L5M10 Practice Test Questions Answers Updated 91 Questions
L5M10 dumps & CIPS Level 5 Advanced Diploma in Procurement and Supply Sure Practice with 91 Questions
CIPS L5M10 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
NEW QUESTION # 52
The Supply Chain Module of an ERP (Enterprise Resource Planning) system would typically include which of the following elements? Select THREE.
- A. Customer relationship management
- B. Finance management
- C. Warehouse management
- D. Transport management
- E. Demand planning
Answer: C,D,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheSupply Chain modulewithin ERP systems managestransport,demand planning, andwarehouse operations. Other ERP modules handle finance and CRM separately.
(Reference: CIPS L5M10 Study Guide, ERP systems and supply chain integration, p. 73)
NEW QUESTION # 53
Supply Chain Management is an overarching term which includes several areas of a business. Which of the following are business processes which would fall under the concept of Supply Chain Management? Select THREE
- A. HR
- B. Procurement
- C. Innovation and Product Design
- D. Finance
- E. Logistics
Answer: B,C,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Supply chain management spans end-to-end value creation activities, includinginnovation/product development,procurement,logistics, operations and customer service. Support functions like HR and Finance are important enablers, but they are not core SC processes in this context. (CIPS L5M10 Study Guide, p. 3)
NEW QUESTION # 54
Which of the following areadvantages of using an ERP systemover an MRP system? Select TWO.
- A. Centralised databases
- B. System is multi-lingual
- C. No inputs are required
- D. Cheaper to implement
Answer: A,B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ERP extends the MRP concept across the whole enterprise. It centralises data (reducing duplication and error) and supports multiple languages and currencies for global operations. It is, however, more complex and costly to implement than MRP.
(Reference: CIPS L5M10 Study Guide, ERP evolution from MRP, pp. 175-176)
NEW QUESTION # 55
In transportation terminology, what type of cargo would be considered "less than carload" (LTC)?
- A. A shipment that fills half a rail carriage in volume
- B. Inventory that is worth less than the price of an average car
- C. A shipment that is less than a full truckload
- D. A small box of components that would fit on the back seat of a car
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
"Less than carload" refers to rail freight shipments smaller than a full railcar load (i.e., not filling an entire rail carriage). The term relates to railway "cars," not road vehicles. (Reference: CIPS L5M10 Study Guide, transport terminology-LTC/LCL/FTL, p. 6)
NEW QUESTION # 56
Which of the following are types of Auto-Identification and Data Capture (AIDC) technology used in logistics? Select THREE
- A. Barcodes
- B. Biometrics
- C. Voice recognition
- D. Smartphones
- E. Electronic data interchange
Answer: A,B,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AIDC encompasses technologies that automatically identify items and capture data with minimal human intervention. Examples include barcodes/QR, RFID, biometrics, magnetic stripes, and voice recognition.
Smartphones are devices that may host AIDC apps but are not a technology class themselves; EDI is a system- to-system messaging standard, not AIDC. (Reference: CIPS L5M10 Study Guide, AIDC overview and examples, p. 83)
NEW QUESTION # 57
Patrick wants a tool that can visually display information on planning, scheduling and track production activities within a distribution centre. Which would best suit his requirement?
- A. Critical Path
- B. Linear Programming
- C. Gantt Chart
- D. PERT Analysis
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AGantt chartvisually maps activities over time forplanning and scheduling, showing task durations, overlaps and progress tracking. Critical Path/PERT are network methods for project timing; linear programming is an optimisation technique. (CIPS L5M10 Study Guide, pp. 125-128)
NEW QUESTION # 58
PLM manages large distribution centres. Goods are not stored when delivered but are prepared immediately for shipment to retail outlets. What type of system is this?
- A. Pull-through distribution
- B. Distribution channelling
- C. Distribution resource planning
- D. Cross docking
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cross docking (XDK)involves transferring inbound goods directly to outbound transport without long-term storage, reducing handling, time, and warehousing costs. It requires tight coordination between transport and order schedules.
(Reference:CIPS L5M10 Study Guide, Cross docking and distribution centre operations, p. 24)
NEW QUESTION # 59
What is the name of the type of barcode that uses 12 numeric digits and is typically used for tracking items in store?
- A. QR Code
- B. PDF417
- C. Aztec Code
- D. UPC
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
UPC (Universal Product Code) is a linear barcode symbology using 12 numeric digits, widely used in retail point-of-sale and in-store item identification. QR, PDF417, and Aztec are different symbologies (2D or stacked) with different use cases and data capacities. (Reference: CIPS L5M10 Study Guide, Barcode types overview, pp. 75-76)
NEW QUESTION # 60
What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
- A. To save time
- B. To simplify billing
- C. To reduce costs
- D. To avoid import duty
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drop shippingdelivers goods directly from the manufacturer or wholesaler to the customer, bypassing retailer warehouses. This savestime(faster delivery) andcost(less handling and storage). Billing remains unchanged; import duty avoidance is not a design aim.
