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CIPS L5M10 Exam Syllabus Topics:
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NEW QUESTION # 47
The Supply Chain Module of an ERP (Enterprise Resource Planning) system would typically include which of the following elements? Select THREE.
- A. Finance management
- B. Customer relationship management
- C. Transport management
- D. Warehouse 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 # 48
Which of the following is anEU Directiveaimed at reducing the amount of electronic waste going to landfill?
- A. ISO14001
- B. WEEE
- C. Extended Producer Responsibility
- D. Environment Act 2021
Answer: B
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 # 49
RFID tags are commonly used in warehousing to improve speed and accuracy. Which of the following functions can RFID technology complete?
- A. Storage
- B. Logistics
- C. Demand planning
- D. Track and trace
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
RFIDenablesreal-time tracking and tracingof goods through automated scanning. Active tags continuously transmit location; passive tags activate upon scanning.
(Reference: CIPS L5M10 Study Guide, RFID applications in warehousing, p. 84)
NEW QUESTION # 50
"Logistics is the flow of goods along a supply chain." Is this sentence true?
- A. Yes - logistics is the flow of goods, but only downwards along the supply chain
- B. No - logistics is the management of suppliers
- C. No - logistics is the management of supply and demand along the supply chain
- D. Yes, but logistics also includes the flow of intangible items such as information and knowledge
Answer: D
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 # 51
Which of the following is a key driver of reverse logistics?
- A. An increase in the manufacturing of faulty goods
- B. Free returns offered to customers who buy online
- C. Increased prices of raw materials to the manufacturer
- D. Increased demand within the retail sector
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The growth ofe-commerce free-returns policieshas significantly increasedreturn volumes, making it a major driver of reverse logistics activity and cost. (CIPS L5M10 Study Guide, p. 190)
NEW QUESTION # 52
Which of the following is an example of aJust-in-Time (JIT) IIinventory system?
- A. A supplier is implanted within a customer organisation and places orders to their own company
- B. A company places orders only when items are required
- C. A two-bin system is used whereby a supplier delivers new stock when one bin is empty
- D. A manufacturer holds zero inventory
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
JIT IIintegrates suppliers directly within the customer's premises, allowing them tomanage replenishment themselves using the customer's systems - enhancing responsiveness and coordination.
(Reference:CIPS L5M10 Study Guide, JIT and JIT II methods, p. 11)
NEW QUESTION # 53
Of the following items, which isnot recyclable?
- A. Solvents
- B. Industrial catalysts
- C. Plastic
- D. Agricultural products such as pesticides
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Agricultural products like pesticidesare classified as hazardous substances andcannot be recycled.
* Plasticsandindustrial catalystscan be recycled.
* Solventsare technically recyclable but are often not economically viable to recycle at scale.(Reference:
CIPS L5M10 Study Guide, Materials and recyclability, p. 196)
NEW QUESTION # 54
Which governing body is responsible for the creation and management of Incoterms rules?
- A. International Chamber of Commerce
- B. World Trade Organization
- C. United Nations
- D. International Labour Organization
Answer: A
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 # 55
What is the name given to an additional file attached to an inventory file that links a requirement to the specific order or component that triggered it?
- A. Peg record
- B. CSV file
- C. Bill of materials
- D. Requirement record
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Apeg recordprovides "pegging," i.e., a traceable link betweendemand(e.g., a customer order/MPS line) and the specificsupplycreated to satisfy it. (CIPS L5M10 Study Guide, p. 186)
NEW QUESTION # 56
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. Distribution resource planning
- B. Distribution channelling
- C. Pull-through distribution
- 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 # 57
Which of the following statements about Sales and Operations Planning (S&OP) are TRUE? Select TWO
- A. Competitors' behaviour is not accounted for in Sales and Operations Planning
- B. It is a fundamental financial plan to ensure business profitability in relation to supply and demand
- C. It is a cross-functional activity
- D. It is a process of planning future aggregate resource levels so that supply will balance with demand
Answer: C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
S&OP aligns aggregate demand and supply by planning future resource levels, typically on a rolling monthly cycle. It is explicitly cross-functional, involving operations/logistics, marketing/sales, finance, and HR to reconcile a single plan. While finance input is important, S&OP is not merely a financial plan, and external factors-including competitor actions-are considered in demand assumptions. (Reference: CIPS L5M10 Study Guide, S&OP overview, p. 112)
NEW QUESTION # 58
Hazardous waste such as asbestos or radioactive material presents additional reverse logistics complications.
In these cases, what type of return is used?
