CIPS L5M7 Real Exam Questions Test Engine Dumps Training With 90 Questions
L5M7 Actual Questions Answers PDF 100% Cover Real Exam Questions
NEW QUESTION # 54
Which of the following is adisadvantageofJust-In-Time (JIT) Manufacturing?
- A. You cannot obtain economies of scale
- B. Inventories are wasteful and expensive
- C. It is expensive to implement
- D. There is less waste produced
Answer: A
Explanation:
JIT removes stockholding benefits, meaning firmslose economies of scalefrom bulk ordering. Each order is small and frequent.
Short cited term: "JIT limits bulk economies due to reduced inventory." (L5M7 Study Guide, p. 159) Reference:CIPS L5M7 Study Guide, p. 159.
NEW QUESTION # 55
Farmer Joe sells wheat and barley. He charges more when demand is high and less when demand falls. What pricing strategy does he follow?
- A. Flexible Pricing
- B. Variable Pricing
- C. Dynamic Pricing
- D. Competitive Pricing
Answer: C
Explanation:
Dynamic Pricingadjusts prices in real time to reflectmarket demand and supply conditions, commonly used in commodities.
Short cited term: "dynamic pricing - prices adjust to demand fluctuation." (L5M7 Study Guide, p. 189) Reference:CIPS L5M7 Study Guide, p. 189.
NEW QUESTION # 56
For items viewed asStrategic/Critical(high supply risk and high value), which sourcing strategy is best?
- A. Outsourcing
- B. Partnership or alliance approach
- C. Arm's-length relationship with supplier
- D. Competitive bidding
Answer: B
Explanation:
TheKraljic Matrixrecommendspartnership/alliancesfor strategic items to secure continuity, innovation, and joint value creation. Short cited term: "strategic items ... partnership" (L5M7 Study Guide, p.84).
Reference:CIPS L5M7 Study Guide, p.84.
NEW QUESTION # 57
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Higher costs
- B. Higher quality
- C. Less environmental impact
- D. Flexibility for support and maintenance
- E. Cheaper
Answer: C,D
Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.
NEW QUESTION # 58
Which of the following departments within an organisation form part of theValue Chain?
Select THREE.
- A. Operations
- B. Marketing
- C. Procurement
- D. Human Resources
- E. Logistics
Answer: A,B,E
Explanation:
According toMichael Porter's Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.
Short cited term: "primary activities - logistics, operations, marketing and sales" (L5M7 Study Guide, p. 76).
Reference:CIPS L5M7 Study Guide, p. 76.
NEW QUESTION # 59
Which approach to quality involvesmanufacturing only what is required, when it is required?
- A. Zero Defects
- B. Just-in-Time
- C. Total Quality Control
- D. Total Quality Management
Answer: B
Explanation:
Just-in-Time (JIT)manufacturing produces goodsonly when required, eliminating excess inventory and waste, ensuring smooth, efficient flow.
Short cited term: "make only what is needed, when needed" (L5M7 Study Guide, p. 30).
Reference:CIPS L5M7 Study Guide, p. 30.
NEW QUESTION # 60
Data needs to be collected, measured, and analysed to ensure quality in processes. Which of the following should the data be?
- A. Quick, Relevant, and Measurable
- B. Specific, Measurable, Achievable
- C. Achievable, Time-bound, and Qualitative
- D. Time-bound, Detailed, and Impartial
Answer: B
Explanation:
Effective quality measurement requiresSMART data-Specific,Measurable,Achievable,Relevant, and Time-bound-ensuring that data supports actionable improvement.
Short cited extract: "Data should be SMART to allow accurate performance analysis." (L5M7 Study Guide, p.
140)
Reference:CIPS L5M7 Study Guide, p.140.
NEW QUESTION # 61
Which industry is most likely to usesupplier tiering?
- A. Agriculture
- B. Finance
- C. Services
- D. Automotive
Answer: D
Explanation:
Theautomotive industryusessupplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.
Short cited extract: "Automotive sector commonly applies supplier-tier structures." (L5M7 Study Guide, p.
115)
Reference:CIPS L5M7 Study Guide, p. 115.
NEW QUESTION # 62
Which of the following isNOTan objective ofTotal Quality Management (TQM)?
- A. Meeting customer expectations
- B. Employee empowerment
- C. Financial planning
- D. Zero-defects
Answer: C
Explanation:
TQM objectives focus oncustomer satisfaction, zero defects, and employee engagement, not financial planning.
Short cited extract: "TQM aims: customer focus, zero defects, continuous improvement - not financial planning." (L5M7 Study Guide, p. 112) Reference:CIPS L5M7 Study Guide, p. 112.