(Reference:CIPS L5M10 Study Guide, Customer fulfilment strategies, p. 7)
NEW QUESTION # 61
Which of the following areadvantagesof introducing a Materials Requirements Planning (MRP) system to a business? Select TWO.
- A. Better customer service
- B. Less time spent repairing machines
- C. Reduced inventory costs
- D. More agile supply chain
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRP systems synchronise material requirements with production schedules, reducing unnecessary inventory and ensuring timely delivery-thus improving customer service and reducing carrying costs. MRP does not directly enhance machine repair or agility (which are Lean/ERP benefits).
(Reference: CIPS L5M10 Study Guide, Advantages of MRP systems, p. 188)
NEW QUESTION # 62
Whether a company should implement a Lean or Agile supply chain should be considered as part of which organisational document?
- A. Operational plan
- B. Logistic plan
- C. Strategic plan
- D. Tactical plan
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ChoosingLean vs. Agileis a long-term, structural design decision and is addressed instrategic planning.
Tactical and operational plans translate strategy into mid- and short-term actions. (CIPS L5M10 Study Guide, p. 100)
NEW QUESTION # 63
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Government agencies
- B. Suppliers
- C. Drivers of logistics vehicles
- D. Banks and creditors
Answer: A,B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
External stakeholders in reverse logistics includesuppliers, who may receive returned goods or components, andgovernment agencies, who regulate waste handling, recycling, and environmental compliance. Banks and creditors are financial stakeholders, not operational ones, and logistics drivers are internal or connected stakeholders.
(Reference: CIPS L5M10 Study Guide, Reverse logistics stakeholders, p. 192)
NEW QUESTION # 64
Helmets Ltd produces hard hats. Which of the following sentences relates to the company'scapacity?
- A. Helmets Ltd employs 76 people
- B. Helmets Ltd turnover last year was £340,000
- C. Helmets Ltd produces 120 helmets per day
- D. Helmets Ltd requires machines to run 8 hours per day
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Capacity describes therateof output that can be produced under normal operating conditions (e.g., "120 helmets per day"). Headcount or machine hours are capacityinputs, not capacity measures.
(Reference: CIPS L5M10 Study Guide, Understanding capacity and throughput, pp. 134-135)
NEW QUESTION # 65
Invoice accuracy would affect which element of a company's balance sheet?
- A. Inventory
- B. Current liabilities
- C. Property, plant and equipment
- D. Receivables
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Receivables (debtors)represent money owed from customers. Incorrect invoicing affects these values and distorts reported working capital.
(Reference: CIPS L5M10 Study Guide, Financial impact of logistics, p. 67)
NEW QUESTION # 66
Strategic planning is long-term planning, usually over 5-10 years in the future. Is this sentence correct?
- A. Yes - the longer the strategic plan, the less detail it will include
- B. Yes - strategic plans have more detail than short-term plans
- C. No - long-term plans are tactical rather than strategic
- D. No - strategic plans detail the objectives of the organisation over the upcoming year
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Strategy deals with long-term direction and typically contains broad objectives with lower detail; tactical (mid- term) and operational (short-term) plans add specificity and detail. Therefore, longer-horizon strategic plans contain less operational detail than short-term plans. (Reference: CIPS L5M10 Study Guide, Planning horizons-strategic/tactical/operational, pp. 99-100)
NEW QUESTION # 67
Demand for a product can be classified as either dependent or independent. Which of the following companies produces adependent demanditem?
- A. An ice cream van operating from April to September
- B. An online clothing retailer
- C. A dairy farm producing organic milk
- D. A company that produces tyres for cars
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Dependent demandrefers to items whose demand is directly derived from another product's production-e.
g., tyres depend on car production volumes. In contrast, demand for end products such as ice cream or clothing isindependent, influenced by consumer behaviour rather than other production outputs.
(Reference:CIPS L5M10 Study Guide, Dependent vs. independent demand concepts, p. 114)
NEW QUESTION # 68
In an organisation that has implemented the Theory of Constraint in manufacturing, which of the following is true?
- A. Inventory is seen as an asset
- B. Inventory is held by the customer
- C. Inventory is seen as a liability
- D. Inventory is not held
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
WithinTOC,inventory is treated as a liability(it ties up cash and can hide flow problems), contrasting with traditional accounting that books inventory as an asset. (CIPS L5M10 Study Guide, pp. 141-142)
NEW QUESTION # 69
Jerry is a Supply Chain Manager at Barnacles Ltd. He wants a system that enhances integration with suppliers and allows joint visibility of inventory. Which system should he invest in?
