Exam (elaborations)
CIPS M4L7 (Whole Life Assessment Management) LO2 QUESTIONS AND ANSWERS
- Course
- Institution
CIPS M4L7 (Whole Life Assessment Management) LO2 QUESTIONS AND ANSWERS
[Show more]
Content preview
CIPS M4L7 (Whole Life AssessmentManagement) LO2 QUESTIONS AND ANSWERS
What are preliminary costs?
Correct Answer -costs associated with actions before raising the purchase
order
What are placement costs?
Correct Answer -the cost of raising the purchase order and ensuring the
supplier receives it
What are post-placement costs?
Correct Answer -the costs after the purchase order has been raised,
necessary to get the goods to the requestor and payment to the supplier
What are holding costs?
Correct Answer -costs associated with the storage and handling of
physical stock
What are the two types of holding costs?
Correct Answer -- costs related to the value of the goods
- costs related to the physical characteristics of this inventory
what are the costs associated with a stockout?
Correct Answer -- loss of production output - there will be no production
until the stockout is resolved
-costs of machine downtime and of overheads spread out over a reduced
level of output
- costs of any action required to deal with the stockout
, what may still remain after a stockout has been remedied?
Correct Answer -- loss of customer goodwill through inability to supply or
late delivery
- loss of sales or new orders
- loss of market credibility
what are the options to reduce costs while mitigating any impact on
service levels?
Correct Answer -- using lead times and holding costs as part of a price
evaluation
- strategically placed safety stock
- vendor-owned stock
- increased overall inventory levels
- improved forecasting accuracy
- improvements through SRM and KPIs
what is forecasting?
Correct Answer -decision-making tool used by businesses to help in
budgeting, planning and estimating future growth
what is subjective forecasting?
Correct Answer -uses qualitative information based on human pinion and
insights not shown by hard data
what are the most common subjective techniques?
Correct Answer -- market surveys
- employee surveys
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller saraciousstuvia. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77333 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now