NEW QUESTION # 63
In a typicalSupply Chain Quality Framework (SCQF), which of the following characteristics is likely to feature?
Select THREE.
- A. Information
- B. Procurement
- C. Marketing
- D. Sustainability
- E. Continuous Improvement
Answer: A,D,E
Explanation:
TheSCQFintegrates factors that promote long-term excellence across the chain:leadership, stakeholder commitment, sustainability, information management, and continuous improvement. These underpin effective quality and performance.
Short cited term: "key features include sustainability, information and continuous improvement." (L5M7 Study Guide, p. 34) Reference:CIPS L5M7 Study Guide, p. 34.
NEW QUESTION # 64
Kerry is a new department manager at XYZ Ltd. The company has several manufacturing divisions that serve different market segments. She is considering introducingTotal Quality Management (TQM)only in her division. Is this a good idea?
- A. No - TQM is a holistic approach and should be implemented company-wide
- B. Yes - TQM will ensure her division outperforms the other divisions
- C. Yes - staff will respond positively to the change
- D. No - TQM is not suitable in a manufacturing company
Answer: A
Explanation:
TQM is aholisticphilosophy requiringorganisation-wideadoption and leadership commitment; partial
/isolated adoption undermines results. Short cited terms: "holistic," "organisation-wide commitment" (L5M7 Study Guide, p.118).
Reference:CIPS L5M7 Study Guide, p.118.
NEW QUESTION # 65
In a typical supply chain, in which direction doesvalue-addtravel?
- A. From the first supplier to the customer
- B. From the OEM to the retailer
- C. From the customer to the distributor
- D. From the retailer to the supplier
Answer: A
Explanation:
Value flowsdownstream, originating with suppliers and moving toward the end customer. A typical chain is tiered suppliers # OEM/producer # distributors/retailers # customer. Short cited term: "value moves downstream" (L5M7 Study Guide, p.4).
Reference:CIPS L5M7 Study Guide, p.4.
NEW QUESTION # 66
Which of the following is an example ofVariable Pricing?
- A. A cleaning firm charges more when demand increases.
- B. A retailer holds a January sale.
- C. A restaurant offers student discounts.
- D. A wholesaler offers a discount when a customer buys more than 100 units.
Answer: D
Explanation:
Variable Pricingchanges the unit price based onquantity purchased; larger volumes trigger discounts.
Short cited term: "price varies with quantity ordered." (L5M7 Study Guide, pp. 188-191) Reference:CIPS L5M7 Study Guide, pp. 188-191.
NEW QUESTION # 67
Which of the following can have adetrimental effecton supply-chain relationships?Select TWO.
- A. Mistrust
- B. Low spend
- C. Lack of feedback
- D. Market segment
Answer: A,C
Explanation:
Relationship effectiveness is damaged bymistrustand poorfeedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: "trust," "communication/feedback" (L5M7 Study Guide, p.93).
Reference:CIPS L5M7 Study Guide, p.93.
NEW QUESTION # 68
In supply-chain management, isculturea relevant consideration?
- A. No - culture is impossible to define and should not be a consideration
- B. No - it does not matter what the culture of the supply chain is
- C. Yes - understanding culture helps achieve collaboration between organisations
- D. Yes - culture determines whether you wish to work with a supplier or not
Answer: C
Explanation:
Understandingorganisational and national culturesupports collaboration, communication, and innovation across the chain. Cultural awareness enables smoother partnerships and shared values.
Short cited extract: "Cultural understanding assists collaboration and trust within supply-chain relationships.
" (L5M7 Study Guide, pp. 58-59)
Reference:CIPS L5M7 Study Guide, pp. 58-59.
NEW QUESTION # 69
To analyse thevalue of inventory held, which data points must be collected? Select TWO.
- A. Number of items sold
- B. Purchase price
- C. Expiry date
- D. Number of items held in storage
Answer: B,D
Explanation:
Inventory valuation requires data onquantity in stockandunit purchase cost. These determine the total inventory value at any given time.
Short cited extract: "Inventory value = number of items × purchase cost." (L5M7 Study Guide, p.147) Reference:CIPS L5M7 Study Guide, p.147.
NEW QUESTION # 70
Deborah discovers her company uses amulti-sourcing strategy. Which could be a reason for this?
- A. It maintains competition between suppliers
- B. It provides flexibility to suppliers
- C. It shows loyalty to the supplier
- D. It ensures prices are low
Answer: A
Explanation:
Multi-sourcingmaintainscompetitionand reduces dependency, promoting better pricing and performance from suppliers.