- A. Six Sigma
- B. Collaborative Planning, Forecasting and Replenishment (CPFR)
- C. Data Warehousing
- D. Warehouse Management System
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
CPFRpromotescollaborative data sharingand joint visibility between supply chain partners, improving forecasting, replenishment, and inventory management accuracy. Data warehousing and WMS are internal systems; Six Sigma focuses on quality improvement, not collaboration.
(Reference:CIPS L5M10 Study Guide, CPFR systems and supply chain visibility, p. 5)
NEW QUESTION # 70
Green Frog Ltd is a consultancy with ~50 customers. The CEO plans to use a Cost-to-Serve (CTS) tool to understand customer profitability. Is this the right approach?
- A. Yes - Cost to Serve will allow identification of unprofitable customers
- B. No - all customers are equally profitable if they pay the same rates
- C. No - use Total Cost of Ownership (TCO) instead
- D. Yes - it is expensive but provides high visibility
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cost-to-Serve analyses end-to-end activities and resources consumed to serve specific customers or segments, exposing variation in profitability (e.g., delivery distance, visit frequency, handling complexity). It is appropriate for finding unprofitable customers. CTS is not inherently "expensive," and TCO focuses on lifecycle cost of acquiring/owning goods-not customer profitability. (Reference: CIPS L5M10 Study Guide, Cost-to-Serve concept and uses, p. 61)
NEW QUESTION # 71
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?
- A. Purchasing contract analysis
- B. Developing warehouse budgets
- C. Monitoring and controlling deliveries
- D. Quality control
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Distribution control focuses on transport execution and delivery performance-monitoring, expediting, and controlling outbound deliveries. Purchasing contract analysis belongs tosupply/procurement control; quality control to production/quality; and warehouse budgets to warehousing control. (Reference: CIPS L5M10 Study Guide, "Controlling activities by function," p. 109)
NEW QUESTION # 72
Which of the following scenarios would an MRP system struggle to cope with?
- A. Reducing inventory costs for the business
- B. Changes in requirements from customers
- C. Improving the response time to customer queries
- D. Changes in prices of raw materials
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRPassumes relatively stable, planned demand and lead times. It is less effective when there arefrequent late changes(e.g., sudden customer requirement changes), supplier delays, or machine breakdowns, because it is not inherently reactive in real time. (CIPS L5M10 Study Guide, p. 188)
NEW QUESTION # 73
The 'Drum, Buffer, Rope' technique helps to solve which issue in manufacturing?
- A. Fluctuations in prices
- B. Bottlenecks
- C. Poor forecasting
- D. Redundant inventory
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drum-Buffer-Rope (DBR) is a Theory of Constraints scheduling method designed to synchronise flow at the constraint("drum"), protect downstream operations with abuffer, and control release via therope. Its primary purpose is to manage and relievebottlenecksso overall throughput improves. (CIPS L5M10 Study Guide, p.
143)
NEW QUESTION # 74
Warehouse A has a Design Capacity that allows for 20 lorries to be unloaded per day. Which of the following is likely to be theEffective Capacityof the warehouse?
- A. Twice the Design Capacity
- B. Lower than the Design Capacity
- C. Higher than the Design Capacity if workers work to their full potential
- D. The same as the Design Capacity as this is determined by the layout of the warehouse
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Effective capacityis alwayslowerthandesign capacitydue to real-world losses (delays, staff absence, variability in unloading times). Design capacity reflects an ideal "perfect day." (CIPS L5M10 Study Guide, p.
108)
NEW QUESTION # 75
"Pick and Pack" is a warehouse management system (WMS) functionality detailing how items should be picked to fulfil customer orders. Which of the following are types of pick paths that can be programmed into a WMS? Select THREE
- A. Zone picking
- B. Batch picking
- C. Rotation picking
- D. Line picking
- E. Wave picking
Answer: A,B,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Common WMS pick-path/strategy types include zone picking (pickers confined to zones), wave picking (releasing picks in waves), and batch picking (multiple orders picked in one pass). "Line picking" and
"rotation picking" are not standard WMS pick-path terms in the context used here. (Reference: CIPS L5M10 Study Guide, WMS and "pick & pack" functions, p. 88; Inventory picking strategies, LO 1.1)
NEW QUESTION # 76
Systems which prevent issues that are likely to occur in the future, and which include preventative maintenance for machinery, are commonly known as what type of control system? Select TWO
- A. Preventative control
- B. Concurrent control
- C. Feedforward control
- D. Feedback control
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Feedforward (preventative) controlanticipates and prevents deviations before they occur (e.g., scheduled maintenance). This contrasts withconcurrent(controls during the activity) andfeedback(after-the-fact correction). (CIPS L5M10 Study Guide, pp. 101-102)
NEW QUESTION # 77
......
New L5M10 Exam Questions| Real L5M10 Dumps: https://troytec.dumpstorrent.com/L5M10-exam-prep.html