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
What cost factors should be considered for the maintenance and repair of manufacturing equipment?
Direct labor cost
Cost of utilities during the use of the equipment
Cost of the goods being sold
Guarantee and warranty cost
Maintenance and repair costs include:
Direct labor: Expenses for personnel performing maintenance tasks.
Warranty costs: Expenses associated with warranty obligations or repairs within the warranty period.
These costs are part of whole-life asset management, which aims to accurately budget for and manage ongoing equipment expenses.
Which of the following factors influence stock-holding policy for slow-moving items?
Item cost
Surplus cost
Shortage cost
Lead time
Which one of the following statements is true about radio frequency identification (RFID)?
Radio frequency identification (RFID) are items which use radio technology to identify itself and its location subject to having appropriate hardware and software.
RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate.
A RFID Reader is a device that uses radio-frequency waves to wirelessly transfer data between itself and a RFID tag/label in order to identify, categorize and track assets. When combined with the right RFID software, a RFID reader can identify objects quicker, more accurately, at a reduced overall cost, and at various points of the object's lifecycle.
Passive RFID systems use tags with no internal power source and instead are powered by the electromagnetic energy transmitted from an RFID reader. Passive RFID tags are used for applica-tions such as access control, file tracking, race timing, supply chain management, smart labels, and more.
Active RFID systems have three essential parts -- a reader or interrogator, antenna, and a tag. Ac-tive RFID tags possess their own power source -- an internal battery that enables them to have ex-tremely long read ranges as well as large memory banks.
LO 1, AC 1.2
XYZ Ltd organises a meeting in order to decide on the safety stock level of a strategic material which is used in XYZ latest product - DMD. To do this, they must forecast the future demand for this new product. In the meeting, external consultants are invited to join with cross-functional team. Each person of the group anonymously replies to questionnaires and subsequently receives feedback in the form of a statistical representation of the "group response," after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. XYZ Ltd is using which forecasting method?
Delphi method was developed in the 1950s, originally to forecast the impact of technology on warfare. The method entails a group of experts who anonymously reply to questionnaires and subsequently receive feedback in the form of a statistical representation of the 'group response,' after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. The Delphi Method has been widely adopted and is still in use today. Delphi method is a subjective forecasting technique
Holt-Winters forecasting is a way to model and predict the behavior of a sequence of values over time---a time series. Holt-Winters is one of the most popular forecasting techniques for time series. It's decades old, but it's still ubiquitous in many applications, including monitoring, where it's used for purposes such as anomaly detection and capacity planning.
Time series analysis is a statistical technique that deals with time series data, or trend analysis. Time series data means that data is in a series of particular time periods or intervals.
Objective forecasting approaches are quantitative in nature and lend themselves well to an abun-dance of data. There are three categories of objective forecasting methods: time series, caus-al/econometric, and artificial intelligence.
LO 2, AC 2.3