- A. Recycle return
- B. End-of-life return
- C. Product defect return
- D. Product recall
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
End-of-life returns occur when a product cannot be repaired, reused, or recycled safely and must be disposed of in line with legal and environmental regulations. Hazardous waste (e.g., asbestos) falls under this category due to safety requirements. (Reference:CIPS L5M10 Study Guide, Reverse logistics-types of returns, p. 193)
NEW QUESTION # 59
There are five aspects to Total Supply Chain Management Costs. Which of the following isnotone of them?
- A. Overhead costs
- B. Inventory carrying costs
- C. Material acquisition costs
- D. Order management costs
- E. Supply chain related finance and planning 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 # 60
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
- A. They provide documentation such as the Bill of Lading
- B. They are generally cheaper to use than traditional logistics companies
- C. They own all of their own shipping vessels
- D. They undertake transportation by air, land, or water
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An NVOCC functions as a legal carrier issuing Bills of Lading but doesnotown or operate vessels. They arrange shipping with vessel operators on behalf of clients. Their role focuses on consolidation, documentation, and legal responsibility for the cargo. (Reference:CIPS L5M10 Study Guide, Maritime logistics and NVOCC, p. 43)
NEW QUESTION # 61
Miranda is updating the Business Strategy for her company. It is important she aligns the Business Strategy with which of the following?
- A. Corporate strategy
- B. Cost strategy
- C. Functional strategy
- D. Service strategy
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Corporate Strategy sets the organisation's overarching mission and goals. Business Strategy derives from it, outlininghowthose goals will be achieved. Functional strategies (like procurement or logistics) then support the Business Strategy. Therefore, Business Strategy alignment must be upward with Corporate Strategy.
(Reference:CIPS L5M10 Study Guide, Strategic alignment hierarchy, p. 52)
NEW QUESTION # 62
Dasap Group Ltd has hired a third-party logistics organisation (3PL) to manage some aspects of their business. Which of the following business functions would you expect a 3PL company to manage on behalf of Dasap Group Ltd? Select THREE.
- A. Management of customer complaints
- B. Production of sales reports
- C. Operation of the distribution centre
- D. Manage the delivery of items through a transport fleet
- E. Management of the receipt of customer orders
Answer: C,D,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A3PL (Third-Party Logistics)provider can manage operational logistics functions such asorder receipt and processing,distribution centre operations, andtransport management(fleet, routing, delivery). Customer complaints and sales reports remain the client's responsibility.
(Reference: CIPS L5M10 Study Guide, Outsourced logistics and 3PL services, p. 33)
NEW QUESTION # 63
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. Procurement
- B. Innovation and Product Design
- C. HR
- D. Finance
- E. Logistics
Answer: A,B,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 # 64
In an MRP system, which inputs need to be programmed into the system in order to generate a purchase order for new stock? Select THREE
- A. Materials Movement Plan
- B. Production Plan
- C. Master Production Schedule
- D. Bill of Materials
- E. Master Production Levels
Answer: C,D,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Coreinputsto MRP include theMaster Production Schedule (MPS),master/engineered production levels and theBill of Materials (BOM). Items like theproduction planandmaterials movement planareoutputs
/derived plansproduced by running the MRP logic. (CIPS L5M10 Study Guide, p. 171)
NEW QUESTION # 65
Which of the following standards apply to the use of RFID and other digital data structures regardingpersonal privacy and data collection?
- A. ISO 14001
- B. ISO 20400
- C. ISO 9001
- D. ISO 20248
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ISO 20248definesdata structures and digital signature meta-structuresfor AIDC technologies like barcodes and RFID, addressing authentication, privacy, and traceability.
(Reference: CIPS L5M10 Study Guide, RFID standards and compliance, p. 85)
NEW QUESTION # 66
In which of the following examples is capacity expressed as aninputcapacity measure?
- A. An oil refineryprocesses 800 barrels of crude oil per day
- B. A factory makes 1,000 cupcakes a day
- C. A machine produces 100 widgets per day
- D. A worker sews 10 buttons per hour
Answer: A
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 # 67
Simon, CEO of a toy manufacturer, imports components from China, paid for in advance, with 2-week delivery. He defines inventory as only what is in the warehouse and factory. Is this correct?
- A. Yes - inventory can be held at different levels
- B. No - Simon must also consider the inventory held by retailers
- C. Yes - but only completed toys count as inventory
- D. No - Simon must also consider inventory in transit from China
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Pipeline inventory(goods in transit between suppliers and buyers) forms part of total inventory value once ownership transfers (e.g., after payment). Retailer stock is excluded unless under vendor-managed agreements.
(Reference: CIPS L5M10 Study Guide, Inventory types and pipeline inventory, p. 40)
NEW QUESTION # 68
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