EMT Practice Test

1. Question Content...

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Question1: Which of the following would be an impact of low stock in the supply chain?
* Warehouse space would all be full with excess stock
* There may be delays and higher costs to fulfill supply
* Stock may not be available at times of high demand
* Lead times would reduce and purchase costs would fall

Question2: Which of the following is the correct statement about total ordering cost?

Question3: Which of the following is the Japanese word for 'billboard' or 'signboard'?

Question4: Which of the following are essential aspects that are required for the successful implementation of Just-In- Time (JIT)? SelectTWOthat apply.

Question5: What advantage can the use of ABC classification of stock provide in warehouse design?

Question6: Which of the following code systems is commonly used by governments as a basis for their Cus-toms tariffs and for the collection of international trade statistics?

Question7: Which of the following is a description of a distribution centre?

Question8: The only reason stocks become obsolete is because items have been held in stock for a very long time. Is this a valid statement?

Question9: The size of order that minimises the total cost of acquiring and holding stock is known as...

Question10: Radio Frequency Identification (RFID) is an electronic technology that transmits data from tagged items.
What are the advantages of RFID technology? SelectTWOthat apply.

Question11: A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock.
Safety stock can be used to accommodate which of the following?
1. Variability of stock turn
2. Variability of holding costs
3. Variability of demand
4. Variability of lead time

Question12: Which of the following statements is true?

Question13: In the periodic review system, the order quantity is the same for each order. Is this statement true?

Question14: In just in time production system, when is an upstream production triggered?

Question15: The following are examples of scheduled maintenance except...

Question16: A brewery sells its beer in aluminum cans. It recycles the cans by using contractors to collect and mold the used cans. This is an example of...?

Question17: A manufacturer has discovered that some of the stock in its storeroom is obsolete and now wishes to take the appropriate action.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?

Question18: A hospital is purchasing a new software product that will advise nurses when to give medications to hospitalised patients. This is a mobile application that will be used on tablets carried by the nurses. The software is being developed and tested by a company that specialises in mobile medical applications. This software will interface with existing hospital software that orders the medications from the pharmacy. Which acceptance test activity will be required to check whether the new software integrates well with current IT system?

Question19: An organisation might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure an outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?

Question20: 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?

Question21: Which is the best definition of reorder point?

Question22: 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

Question23: Which of the following is a forecasting technique?

Question24: Which of the following would be considered independent demand items of stock for a supplier that is manufacturing laboratory imaging equipment? SelectTWOthat apply.

Question25: A major investment bank is planning to purchase a complex banking system that will interface with multiple applications at varying times of the day. Before deploying the system, there are various levels of testing that must be performed through joint testing between the in-house team and off-shore testing consultants. The testing will be performed in a resource-constrained shared environment and managed by the on-shore development team. The costs for testing are generally classified as...?

Question26: Which of the following are subjective forecasting techniques? Select TWO that apply.

Question27: A company does not have enough space to hold inventory to satisfy an external foreign market. Therefore, the board of directors have decided that the company would buy stock in bulk and pay a fee for storage to a third- party warehouse provider local to the foreign market. This would allow the company to focus on other aspects of the business. The stock will be called off as and when required. Which of the following strategies is being pursued by this company?

Question28: Which of the following are recognised hidden costs associated with global sourcing?
* Quality control and nonconformance costs
* Increased lead times and inventory carrying costs
* Lower labour and wage costs
* Cost of tariffs and duties in supply chains

Question29: 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...?

Question30: Sidel Corp is a major food processor. It invested heavily on manufacturing facilities and processing machineries. Sidel's expenses on maintenance are exceptionally high. To minimise the total cost of maintenance, what should Sidel Corp do?

Question31: Which of the following is the core idea of Lean manufacturing?

Question32: Which of the following costs can be classified as 'acquisition costs'?
* Invitation to tender and order processing costs
* Invoice processing and supplier selection costs
* Goods inspection and total ownership cost
* Total input costs and invoice processing cost

Question33: Which of the following costs does the EOQ minimise?

Question34: In a manufacturing organisation, which of the following explains an 'indirect' stock classification of items?

Question35: Company XYZ is a candy manufacturer. Company XYZ makes a batch of 1,000 Christmas candy canes that are no longer edible after December 31. Company XYZ is able to sell 750 canes of the batch, but the other
250 are sitting in the warehouse. December 31 comes, and these candy canes is no longer sell-able. The batch of 250 candy canes belongs to which type of inventory?

Question36: A procurement manager has been asked to justify the purchase of a large piece of capital equipment valued at
£500,000 to internal stakeholders. The procurement manager decided to prepare the justification using a comprehensive formal business case due to the value of the purchase. Were they correct in doing this?

Question37: Decommissioning, removal and disposal of assets may have impact on the environment. An organisation should have policies and procedures in place to enhance its environmental performance. Which standard family provides the guidance on environmental policies and procedures?

Question38: Stockyards are suitable for specific materials with which of the following characteristics? SelectTWOthat apply.

Question39: Which of the following are main objectives of warehouse operations? Select TWO that apply.

Question40: A manager who is concerned about the environmental impact of packaging should do which of the following?

Question41: What term describes a method used to account for inventory, where the oldest produced items are recorded as sold first?

Question42: What is meant by the economic life of an asset?

Question43: "Open stock plus purchases minus closing stock" is the formula of which of the following?

Question44: The selection of the correct type of material handling equipment is important. If the width of the gangway between the racking in a warehouse is 2.4 meters (8 feet), what type of material handling equipment would be suitable?

