Unique Top-selling L5M10 Exams - New 2025 CIPS Pratice Exam
CIPS Level 5 Advanced Diploma in Procurement and Supply Dumps L5M10 Exam for Full Questions - Exam Study Guide
NEW QUESTION # 18
In which of the following circumstances does the usual 14-day cooling-off periodnotapply? Select THREE.
- A. Buying train tickets
- B. Items covered by warranty (e.g., electrical goods)
- C. Made-to-order items (e.g., personalised T-shirts)
- D. Online digital content where the buyer has begun downloading
- E. Hiring a consultant
Answer: A,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Consumer protection regulations exclude cancellation rights for:
* Transport tickets (e.g., train, flights)
* Bespoke or personalised goods
* Digital downloads where the buyer has begun accessing the content
(Reference:CIPS L5M10 Study Guide, "Cooling-off periods and exceptions," p. 200)
NEW QUESTION # 19
Strategic planning is long-term planning, usually over 5-10 years in the future. Is this sentence correct?
- A. No - strategic plans detail the objectives of the organisation over the upcoming year
- B. Yes - the longer the strategic plan, the less detail it will include
- C. Yes - strategic plans have more detail than short-term plans
- D. No - long-term plans are tactical rather than strategic
Answer: B
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 # 20
The return logistics of consumable goods is more difficult and complex. Which of the following is an example of a consumable good?
- A. An item out of warranty
- B. An item used shortly after purchase, such as petrol
- C. Kitchen equipment used in food preparation
- D. Expensive item such as a gold ring
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Consumable goods are quickly used or depleted after purchase - e.g., petrol, food, lubricants. Their return logistics are complicated because once used, they cannot be resold or reused. (Reference:CIPS L5M10 Study Guide, Reverse logistics for consumables, p. 201)
NEW QUESTION # 21
Which of the following is anEU Directiveaimed at reducing the amount of electronic waste going to landfill?
- A. WEEE
- B. ISO14001
- C. Environment Act 2021
- D. Extended Producer Responsibility
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
WEEE(Waste Electrical and Electronic Equipment) is the EU directive targeting collection, treatment, and recycling of electrical/electronic waste to reduce landfill. (CIPS L5M10 Study Guide, p. 194)
NEW QUESTION # 22
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. Warehouse Management System
- B. Collaborative Planning, Forecasting and Replenishment (CPFR)
- C. Data Warehousing
- D. Six Sigma
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 # 23
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. Concurrent control
- B. Feedforward control
- C. Preventative control
- D. Feedback control
Answer: B,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 # 24
In transportation terminology, what type of cargo would be considered "less than carload" (LTC)?
- A. A shipment that is less than a full truckload
- B. A small box of components that would fit on the back seat of a car
- C. A shipment that fills half a rail carriage in volume
- D. Inventory that is worth less than the price of an average car
Answer: C
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 # 25
Strategic planning is long-term planning, usually over 5-10 years in the future. Is this sentence correct?
- A. No - strategic plans detail the objectives of the organisation over the upcoming year
- B. Yes - the longer the strategic plan, the less detail it will include
- C. Yes - strategic plans have more detail than short-term plans
- D. No - long-term plans are tactical rather than strategic
Answer: B
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 # 26
Select from the following list the example ofreverse logistics.
- A. A retail outlet returns faulty goods to the manufacturer
- B. The manufacturer sends completed goods to the customer
- C. A distribution centre sends goods to several retail units using the same delivery truck
- D. A supplier provides an additional delivery of items to the buyer
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Reverse logistics involves goods movingupstreamin the supply chain-typically from customers back to the manufacturer or supplier-for return, repair, reuse, or recycling. Returning faulty goods to a manufacturer is a textbook example.
(Reference: CIPS L5M10 Study Guide, Reverse logistics definition and examples, p. 189)
NEW QUESTION # 27
Bradbury's Ltd manufactures chocolate and uses an ERP system. Which of the following would be included in theMaster Production Schedule (MPS)?
- A. The full list of ingredients to order
- B. The number of customers served by Bradbury's
- C. The profit margin of each chocolate bar
- D. The rate at which chocolate must be produced in Q1
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The MPS defineswhatproducts will be made,in what quantities, andwhen. It is driven by sales forecasts, existing inventory, and resource capacity. Ingredients (A) are part of the Bill of Materials, not the MPS.
(Reference: CIPS L5M10 Study Guide, Master Production Scheduling, p. 180)
NEW QUESTION # 28
There are five aspects to Total Supply Chain Management Costs. Which of the following isnotone of them?
- A. Overhead costs
- B. Supply chain related finance and planning costs
- C. Material acquisition costs
- D. Order management costs
- E. Inventory carrying costs
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Total Supply Chain Cost (TSCC)covers five areas:
* Order management,
* Material acquisition,
* Inventory carrying,
* Supply chain IT systems,
* Supply chain finance and planning costs.Overheads(e.g., admin, utilities) are general business expenses, not TSCC elements.(Reference: CIPS L5M10 Study Guide, Supply chain cost components, p.
48)
NEW QUESTION # 29
In which of the following examples is capacity expressed as aninputcapacity measure?
- A. A factory makes 1,000 cupcakes a day
- B. A machine produces 100 widgets per day
- C. A worker sews 10 buttons per hour
- D. An oil refineryprocesses 800 barrels of crude oil per day
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Capacity can be measured asinput(amount of input resource the system can accept) oroutput(units produced).
