L4M7 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Buffer stock

Work-in-progress

Opening stock

Closing stock

The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

Parts must arrive where they are needed, when they are needed, and in the exact quantity needed

All parts arriving must be of a quality standard which is usable and free from defects

The cost of carrying increased parts inventory to meet customer demand is transferred to the customer

Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

1 and 2 only

2 and 5 only

3 and 4 only

2 and 4 only

Obsolescent stock is in short supply; redundant stock has no current supplier with stock available

Obsolescent stock is damaged goods that need returning to suppliers; redundant stock is no longer stocked by the organisation

Obsolescent stock has been updated by another item but can still be used; redundant stock is no longer used by an organisation

Obsolescent stock has been supplied by a failed supplier; redundant stock requires quality testing before use