[Apr 27, 2026] DumpsTorrent L4M7 dumps & Level 4 Diploma in Procurement and Supply sure practice dumps
CIPS L4M7 Actual Questions and Braindumps
To prepare for the CIPS L4M7 certification exam, professionals can take advantage of a range of training and study resources. These resources are designed to support professionals in their preparation for the exam, and to ensure that they have a thorough understanding of the topics covered. These resources include study guides, online courses, and practice exams, as well as access to a community of professionals who have already passed the exam.
The CIPS L4M7 exam is comprehensive and covers a wide range of topics, including financial analysis, sustainability, and risk management. It requires a high level of dedication and commitment from candidates, but the rewards are well worth the effort. L4M7 exam is an excellent opportunity for asset management professionals to demonstrate their expertise and advance their careers.
NEW QUESTION # 70
Which of the following are advantages of a multi-story warehouse compared to a single-story warehouse?
* Heavier, frequently moved items will always be stored on the upper floor of a multi-story warehouse
* Order tracking technology is more effective and efficient in a multi-story warehouse
* There are more options for the storage of inventory by volume, weight, and frequency of movement in a multi-story warehouse
* The cost of land is likely to be less for a multi-story warehouse compared to a single-story warehouse for a similar product volume
- A. 2 and 3 only
- B. 1 and 2 only
- C. 3 and 4 only
- D. 1 and 4 only
Answer: C
NEW QUESTION # 71
XYZ Inc opens a tender to purchase new forklift trucks for their new established warehouse. In the final round, there are two suppliers remain who offer two different bids. Supplier A's bid has high initial investment. After calculating the net present value, the NPV in year five is positive. On the other hand, supplier B's bid has low purchase price, with the NPV in year five is negative. If the NPV is the sole selection criterion, XYZ Inc should select the bid which has...?
- A. The lowest NPV
- B. Zero NPV
- C. Negative NPV
- D. Positive NPV
Answer: D
Explanation:
Net present value (NPV) is the 'today' net value that deprives from 'future' cash flow of an invest-ment or a capital purchase. Net Present Value is a helpful tool for assessing the total lifetime value of an investment.
Procurement professionals or investors can base on this value to make decision to achieve value for money.
Generally, an organisation should select the offer which has the highest NPV among their options. Preferably, the NPV of an capital investment should be positive, which means the investment eventually adds value to the business.
Reference: CIPS study guide page 177
LO 3, AC 3.2
NEW QUESTION # 72
The chief procurement officer (CPO) of TL Communications Ltd is preparing a tender document for a two year cleaning services contract. The CPO has decided that the tender will be awarded on a fixed price. What is the advantage of using a fixed price for the contract?
- A. It is always the best pricing method for both the buyer and the supplier
- B. It is the best method for limiting underpricing and overpricing risks
- C. It ensures that the cost is known and will not change over the stated period
- D. It gives an opportunity to negotiate bulk discounts
Answer: C
NEW QUESTION # 73
Which of the following is essential to effective implementation of just-in-time?
- A. Larger warehouse for larger amount of inventory
- B. No need for smoothing production
- C. Strong links between the suppliers and the buying organisation
- D. Regular machine changeovers
Answer: C
Explanation:
For JIT manufacturing to succeed, companies must have steady production, high-quality workmanship, glitch-free plant machinery, and reliable suppliers.
JIT production systems cut inventory costs because manufacturers do not have to pay storage costs. Manufacturers are also not left with unwanted inventory if an order is canceled or not fulfilled.
Reference:
- Just in Time (JIT)
- CIPS study guide page 122-124
LO 2, AC 2.3
NEW QUESTION # 74
Which of the following best describe the function of MRP?
- A. Planning and controlling of production and inventory
- B. Planning and monitoring of inventory resources
- C. Planning and controlling of production and finance
- D. Planning and monitoring of production resources only
Answer: A
Explanation:
Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.
MRP process is described in the graph below:
Reference:
LO 2, AC 2.3
NEW QUESTION # 75
An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright?
* Capital allowances may be set against tax, and grants may be available
* There is no initial investment which would tie up the organisation's working capital
* It would protect against technological obsolescence as equipment can be replaced as required
* The total cost may be higher than purchasing the equipment outright
- A. 3 and 4 only
- B. 2 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: C
Explanation:
Leasing offers several advantages in procurement, particularly in high-value asset management:
* No initial investment: Leasing eliminates the need for a significant upfront capital outlay, preserving working capital for other purposes.
