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L4M7 Exam Dumps : Whole Life Asset Management

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Whole Life Asset Management Questions and Answers

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Question 1

Which of the following are essential aspects that are required for the successful implementation of Just-In-Time (JIT)? SelectTWOthat apply.

Options:

A.

The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

B.

Parts must arrive where they are needed, when they are needed, and in the exact quantity needed

C.

All parts arriving must be of a quality standard which is usable and free from defects

D.

The cost of carrying increased parts inventory to meet customer demand is transferred to the customer

E.

Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

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Question 2

Which of the following statements holds true about inventory holding costs?

Options:

A.

They decline as the cost of the inventory item rises

B.

They always exceed total ordering costs

C.

They depend upon the opportunity cost of tying up funds and the average value of the stock holding

D.

They are independent of the average stock level

Question 3

Long-term forecasting of demand using a subjective method is based on a...

Options:

A.

Predicted cash flow forecast levels used by the organisation

B.

Method of calculating the price in detail within the supply chain

C.

Qualitative, informal, experience-based, or intuitive method

D.

Quantitative, explicit, statistical, or formal method

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