Short cited extract: "Multi-sourcing maintains competitive tension between suppliers." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.
NEW QUESTION # 71
Tom, a Procurement Manager, is initiating aSupplier Rationalisationproject. What should he completefirstto direct the project?
- A. Conduct SWOT Analysis
- B. Perform Spend Analysis
- C. Introduce Six Sigma
- D. Implement Total Quality Management
Answer: B
Explanation:
ASpend Analysisidentifies where money is spent and with which suppliers-vital to determine consolidation opportunities before rationalising the base.
Short cited term: "spend analysis precedes supplier rationalisation." (L5M7 Study Guide, p. 203) Reference:CIPS L5M7 Study Guide, p. 203.
NEW QUESTION # 72
Sandy has been asked to collectprimary dataon manufacturing defects and their effect on profits. She decides to send aquestionnaireto staff. Is this correct?
- A. No - she should research online about defaults
- B. No - a questionnaire will not provide useful information
- C. Yes - a questionnaire is a form of primary data
- D. Yes - staff will know all the answers
Answer: C
Explanation:
Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy's approach aligns with primary data collection methods.
Short cited extract: "Primary data: original research such as questionnaires and interviews." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 73
Which of the following describes anAdhocracyorganisational structure? Select TWO.
- A. Highly documented routine processes
- B. Has a vertical structure where managers maintain control
- C. Low levels of centralisation
- D. Highly formalised structure
- E. Can respond quickly to change
Answer: C,E
Explanation:
Anadhocracyisflexible,decentralised, and able torespond rapidlyto change, though it may lack formal control systems.
Short cited term: "low formalisation, high adaptability" (L5M7 Study Guide, p. 64).
Reference:CIPS L5M7 Study Guide, p. 64.
NEW QUESTION # 74
RIDDORstatistics provide information on which of the following?
- A. Health and safety
- B. Speed of production
- C. Financial standing
- D. Conformance with specification
Answer: A
Explanation:
RIDDOR(Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) relates tohealth and safetyperformance measurement-tracking workplace incidents and compliance.
Short cited extract: "RIDDOR statistics relate to health and safety reporting." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 75
Which of the following is an example of aCapital Expenditurefor a private healthcare facility?
- A. Cleaning Products
- B. Medicine
- C. Nurse's Salary
- D. MRI Machine
Answer: D
Explanation:
Capital expenditure (CapEx)coverslong-term investmentssuch as equipment or infrastructure that deliver value over time-e.g., MRI scanners. Operating costs (OpEx) include salaries and consumables.
Short cited extract: "CapEx - major assets and equipment; OpEx - running costs such as wages." (L5M7 Study Guide, Domain 3.2) Reference:CIPS L5M7 Study Guide, Domain 3.2.
NEW QUESTION # 76
ACost Leaderis able to lower the price of an item or material within the marketplace. Is this true?
- A. No - a cost leader holds the largest market share and never reduces prices
- B. No - a cost leader has no influence on market price
- C. Yes - they set a price standard as well as lowering prices
- D. Yes - they are able to lower prices but not increase them
Answer: C
Explanation:
ACost Leaderdetermines the market price standard and can influence both price reductions and increases.
Their efficiency allows them to lead pricing trends.
Short cited term: "cost leader sets price standard in market." (L5M7 Study Guide, p. 179) Reference:CIPS L5M7 Study Guide, p. 179.
NEW QUESTION # 77
A strategy in which an organisation concentrates its resources on anarrow market or industry segmentis which ofPorter's Generic Strategies?
- A. Cost Certainty
- B. Differentiation
- C. Focus
- D. Cost Leadership
Answer: C
Explanation:
Porter'sFocus Strategyinvolvestargeting a niche marketto meet unique needs better than competitors.
Short cited term: "focus - targeting a narrow market segment" (L5M7 Study Guide, p. 52).
Reference:CIPS L5M7 Study Guide, p. 52.
NEW QUESTION # 78
What is the name of the phenomenon in which a small change in consumer demand can have an amplified effect throughout the supply chain?
- A. Pareto Principle
- B. Bullwhip Effect
- C. Amplification Concept
- D. Supply and Demand
Answer: B
Explanation:
The study guide describes how demand variabilityamplifies upstreamin the chain-commonly termed the
"bullwhip effect."This is introduced when explaining basic supply-chain dynamics and flows. Short extract: " demand changes become amplified upstream (bullwhip effect)." (L5M7 Study Guide, p.4) Reference:L5M7 Study Guide, p.4.
NEW QUESTION # 79
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