* Protection against obsolescence: Leasing agreements often allow organizations to upgrade equipment, thus mitigating risks related to technology becoming outdated.
While capital allowances (option 1) may be relevant in purchases, they do not apply to the leasing advantage.
Option 4, highlighting the total cost, is typically a disadvantage of leasing, not an advantage, as leasing can be more costly over time compared to an outright purchase.
NEW QUESTION # 76
Zemora Clothing Inc. receives high-priced garments with devices hidden inside the lining to avoid possible fraudulent removal from the shop. These tags are activated upon arrival at stores, and security alerts are triggered if a garment is removed or taken out of the store without payment. Which of the following order tracking technology is used by this company?
- A. Electronic data interchange
- B. Bar coding system
- C. Radio frequency identification
- D. Electronic resource planning
Answer: C
Explanation:
Radio Frequency Identification (RFID) enables real-time tracking of items and is commonly used for security in retail to prevent theft. The tags are activated within a specified range, and alarms trigger when items exit without deactivation. RFID in asset management helps in tracking high-value items, ensuring security and reducing loss.
NEW QUESTION # 77
XYZ Ltd is a retailer in the US. Their customers' demand for Thanksgiving and Christmas decora-tions usually rises in the end of the year. This irregular demand results in more required storage space for finished goods during peak seasons. Which of the following are possible solutions for dealing with required additional space?
1. Maximising aisle width
2. Keeping high buffer stock throughout the year
3. Maximising flexibility in warehouse layout
4. Installing mezzanine floor
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 3 and 4 only
Answer: D
Explanation:
Possible solutions to the high irregular or seasonal demand problems are listed below:
* Take advantage of the height of the warehouse
- Mezzanine floor
- High racking system (increase storage capacity but require high-reach material handling equip-ment)
* Eliminate dead stock or inventory
* Improve material flow
* Improve storage location method
* Consider using aisle space during demand peak
* Narrow aisles between racks (require narrow handling equipment)
* Carousel-type storage system
* Auto-storage and retrievals system (ASRS)
NEW QUESTION # 78
Which of the following statements is true of just-in-time (JIT) purchasing?
- A. Only disadvantage of JIT purchasing is the higher level carrying and inspection costs
- B. JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs
- C. In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs
- D. In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales
Answer: D
Explanation:
Just-in-time (JIT) purchasing is a systems approach for developing and operating the purchasing function. JIT purchasing along with the total quality management in many industries has been suc-cessful in reducing inventory and increasing the overall effectiveness of purchasing function and hence the productivity of manufacturing.
The just-in-time objectives of eliminating waste can be summarised in the 'five zeros: zero defects, zero set-up times, zero inventories, zero handling and zero lead times.
The correct answer should be 'In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales' because it expresses that upstream activity (purchasing) only occurs as the downstream activity (production or sales) triggers.
Reference: CIPS study guide page 122-127
LO 2, AC 2.3
NEW QUESTION # 79
Jack is the inventory manager of XYZ Ltd. a retail chain business operating in ten locations nationally. Jack is contemplating changing the inventory systems from barcoding to radio frequency identification otherwise referred to as RFID.
However, it Is unclear to Jack what the challenges this new system might present Which one of the following is a disadvantage of an RFID system?
- A. It is labour intensive as it requires a direct line-of-sight to the product tags
- B. It can only be used on bulky metal products held in storage
- C. It can cause reader collision from two simultaneous tags in the same area
- D. It only operates on clear barcodes and not ones that are faded or damaged
Answer: B
NEW QUESTION # 80
What is the difference between fixed and variable costs?
- A. Fixed costs do vary with the volume of business Variable costs do not vary with the volume of business
- B. Fixed costs do not vary with the volume of business. Variable costs do vary with the volume of business
- C. Variable costs include items such as building rental and insurance costs while fixed costs do not
- D. Fixed costs include items such as labour overtime and direct materials while variable costs do not
Answer: B
NEW QUESTION # 81
Which of the following is the cylindrical container that is suitable for liquids or loose material
- A. Industrial container
- B. Drum
- C. Tote box
- D. Storage bag
Answer: B
Explanation:
Drum is the container for stock, which is usually cylindrical and can be made from a variety of materials.
Contents are usually loose material or liquids
A picture containing tableware, kitchen appliance Description automatically generated
Tote box is the reusable storage box. These can be open or have lids or flaps to close them and come in a large variety of sizes and weight loadings.