Question45: XYZ Ltd is a highly profitable leading industrial distributor with over 60,000 products and an enviable record for customer service. After undertaking preliminary discussions it was decided to analyse the value-adding activities that contribute to XYZ's flagship products. The company is conducting which of the following activities?

Question46: RFID uses radio frequencies for the purpose of identification and tracking of assets. Which of the following are disadvantages of using RFID? SelectTHREEthat apply.

Question47: Which of the following are most likely to be the purposes of packing and packaging?
1. To bring the product cost down
2. To protect the product
3. To improve the product recognition
4. To test the product durability

Question48: Which of the following is a benefit of bar code scanning systems?

Question49: Hi-Tech Products Inc. (HTP) has just opened a new state-of-the-art distribution centre. It has invested heavily in new technology that will help manage, store, and identify stock items and their locations quickly and continuously. Its investment uses wireless technology. HTP will be using which of the following?

Question50: Do all types of warehouses require access to daylight to reduce the cost of electricity?

Question51: Which of the following are advantages for a purchasing organisation when adopting a leasing method of acquiring equipment?
* The initial purchase cost of the equipment is avoided
* The payments can be met from daily trading income
* The buyer can freely switch to newer technology whenever they wish
* The buyer is not responsible for any damage at the end of the contract

Question52: Which of the following are typical characteristics of 2D barcodes? Select TWO that apply.

Question53: A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days. What is the holding cost of this beer pallet?

Question54: Warehouse automation involves the use of technology to perform as many warehousing tasks as possible.
There are several benefits that can be gained by using automation in a warehouse. They are...

Question55: The width of aisles within a warehouse is determined by...?

Question56: ANTA Logistics is looking for a place to build a new, integrated cold chain facility, "Chill Hub", to its customers. Which of the following need to be considered when selecting the location of the new facility?
Select TWO that apply.

Question57: Buffer stock is a level of stock which...

Question58: A manufacturing organisation has a large volume of raw material stock now viewed as redundant. Which of the following is the most appropriate process for the organisation?

Question59: SpeedyCar GmbH is a vehicle manufacturer that is launching a new electric vehicle onto the market, replacing a previous diesel vehicle. There is a lot of equipment in the manufacturing site to be changed, some new machinery to replace older machinery, and some production equipment to decommission. The costs of decommissioning would include which of the following?

Question60: Which of the following are critical factors that must be considered when evaluating warehouse or storage locations?
* The cost of the proposed location
* Who owns the storage location or warehouse
* Access to transport networks
* The number of windows in the building

Question61: Bulk loose coal that requires massive handling system should be stored in which area?

Question62: Which of the following best describes the relationship between a service level and safety stock?

Question63: 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

Question64: One of the classifications of inventory is referred to as 'indirect supplies'. Which of the following items are examples of indirect supplies in a water bottling plant?
* Lubricants for maintenance of production machines
* Computer cartridges for the procurement office
* Reams of printed labels to stick on water bottles
* Blue-coloured plastic caps to seal the water bottles

Question65: 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

Question66: The optimum balance in the standard ISO 18602:2013 (Packaging and the environment - Optimi-zation of the packaging system) considers which of the following factors?
1. Environmental impact of losses due to lack of packaging
2. The process for packaging design, including material selection
3. Procedures and requirements for packaging that are suitable for organic recycling
4. Environmental impact of excess packaging

Question67: 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

Question68: When deciding on the storage facilities and locations, an organisation needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities.
Is this statement true?

Question69: Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply

Question70: To improve the security of a warehouse, alarm systems are commonly used. Which of the following is an important part of these systems?

Question71: Which of the following are likely to be included in a formal business case document for stakeholders to support the purchase of a new piece of specialist equipment?
* The conformance standard that relates to the future operation of the equipment
* The context of proposed purchase in relation to business strategy alignment
* Resource requirements including the managerial and operational team resources
* The planned preventative maintenance plan for the equipment to ensure effectiveness

Question72: Which component of an RFID device is responsible for sending and receiving radio waves?

Question73: Nuclear Energy Group Limited (NEG) has a number of investment options currently under appraisal. As these are all long-term investments (more than 30 years), NEG is adopting a total cost of ownership approach. It has gathered data on all associated costs over the life of the investment. Which of the following will be regarded as end-of-life costs?

Question74: A construction organisation requires specialist equipment for digging deep foundations. Which of the following circumstances would result in the hire of equipment rather than leasing it?

Question75: Which of the following is the character that allows the computer to verify whether a product code is entered correctly?

Question76: Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

Question77: Extra units that are held in inventory to reduce the risks of stock-out are called...?

Question78: Resevoir Inc runs several oil refineries across the country. These refineries require heavy invest-ment, particularly in maintenance, repair and operating (MRO) inventory. But the inventory turno-ver rate of these MRO items are low, while some items have expired date, which increases the risks of obsolescence. Which of the following methods can address the issues of these MRO items?

Question79: Which costs in the following list are categorised as operation costs in the total cost of ownership model?
Select TWO that apply.

Question80: What is meant by the economic life of an asset?

Question81: To make loading/unloading more effective and efficient, which feature should be included in vehi-cle dock design?

Question82: A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

Question83: Which of the following best describes the term 'periodic review'?

Question84: U-shape flow layout can utilise handling equipment if the high demands items locate adjacent to shipping docks. Is this statement true?

Question85: Lean principle focuses on eliminating eight types of waste. Waste in Lean manufacturing is defined as...?

Question86: Manufacturing resources planning (MRP II) was developed from material requirement planning (MRP).
Which of the following is the additional input that is available in MRP II but does not ap-pear in MRP?

Question87: Which of the following is the most suitable container of fasteners (screws, nails, nuts and bolts,...)?