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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

Staff at DIY Products Inc (DPI) have been experiencing issues with the identification of stock items. The current labelling system is outdated and unreliable. DPI has therefore invested in a machine-readable approach. Each item has a unique number that is attached visibly to the packaging. This number can be deciphered by a scanner to aid identification. This approach is known as which of the following?

Options:

A.

Standard certification

B.

Bar coding

C.

Order tracking

D.

Product tagging

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Question 2

A company does not have enough space to hold inventory to satisfy an external foreign market. Therefore, the board of directors have decided that the company would buy stock in bulk and pay a fee for storage to a third-party warehouse provider local to the foreign market. This would allow the company to focus on other aspects of the business. The stock will be called off as and when required. Which of the following strategies is being pursued by this company?

Options:

A.

Cross-docking

B.

Insourcing

C.

Outsourcing

D.

Partnering

Question 3

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

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