The primary consideration In maintenance, repair, and operating (MRO) supply systems typically is:
Correct Answer: B
Maintenance, repair, and operating (MRO) supply systems are essential for ensuring the availability and reliability of equipment and infrastructure used in production processes. MRO supplies include items such as spare parts, tools, lubricants, cleaning materials, and safety equipment. The primary consideration in MRO supply systems typically is stockout costs, which are the costs incurred when an item is not available when needed. Stockouts can cause production delays, equipment breakdowns, customer dissatisfaction, and lost sales opportunities. Therefore, it is important to maintain adequate inventory levels of MRO supplies to avoid stockouts and ensure uninterrupted operations. Order quantity, carrying costs, and shelf life are also important factors in MRO supply systems, but they are not the primary consideration. Order quantity is the amount of MRO supplies ordered at a time, which affects the ordering costs and the inventory levels. Carrying costs are the costs of holding MRO supplies in inventory, which include storage, handling, insurance, and obsolescence costs. Shelf life is the period of time that MRO supplies can be stored before they expire or deteriorate, which affects the inventory turnover and the waste disposal costs. These factors need to be balanced with the stockout costs to optimize the MRO supply systems. References: CPIM Part 2 Study Guide, Chapter 6: Inventory Management, Section 6.3: Inventory Management for Independent Demand Items What is maintenance, repair and operations | IBM, Section: Why should you care about MRO? Maintenance, Repair, and Operations/Overhaul (MRO) - A Complete Guide, Section: Understanding MRO
Question 82
Based on the values reported in the table below, what is the inventory turnover?
Correct Answer: C
Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover indicates a more efficient use of inventory, while a lower turnover implies excess inventory or poor sales1. Based on the values reported in the table, we can calculate the inventory turnover as follows: Inventory Turnover = COGS / Average Inventory Value = $260,000 / $150,000 = 1.73 Therefore, the correct answer is C. References := 1 Inventory Turnover - How to Calculate Inventory Turns2
Question 83
An Information Technology (IT) professional is seeking a control objective framework that is widely accepted around the world and focuses specifically on information security controls. Which of the following frameworks BEST meets this need?
Correct Answer: B
Question 84
Which of the following terms below BEST describes the measure of confidence that the security features, practices, procedures, and architecture of an information system accurately mediates and enforces security policy?
Correct Answer: B
Question 85
What is the BEST reason to include a Hardware Security Module (HSM) in the key management system when securing cloud storage?
