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CIPS L4M7 exam is a challenging and rigorous exam that requires candidates to have a deep understanding of asset management concepts and practices. It is designed for individuals who have extensive experience in the field of asset management, as well as for those who are looking to advance their careers in this field. Candidates who successfully Pass L4M7 Exam will be able to demonstrate their expertise in asset management, which can help them stand out in their careers and increase their earning potential.

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CIPS Whole Life Asset Management Sample Questions (Q238-Q243):

NEW QUESTION # 238
The size of the order that minimizes the total cost of acquiring and holding stock is known as ...

A. Average stock
B. Correct quantity
C. Economic order quantity
D. Order quantity

Answer: C

Explanation:
The Economic Order Quantity (EOQ) is the ideal order size that minimizes total inventory costs, balancing the ordering cost (costs related to placing and receiving orders) and the holding cost (costs related to storing inventory). The EOQ model is a fundamental concept in inventory management and is derived from the following formula:
EOQ=2DSHEOQ = sqrt{frac{2DS}{H}}EOQ=H2DS
where:
* DDD = demand rate (units per period),
* SSS = cost per order,
* HHH = holding cost per unit per period.
The EOQ model assumes constant demand and lead time, and it does not consider discounts for bulk purchases. By minimizing both ordering and holding costs, EOQ contributes to overall cost efficiency in inventory management, which is essential for whole-life asset management in balancing long-term expenses.

NEW QUESTION # 239
Which of the following is the material handling equipment which uses the suction force to lift an item?

A. Vacuum lifter
B. Sack truck
C. Pallet stacker
D. Dolly

Answer: A

Explanation:
VACUUM LIFTER uses the vacuum pad which attaches itself to a product. The suction force al-lows the product to be lifted (and rotated and placed). Vacuum lifters are used for moving and positioning glass sheets, but are also seen lifting boxes, plastic sacks, sheets of building materials and pipework. Some models feature hydraulic arms which allow easy movement of the lifted load. The lifting system will have a number of sucker pads and vacuum capability which determines the maximum weights and largest items that can be lifted.

DOLLY consists of stack and sets of wheels (either casters or rollers) under the stack that allow the dolly and the heavy object on top of it to move easily and smoothly. For moving in a straight line, rollers is ideal. If you want to move manoeuvrability, dolly with sets of casters will let you swivel and turn.

SACK TRUCK (hand truck) is an L-shaped box-moving handcart. It comprises a small base plat-form with two wheels at the base and a larger vertical structure. A small ledge to set objects on flat against the floor when the sack truck is upright. When moving, the truck and object are then tilted backward based on the vertical structure until the weight is balanced over the large wheels, making otherwise bulky and heavy objects easier to move.

PALLET STACKER is designed to lift and stack pallets. This one is fully mobile so can move easily around the warehouse. An operator would typically sit or stand while driving like a counter-balanced, reach or straddle lift truck.

LO 1, AC 1.3

NEW QUESTION # 240
When designing the layout of a warehouse or stores area, one of the factors to consider is the width of the aisles between the racking. Which of the following is a main consideration when calculating the aisle width?

A. Turning circle of the forklift truck and the size of the pallet being carried
B. Dimensional depth and height of pallet racks
C. Overall height of driver's cage of the forklift truck
D. Dimensional length and depth of the items on a pallet

Answer: A

Explanation:
The turning circle of the forklift truck and the size of the pallet it carries are primary factors in determining aisle width. The aisle width must accommodate forklift maneuvers for safe and efficient access to stored items. Whole-life asset management emphasizes warehouse layout planning to optimize space usage, reduce handling time, and enhance safety.

NEW QUESTION # 241
A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?

A. Yes, as the payments can be linked directly to a specific performance milestone of the contract
B. Yes, as it means the contract warranties are easier to change
C. No, as it commits the organization to purchasing the equipment and the supplier to deliver it
D. No, as it is an unfair contract term and places the supplier at a disadvantage in the contract

Answer: A

Explanation:
Staged payments linked to milestones (order, delivery, and acceptance testing) provide a fair and structured approach for both buyer and supplier. They ensure:
* Alignment with performance: Payment is contingent on the supplier meeting specific contract stages, protecting the buyer.
* Risk mitigation: The buyer avoids full payment upfront, reducing financial exposure.
In whole-life asset management, this approach enables better cost control and accountability throughout the equipment's lifecycle.

NEW QUESTION # 242
MRP software is applied to schedule which of the following?

A. Human resource management
B. Production processes
C. Tax accounting
D. Executive meetings

Answer: B

Explanation:
Material Requirements Planning (MRP) software manages material requirements for manufacturing processes.
LO 2, AC 2.3

NEW QUESTION # 243
......

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L4M7 Premium Files & L4M7 Valid Test Testking

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CIPS Whole Life Asset Management Sample Questions (Q238-Q243):

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