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CIPS Exam L4M7 Topic 3 Question 27 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 27
Topic #: 3
[All L4M7 Questions]

Your employers have expanded rapidly over the past five years and have acquired a number of smaller companies in the same industry. Unfortunately, all of the companies purchased have manual inventory systems. Your employer is setting up a computerised inventory control system and wishes to ensure that all stock is classified under the appropriate headings. Under what classification would semi-finished goods be classified?

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Suggested 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

Contribute your Thoughts:

Cathrine
30 days ago
This question is driving me nuts! I'm going to guess and hope for the best. Maybe I can bribe the exam proctor with some semi-finished cookies I have lying around.
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Micah
2 days ago
I believe it's D) Material costs
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Devora
5 days ago
C) Acquisition costs
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Yolando
10 days ago
I think it's B) Direct inventories
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Myrtie
18 days ago
A) Indirect inventories
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Dona
1 months ago
D) Material costs, hands down. Semi-finished goods are just raw materials that haven't been fully processed yet. Easy peasy!
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Crissy
1 months ago
I'm going with C) Acquisition costs. I mean, the company acquired these smaller businesses, so the semi-finished goods must be part of the acquisition costs, right? *scratches head*
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Glynda
2 days ago
C) Acquisition costs
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Mireya
3 days ago
B) Direct inventories
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Haley
14 days ago
A) Indirect inventories
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Tiera
1 months ago
Hmm, I'm not sure. Is it possible that semi-finished goods could be classified as indirect inventories? This seems like a tricky one.
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Benedict
19 days ago
B) Direct inventories
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Micaela
23 days ago
I think semi-finished goods could be classified as indirect inventories.
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Trina
1 months ago
A) Indirect inventories
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Buck
2 months ago
I think the answer is B) Direct inventories. Semi-finished goods are part of the main production process, so they should be classified as direct inventories.
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Irene
23 days ago
Direct inventories would be the most appropriate classification for semi-finished goods.
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Kiley
1 months ago
Yes, I think it makes sense to classify them as direct inventories.
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Rikki
1 months ago
I agree, semi-finished goods are directly related to the production process.
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Frankie
2 months ago
I think semi-finished goods would fall under acquisition costs, as they are part of the overall cost of acquiring inventory.
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Kenneth
2 months ago
I disagree, I believe semi-finished goods should be classified under material costs.
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Laticia
2 months ago
I think semi-finished goods would be classified under direct inventories.
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