CIPS Exam L4M7 Topic 12 Question 5 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 5
Topic #: 12

Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method: First, the customers make orders, then it will decide which components to be pur-chased according to the bill of materials. These components are known as which of the following?

AIndirect items

BCapital goods

CDependent demand items

DIndependent forecast items

Show Suggested Answer

Suggested Answer: C

Dependent demand is the requirement for stock item which is directly related to and therefore de-pendent upon the rate of production (examples are: raw materials, components, energy). The com-ponents in the scenario are dependent demand items.

Independent demand is the requirement for stock item which is not directly related to, and is therefore independent of rate of production.

LO 2, AC 2.1

by Louisa at Oct 12, 2022, 07:18 AM

Limited Time Offer

25%

Off

Get Premium L4M7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!