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CIPS Whole Life Asset Management Sample Questions (Q97-Q102):

NEW QUESTION # 97
A food processing manufacturer must be able to trace the ingredients they use and the food manufactured from those ingredients. Which of the following systems provides the opportunity for efficient traceability?

A. Order numbering for each ingredient, customer purchase order for finished products
B. Alphanumeric product code for each ingredient and product code for finished products
C. Commodity coded ingredients and barcoded finished products
D. Batch code for each ingredient and electronic product codes for finished products

Answer: D

NEW QUESTION # 98
One of the important outputs of an MRP system is the material requirement plan. This plan shows the net requirements for materials or components to make the final product. Which of the following best describes the net material requirements?

A. Gross requirements - Inventory level - Scheduled receipt
B. Gross requirements + on-order - Inventory on-hand
C. On order + Inventory on-hand
D. Total requirements - order releases + amount on-hand

Answer: A

Explanation:
The net requirements are worked out using the following equation:
Net requirements = Total requirements - Available inventory
Where:
Total requirements = Gross requirements
Available inventory = Inventory on-hand + Units on-order
In the other words: Net requirements = Gross requirements - Inventory on-hand - Units on-order Inventory on-hand is also known as Inventory level, whereas Units on-order can be called Scheduled receipt.
Reference:
LO 2, AC 2.3

NEW QUESTION # 99
A manufacturer has discovered that some of the stock in its storeroom is obsolete, and now wishes to take the appropriate action. Should the manufacturer write the stock off?

A. No, it should be included with the closing stock
B. No, the best approach would be to leave the stock where it is
C. Yes, this will increase the sales for the period
D. Yes, as it has no value it must be written off

Answer: D

Explanation:
Writing off obsolete stock is standard practice as it no longer holds any value for the organization. This allows for accurate financial reporting by removing items that cannot be sold or used from the balance sheet.
Including it in closing stock would misrepresent asset values, while leaving it unsorted wastes valuable space.
Whole-life asset management emphasizes disposal or recycling options to avoid holding costs for unused assets, reducing storage costs and improving warehouse efficiency.

NEW QUESTION # 100
Which of the following best describes available inventory (also known as inventory position)?

A. The amount of inventory on order only
B. The amount of inventory on hand
C. The amount of inventory on hand in excess of expected demand
D. The amount of inventory on hand plus the amount of inventory on order

Answer: D

Explanation:
Available inventory (or Inventory position - IP) is equal to inventory on-hand plus quantity on order minus backorder (if any) Reference:
LO 2, AC 2.3

NEW QUESTION # 101
ASI Ltd is known for its commitment to sustainability. ASI builds railroad ties and pilings using recycled plastic bottles and industrial waste instead of standard materials such as wood, steel, and cement. This practice helps the company save 15% in compare with traditional material purchases. Which pillar of sustainability would include the practice of ASI Ltd?

A. Profit and People
B. Profit and Expense
C. Planet and Profit
D. People and Planet

Answer: C

Explanation:
The triple bottom line is a sustainability framework that examines a company's social, environment, and economic impact (or People, Planet, Profit). ASI Ltd practice would reduce the waste into the environment as well as keep the business more profitable. So the correct answer should be Planet and Profit.
Reference:
- 25 Years Ago I Coined the Phrase "Triple Bottom Line." Here's Why It's Time to Rethink It.
- CIPS study guide page 202
LO 3, AC 3.3

NEW QUESTION # 102
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