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NEW QUESTION 38
Which is the best definition of reorder point?
- A. The point when one unit of stock remains in stock
- B. The point when stock reaches zero
- C. The level inventory at which an order must be made
- D. The point at which stock will fall to zero minus lead-time
Reorder point is the point either in time or in a process when the next order should be placed.
LO 2, AC 2.3
NEW QUESTION 39
XYZ Ltd is a highly profitable leading industrial distributor with over 60,000 products and an enviable record for customer service. After undertaking preliminary discussions it was decided to analyse the value-adding activities that contribute to XYZ's flagship products. The company is conducting which of the following activities?
- A. Value stream mapping
- B. Kanban
- C. Silo-working
- D. Postponement
According to Hines and Rich, value stream refers to specific parts of the firms that actually add value to the specific product or service under consideration. XYZ Ltd is mapping the value stream by analysing the value-adding activities that contribute to their most important product.
Postponement is a business strategy which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment. An example of this strategy is Dell Computers' build-to-order online store. One of the earliest references to the concept was in a paper by Zinn and Bowersox in the Journal of Business Logistics. They highlighted five types: Labelling, Packaging, Assembly, Manufacturing and Time postponements.
Kanban (signboard or billboard in Japanese) is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT). Taiichi Ohno, an industrial engineer at Toyota, developed kanban to improve manufacturing efficiency. Kanban is one method to achieve JIT. The system takes its name from the cards that track production within a factory. For many in the automotive sector, kanban is known as the "Toyota nameplate system".
Put simply, silo working occurs when several departments or groups within that organisation do not want to share information or knowledge with other individuals they work with.
LO 2, AC 2.3
NEW QUESTION 40
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. Temporary warehousing
- B. Installing double-deep pallet racking
- C. Consignment stocking
- D. Eliminating dead stock or inventory
- E. Adopting carousel-type storage
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
LO 1, AC 1.1
NEW QUESTION 41
The width of aisles within a warehouse is determined by...?
- A. The height of the building
- B. The location of goods-in and goods-out doors
- C. Turning cycle of forklift and the size of pallets
- D. The length of storage racking
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.
- CIPS study guide page 29-30
- How to Calculate Forklift Aisle Width Minimums
LO 1, AC 1.1
NEW QUESTION 42
Which of the following best defines 'exponential moving average'?
- A. A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined level
- B. A forecasting technique where each demand is multiplied by a weighting factor
- C. A process by which a decision is taken at a period end or review point to determine how much to reorder
- D. A forecasting technique where the average is calculated by dividing the sum of the val-ues by the number of values
An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period.
LO 2, AC 2.3
NEW QUESTION 43
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