Refinerythroughput stated in barrels of crude oilis aninput-basedexpression; the other options express output. (CIPS L5M10 Study Guide, p. 107)
NEW QUESTION # 30
Which governing body is responsible for the creation and management of Incoterms rules?
- A. International Labour Organization
- B. World Trade Organization
- C. International Chamber of Commerce
- D. United Nations
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Incoterms are published and maintained by the International Chamber of Commerce (ICC) to define buyer
/seller responsibilities for delivery, risk, and costs under international sales contracts. (Reference: CIPS L5M10 Study Guide, Incoterms governance, p. 7)
NEW QUESTION # 31
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. Innovation and Product Design
- B. Logistics
- C. Procurement
- D. Finance
- E. HR
Answer: A,B,C
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 # 32
Bilal has implemented a new production system using 5S and Value Stream Mapping. Which continuous improvement approach has he applied?
- A. Six Sigma
- B. Total Quality Management
- C. Lean
- D. Theory of Constraints
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
5S (Sort, Set, Shine, Standardise, Sustain) and Value Stream Mapping are signature Lean tools focused on waste elimination and process flow efficiency. Six Sigma focuses on variability reduction; TQM is a broader philosophy.
(Reference: CIPS L5M10 Study Guide, Lean manufacturing tools and comparisons, p. 138)
NEW QUESTION # 33
XYZ Logistics provides large trucks nationwide and recently added smaller electric vehicles for smaller clients. This is an example of which form of Competitive Advantage?
- A. Differentiation
- B. Differentiation focus
- C. Cost focus
- D. Cost leadership
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
By introducing anew service offering(small electric fleet) distinct from competitors, XYZ uses differentiation strategy- providing unique value beyond cost competition.
(Reference: CIPS L5M10 Study Guide, Porter's Generic Strategies in logistics context, p. 48)
NEW QUESTION # 34
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?
- A. Developing warehouse budgets
- B. Quality control
- C. Purchasing contract analysis
- D. Monitoring and controlling deliveries
Answer: D
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 # 35
Research highlights that personal norms strongly affect a person's desire to recycle. Which of the following influence personal norms and could increase recycling behaviour? Select TWO.
- A. Legal Norms
- B. Facilities and Infrastructure
- C. Personal Beliefs
- D. Social Norms
Answer: C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Personal norms (moral obligations felt by individuals) are shaped primarily bysocial norms(peer behaviour and expectations) andpersonal beliefs(values and ethics). Legal and infrastructural factors influence convenience but not intrinsic motivation. (Reference:CIPS L5M10 Study Guide, Sustainability and behavioural factors in logistics, p. 195)
NEW QUESTION # 36
Which pieces of information would you require to calculate aBOM explosure? Select TWO
- A. Lead-time of the materials
- B. Current inventory levels
- C. Price of the materials
- D. Materials required to complete an order
Answer: B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABOM explosuredetermines net requirements by expanding theBill of Materialsfor an order and offsetting it againstcurrent inventory/receiptsto find what must be procured or made. Prices and lead times are relevant for scheduling/costing, not for the netting calculation itself. (CIPS L5M10 Study Guide, p. 182)
NEW QUESTION # 37
Baby Ltd manufactures 100 prams each quarter. In Q1, it sold 78 prams. A customer phones in March to order
3 prams for the following month. Is thereAvailability to Promise (ATP)?
- A. Yes - 100 prams will be manufactured in Q2 so the customer can order one of these
- B. Maybe - it depends on the number of customer orders already received for Q2
- C. Maybe - the customer must wait until Q2 to be sure
- D. Yes - 22 prams were unsold last quarter
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Availability to Promise (ATP) is the portion of inventory or planned production that is not yet committed to existing customer orders. It depends on confirmed orders and forecasted production. Without knowing Q2's confirmed demand, ATP cannot be guaranteed.
(Reference: CIPS L5M10 Study Guide, ATP definition and application, p. 182)
NEW QUESTION # 38
"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. Line picking
- C. Wave picking
- D. Rotation picking
- E. Batch picking
Answer: A,C,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 # 39
"Logistics is the flow of goods along a supply chain." Is this sentence true?
- A. Yes, but logistics also includes the flow of intangible items such as information and knowledge
- B. Yes - logistics is the flow of goods, but only downwards along the supply chain
- C. No - logistics is the management of supply and demand along the supply chain
- D. No - logistics is the management of suppliers
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Logistics encompasses the efficient flow and storage of goods, services, and related information from origin to consumption. It is not limited to physical goods or one direction; information and knowledge flows are integral. (Reference: CIPS L5M10 Study Guide, definition and scope of logistics, p. 3)
NEW QUESTION # 40
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. Linear Programming
- B. PERT Analysis
- C. Gantt Chart
- D. Critical Path
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 # 41
What is the name of the emerging tool that can help companies improve supply chain visibility across macro- environmental factors such as political, environmental, and social changes?
- A. Six Sigma
- B. SCEM
- C. LEAN
- D. STEEPLE
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Supply Chain Event Management (SCEM) systems monitor and compareplanned versus actualsupply chain events. They issue alerts when disruptions or macro-environmental changes (e.g., political instability or weather) cause deviations from plan, enabling rapid corrective actions. (Reference:CIPS L5M10 Study Guide, SCEM section, p. 40)
NEW QUESTION # 42
Which of the following areadvantagesof introducing a Materials Requirements Planning (MRP) system to a business? Select TWO.
- A. Less time spent repairing machines
- B. More agile supply chain
- C. Reduced inventory costs
- D. Better customer service
Answer: C,D
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 # 43
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