A tote is ideal for holding and hauling items such as: tools, fasteners, bark dust, dry cement, cords, wires, smaller boxes,...
For larger and bulkier items, industrial containers make it easy to keep things stored and in one spot for transportation. Due to the metal interior, an industrial container is more appropriate for items that - unlike tools and small pieces of machinery - lack any surface sensitivity.
Solid containers like bins and totes are far from the only storage devices for the various materials that are needed in abundance at factories and warehouses. Another option is the storage bag, which can be used to hold bulk supplies of items until they're needed for the department shelves or assembly lines.
LO 1, AC 1.1
NEW QUESTION # 82
Which of the following is the most suitable container of fasteners (screws, nails, nuts and bolts,...)?
- A. Bar rack
- B. Pallet
- C. Tote box
- D. Stock cage
Answer: C
Explanation:
Tote box is the reusable storage box. These can be open or have lids or flaps to close them and come in a large variety of sizes and weight loadings.
A tote is ideal for holding and hauling items such as: tools, fasteners, bark dust, dry cement, cords, wires, smaller boxes,...
Pallets are the platform structures designed to support a load and be lifted using the forks (typically seen on forklift trucks and other equipment). These are in a variety of standard sizes and can be made of many materials including plastics, resin, board or timber. Pallets are not containers, but support platforms.
Bar racks are designed to store bars and pipes
Stock cages are available in many sizes and can hold single items or groups of items
Reference:
LO 1, AC 1.1
NEW QUESTION # 83
Which of the following are the different types of inventory that a manufacturing company usually has?
1. Work in progress
2. Economic order quantity
3. Raw materials
4. Finished goods
- A. 1, 3 and 4
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 2, 3 and 4
Answer: A
Explanation:
The normal breakdown in a manufacturing organisation would be raw materials, components, work in progress and finished goods.
Following are the different types of inventory:
Raw materials are the basic materials that a manufacturing company buys from its suppliers, and that is used by the former to convert them into the final products by applying a set of manufacturing processes. For example, aluminum scrap is the raw material for a company that produces aluminum ingots. Flour is the raw material for a company that produces bread or pizza. Similarly, metal parts and ingots are the raw materials bought by a company that manufactures cars, and crude oil is the raw material for an oil refinery.
Work in progress inventory can also be called semi-finished goods. They are the raw materials that have been taken out of the raw materials store and are now undergoing the process of their conversion into the final products. These are the partly processed raw materials lying on the production floor. And they have also not reached the stage where they have been converted into the final product.
Finished goods are indeed the final products obtained after the application of the manufacturing processes on the raw materials and the semi-finished goods discussed above in the article. They are saleable, and their sale contributes fully to the revenue from the core operations of the company.
Reference:
- Types of Inventory
- CIPS study guide page 82-83
LO 2, AC 2.1
NEW QUESTION # 84
Which component of an RFID device is responsible for sending and receiving radio waves?
- A. Network database
- B. Laser beam
- C. Integrated circuit
- D. Antenna
Answer: D
Explanation:
RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate. RFID Antennas are necessary elements in an RFID system be-cause they convert the RFID reader's signal into RF waves that can be picked up by RFID tags. Without some type of RFID antenna, whether integrated or stand-alone, the RFID reader cannot properly send and receive signals to RFID tags.
NEW QUESTION # 85
Stock redundancies can be avoided in all situations if managers ensure that all items are purchased more frequently in small quantities. Is this statement TRUE?
- A. Yes, because receiving stock items in many small quantities reduces acquisition costs
- B. No, because increased frequency of purchases will increase stock levels and the risk of redundancy
- C. Yes, because it is sensible to purchase all types of stock items in small quantities
- D. No, because redundancy may be a result of changes in demand due to other unavoidable causes
Answer: D
NEW QUESTION # 86
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CIPS L4M7 exam is a challenging and comprehensive test that requires a deep understanding of asset management principles and practices. As such, candidates must have a solid understanding of asset management principles and practices to pass the exam. L4M7 exam is ideal for professionals who work in the field of asset management, including asset managers, maintenance managers, and project managers. It is also suitable for individuals who are looking to start a career in asset management or to enhance their existing skills and knowledge in this field. Passing the CIPS L4M7 exam is a significant achievement that can help professionals to advance their careers and to demonstrate their expertise in asset management.
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