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CIPS L4M7 Exam

Certification Provider: CIPS
Exam Name: Whole Life Asset Management
Number of questions in our database: 135
Exam Version: Mar. 03, 2024
L4M7 Exam Official Topics:
  • Topic 1: Explain the use of product coding in inventory operations/ Order tracking technologies
  • Topic 2: Systems for product coding/ Bar coding/ The use of RFID technologies
  • Topic 3: Environmental standards for packaging/ Materials handling equipment
  • Topic 4: The use of automation in warehousing/ Palletisation and unit loads
  • Topic 5: Opening stock, work in progress, safety stock and finished goods/ Obsolescent and redundant stock Dependent demand and independent demand itemsof stock/ ABC classifications of stock that may apply
  • Topic 6: Understand the key elements of effective inventory control/ Factors that influence stores and warehouse layout
  • Topic 7: Contrast the impact of the use of different warehousing equipment/ Understand methods for the storage and movement of inventory
  • Topic 8: Discuss options to reduce costs whilst mitigating any negative impact on service levels/ Location of stores and warehouses
  • Topic 9: Identify the principles, purpose and impact of stores and warehouse design/ Identify the direct and indirect costs of holding inventory
  • Topic 10: Hidden costs ? global sourcing, risks associated with extended supply chain/ Cross functional support ? ensure access to data
  • Topic 11: Ensure senior management support/ Use best estimates of values available/ Identify the contributing elements to end-of-life costs
  • Topic 12: Differentiate between the different classifications of inventory/ Identify techniques associated with inventory control

Free CIPS L4M7 Exam Actual Questions

The questions for L4M7 were last updated On Mar. 03, 2024

Question #1

Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply

Reveal Solution Hide Solution
Correct Answer: A, E

RFID tags are the small devices that can be embedded in labels or attached to tags which work with radio transmitters and/or receivers to identify themselves.

RFID tags can be used to do the following:

- Track individual items

- Track boxes of products, cages of products and pallets

- Track containers with multiple loads

- Locate equipment within a building

- Trigger alarms should equipment or stock be removed without authorisation.

RFID devices have a very small integrated circuit incorporating a small memory capability - many are smaller than 2mm square and 2mm thick. Despite its size, many can hold 2000 characters of data.

RFID operating rage depends on the radio frequency used, receiver capability and the environment. Some tags are only readable from under 1m, others can have a 100m range.

RFID tags and labels are very specific to the type of material and size of your assets. For example, metal will deactivate the RFID antenna and the tag will not transmit at all. Using RFID on metal requires a special type of tag with an RFID block to prevent interference with the antenna. Liquid products can also affect the reliability of the RFID signal. To use RFID tags in specific environ-ments, some technologies are needed to support them.


LO 1, AC 1.2

Question #2

To make loading/unloading more effective and efficient, which feature should be included in vehi-cle dock design?

Reveal Solution Hide Solution
Correct Answer: D

Warehouse dock is a feature of warehouse design - used for unloading and loading vehicles. It is crucial to carefully design where they are externally located in a facility and choose the best type of dock depending on the available space.

In many cases efficient and effective loading and unloading is achieved by a dock design that places the loading and unloading vehicle' rear platform at the same height as the warehouse floor.

Slopes in docking areas must always be as small as possible: the gentler the slope, the less chance of errors and accidents. If a warehouse is going to be used by large volume vehicles, such as high cubes, it may be necessary to install special devices, such as hydraulically adjustable docks or ground level lift platforms.

Current trends indicate that vehicles that are longer and wider and have a greater volume will be increasingly common. Therefore, when planning the location of the docks, it would be useful to ensure that there is a large area for the approach, manoeuvring and build-up of large vehicles.

One option to increase the efficiency of the docks is to combine reception and dispatch into a single area (dual use). This solution drastically reduces costs and, above all, increases the use of handling equipment and personnel. However, if this is justified by the volume of material flows, there can also be separate access points for each function (some for reception and others for dispatch - 'sole use').


- Warehouse docking areas - Interlake

- CIPS study guide page 13

LO 1, AC 1.1

Question #3

U-shape flow layout can utilise handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?

Reveal Solution Hide Solution
Correct Answer: D

A 'U' flow occurs when the goods receipt and dispatch functions are located at the same end of a warehouse building.

Products flow in at receiving, move in to storage in the back of the warehouse, and then to shipping, which is located at the adjacent to receiving on the same side of the building.

Items with higher throughput level are located closer to the loading bays. An example of a 'U' flow design can be seen in the diagram below.

Advantages of 'U' Flow

- Excellent utilization of dock resources because the receiving and shipping processes can share dock doors

- Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled

- Excellent lift truck utilization because put away and retrieval trips are easily combined and be-cause the storage locations closest to the receiving and shipping docks are natural locations to house fast moving items

- Yields excellent security because there is a single side of the building used for entry and exit


LO 1, AC 1.1

Question #4

Which of the following is the formula for calculating the re-order level?

Reveal Solution Hide Solution
Correct Answer: D

In management accounting, reorder level (or reorder point) is the inventory level at which a com-pany would place a new order or start a new manufacturing run.

Reorder level depends on a company's work-order lead time and its demand during that time and whether the company maintain a safety stock.

If a company maintains a safety stock, reorder level calculation changes are follows:

Reorder Level = Average Demand Lead Time + Safety Stock


LO 2, AC 2.3

Question #5

U-shape flow layout can utilise handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?

Reveal Solution Hide Solution
Correct Answer: D

A 'U' flow occurs when the goods receipt and dispatch functions are located at the same end of a warehouse building.

Products flow in at receiving, move in to storage in the back of the warehouse, and then to shipping, which is located at the adjacent to receiving on the same side of the building.

Items with higher throughput level are located closer to the loading bays. An example of a 'U' flow design can be seen in the diagram below.

Advantages of 'U' Flow

- Excellent utilization of dock resources because the receiving and shipping processes can share dock doors

- Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled

- Excellent lift truck utilization because put away and retrieval trips are easily combined and be-cause the storage locations closest to the receiving and shipping docks are natural locations to house fast moving items

- Yields excellent security because there is a single side of the building used for entry and exit


LO 1, AC 1.1


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