planet, Profit
正解：D
解説：
The triple bottom line is a sustainability framework that examines a company's social, environment, and economic impact (or People, Planet, Profit).
Reference:
- 25 Years Ago I Coined the Phrase "Triple Bottom Line." Here's Why It's Time to Rethink It.
- CIPS study guide page 202
LO 3, AC 3.3
質問 # 142
Which of the following best describes available inventory (also known as inventory position)?
- A. The amount of inventory on hand
- B. The amount of inventory on hand in excess of expected demand
- C. The amount of inventory on order only
- D. The amount of inventory on hand plus the amount of inventory on order
正解：D
解説：
Available inventory (or Inventory position - IP) is equal to inventory on-hand plus quantity on order minus backorder (if any)
質問 # 143
U-shape flow layout can utilise handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?
- A. No, because cross-docking is impossible in U-shape flow warehouse
- 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 aisles between racks in U-shape flow are too small for any handling equipment
正解：B
解説：
A 'U' flow occurs when the goods receipt and dispatch functions are located at the same end of a warehouse building.
Products flow in at receiving, move in to storage in the back of the warehouse, and then to shipping, which is located at the adjacent to receiving on the same side of the building.
Items with higher throughput level are located closer to the loading bays. An example of a 'U' flow design can be seen in the diagram below.
Advantages of 'U' Flow
- Excellent utilization of dock resources because the receiving and shipping processes can share dock doors
- Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled
- Excellent lift truck utilization because put away and retrieval trips are easily combined and be-cause the storage locations closest to the receiving and shipping docks are natural locations to house fast moving items
- Yields excellent security because there is a single side of the building used for entry and exit
質問 # 144
Which of the following is the correct statement about total ordering cost?
- A. Rise as the order quantity rises
- B. Equal the number of orders placed times the cost of placing an order
- C. Rise as the average stock level rises
- D. Fall with the per period usage rate
正解：B
解説：
Typically, ordering costs include expenses for a purchase order, labor costs for the inspection of goods received, labor costs for placing the goods received in stock, labor costs for issuing a supplier's invoice and labor costs for issuing a supplier payment. These costs are irrelevant from the size of the order and are incurred every time a firm places an order.
The total ordering cost will be equal to ordering cost per order multiply with number of orders.
Reference:
LO 2, AC 2.2
質問 # 145
The ABC approach involves classifying inventory items by unit cost, with expensive items classi-fied as 'A' items and low cost items classified as 'C' items. Is this statement true?
- A. Yes, 'A' items represent approximately 20% of total unit prices
- B. No, ABC analysis considers the usage of each inventory item
- C. Yes, 'C' items with the lowest unit prices are the tail spends
- D. No, ABC analysis considers the supply risks associated with an inventory item
正解：B
解説：
ABC analysis is an approach for classifying inventory items based on the items' consumption val-ues.
Consumption value is the total value of an item consumed over a specified time period, for example a year.
The approach is based on the Pareto principle to help manage what matters and is applied in this context:
- A items are goods where annual consumption value is the highest. Applying the Pareto principle (also referred to as the 80/20 rule where 80 percent of the output is determined by 20 percent of the input), they comprise a relatively small number of items but have a relatively high consumption value. So it'slogical that analysis and control of this class is relatively intense, since there is the greatest potential to reduce costs or losses.
- B items are interclass items. Their consumption values are lower than A items but higher than C items. A key point of having this interclass group is to watch items close to A item and C item classes that would alter their stock management policies if they drift closer to class A or class C. Stock management is itself a cost. So there needs to be a balance between controls to protect the asset class and the value at risk of loss, or the cost of analysis and the potential value returned by reducing class costs. So, the scope of this class and the inventory management policies are determined by the estimated cost-benefit of class cost reduction, and loss control systems and processes.
- C items have the lowest consumption value. This class has a relatively high proportion of the total number of lines but with relatively low consumption values. Logically, it's not usually cost-effective to deploy tight inventory controls, as the value at risk of significant loss is relatively low and the cost of analysis would typically yield relatively low returns.
LO 2, AC 2.1
質問 # 146
What is meant by the economic life of an asset?
- A. It is when the asset's effective performance is below the standard required by the organisation
- B. It is the point beyond which it is not possible to obtain any spare parts for the asset
- C. It is the point beyond which it is not possible to find anyone who has the skills to operate the asset
- D. It is the age beyond which it is not worth keeping an asset from a cost point of view
正解：D
質問 # 147
A restaurant needs to buy a new freezer. The owner applies total cost of ownership model to calcu-late the life-time cost of the freezer. This equipment has a price tag of $1,000, the supplier can offer free delivery if the restaurant pays off immediately. Estimated electricity consumption of the freezer is $200 in 5 years. The supplier ascertains that the freezer is very durable, buyer doesn't need to care about maintenance costs. However, if the restaurant needs better protection from breakdowns, the warranty is free for the first 12 months after the purchase. This warranty package can be extended once for another 24-month period with the cost of $75. After 5 years, the buyer will be able to resell this freezer for $250. What would be the estimated total cost of ownership of this freezer if the restaurant owner buys the extended warranty package?
- A. $1,525
- B. $1,275
- C. $1,025
- D. $1,200
正解：C
解説：
The total cost of ownership would be the sum of all estimated costs.
The costs are as the following:
- Purchase price: $1,000
- Electricity consumption: $200
- Extended warranty: $75
Total expense = $1,000 + $200 +$75 = $1,275. Then subtract the resale price from this sum, the total cost of ownership is $1,025.
Reference:
LO 3, AC 3.1
質問 # 148
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