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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 is the best definition of reorder point?

Options:

A.

The point at which stock will fall to zero minus lead-time

B.

The point when one unit of stock remains in stock

C.

The point when stock reaches zero

D.

The level inventory at which an order must be made

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Question 2

The size of order that minimises the total cost of acquiring and holding stock is known as...

Options:

A.

Order quantity

B.

Economic Order Quantity

C.

The correct quantity

D.

Average stock

Question 3

An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?

Options:

A.

No, the organisation may recover the value of the assets by reselling it

B.

Yes, the organisation incurs high maintenance cost during the disposal processes

C.

Yes, some assets require enormous decommissioning costs

D.

No, disposal of assets always bring positive cash flow to the organisation

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