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CIPS Exam L4M7 Topic 8 Question 39 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 39
Topic #: 8
[All L4M7 Questions]

Which of the following statements represent a definition for 'obsolescence' in inventory management? Select TWO that apply.

Show Suggested Answer Hide Answer
Suggested Answer: D

A 'U' flow occurs when the goods receipt and dispatch functions are located at the same end of a warehouse building.

Products flow in at receiving, move in to storage in the back of the warehouse, and then to shipping, which is located at the adjacent to receiving on the same side of the building.

Items with higher throughput level are located closer to the loading bays. An example of a 'U' flow design can be seen in the diagram below.

Advantages of 'U' Flow

- Excellent utilization of dock resources because the receiving and shipping processes can share dock doors

- Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled

- Excellent lift truck utilization because put away and retrieval trips are easily combined and be-cause the storage locations closest to the receiving and shipping docks are natural locations to house fast moving items

- Yields excellent security because there is a single side of the building used for entry and exit


LO 1, AC 1.1

Contribute your Thoughts:

Billi
10 days ago
This is a tricky one! I'm leaning towards A and E, but I'm not 100% sure. Guess I'll have to double-check my notes on inventory management.
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Bok
12 days ago
Hmm, I think B could also be a valid answer. If the previous supplier is no longer available, that could lead to obsolescence as well.
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Barabara
19 days ago
A and E seem like the correct definitions for obsolescence. C and D are about decreased demand, not obsolescence itself.
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Tomoko
4 days ago
I think A and E are the correct definitions for obsolescence.
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Sherron
21 days ago
I believe it could also be when the forecasts for the items have exceeded demand.
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Bethanie
22 days ago
I agree with that, and I also think it's when the usage of the items has decreased.
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Jeanice
23 days ago
I think obsolescence in inventory management is when the previous technology has been replaced.
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