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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
2 months 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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Alaine
1 days ago
I agree with you. It's important to keep track of these changes in inventory management to avoid any losses.
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Marylin
12 days ago
I think A and E are correct. Obsolescence occurs when the previous technology is replaced and the users no longer need the items.
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Ricki
1 months ago
User 2: I agree, those seem like the most fitting definitions for obsolescence.
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Carey
2 months ago
User 1: I think A and E are correct.
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Bok
2 months 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
2 months 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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Billy
23 days ago
Exactly, it's important to manage obsolescence in inventory to avoid excess stock.
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Soledad
24 days ago
So, obsolescence is when the previous technology has been replaced and the users no longer need the items.
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Shannan
2 months ago
I agree, C and D are more about decreased demand.
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Tomoko
2 months ago
I think A and E are the correct definitions for obsolescence.
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Sherron
2 months ago
I believe it could also be when the forecasts for the items have exceeded demand.
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Bethanie
2 months ago
I agree with that, and I also think it's when the usage of the items has decreased.
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Jeanice
2 months ago
I think obsolescence in inventory management is when the previous technology has been replaced.
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