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NEW QUESTION # 20
Which of the following areadvantagesof introducing a Materials Requirements Planning (MRP) system to a business? Select TWO.
- A. Reduced inventory costs
- B. Less time spent repairing machines
- C. More agile supply chain
- D. Better customer service
Answer: A,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 # 21
Which of the following are benefits of usingService Life-Cycle Management (SLM)? Select TWO.
- A. Cost savings
- B. Effective planning of resources
- C. Accurate demand forecasting
- D. Customer retention
Answer: B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
SLM manages services across their life cycle - including after-sales and support - improvingcustomer retentionandresource planning. While beneficial long-term, it may increase costs rather than reduce them.
(Reference: CIPS L5M10 Study Guide, Service Life-Cycle Management, p. 65)
NEW QUESTION # 22
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?
- A. Quality control
- B. Monitoring and controlling deliveries
- C. Developing warehouse budgets
- D. Purchasing contract analysis
Answer: B
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 # 23
In a logistics system, if the production rate increases, which of the following is true?
- A. The workload arrival rate increases
- B. The workload arrival rate decreases
- C. The waiting rate increases
- D. The throughput time increases
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An increase in the production rate generally leads to an increase in theworkload arrival rate- the rate at which items or tasks enter the system for processing. This relationship reflects flow interdependence between system inputs and production capacity. The relationship among production rate, throughput rate, and waiting rate is visually represented in logistics process flow diagrams.
(Reference:CIPS L5M10 Study Guide, Flow management and capacity relationships, p. 132)
NEW QUESTION # 24
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. Cost focus
- C. Differentiation 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 # 25
What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
- A. To reduce costs
- B. To save time
- C. To avoid import duty
- D. To simplify billing
Answer: A,B
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 # 26
Which of the following scenarios would an MRP system struggle to cope with?
- A. Changes in requirements from customers
- B. Reducing inventory costs for the business
- C. Changes in prices of raw materials
- D. Improving the response time to customer queries
Answer: A
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 # 27
What is the name of the common indicator, often expressed as a percentage of time when an organisation's core resource (equipment or people) is engaged in production or transformation activities?
- A. Downtime rate
- B. Production rate
- C. Waiting rate
- D. Utilisation rate
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Utilisation ratemeasures the proportion of available capacity that is actually used for productive activity. It is calculated as:
This indicator helps managers understand how efficiently facilities or resources are being used. High utilisation may indicate efficiency but could also suggest limited flexibility. (Reference:CIPS L5M10 Study Guide, Capacity utilisation and performance measures, p. 132)
NEW QUESTION # 28
Bilal has implemented a new production system using 5S and Value Stream Mapping. Which continuous improvement approach has he applied?
- A. Six Sigma
- B. Lean
- C. Total Quality Management
- D. Theory of Constraints
Answer: B
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 # 29
The 'Drum, Buffer, Rope' technique helps to solve which issue in manufacturing?
- A. Bottlenecks
- B. Redundant inventory
- C. Fluctuations in prices
- D. Poor forecasting
Answer: A
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 # 30
Gary's Garage fixes cars. He wants to calculate theaverage time in the system per car processed. Which indicator should he use?
- A. Production rate
- B. Waiting rate
- C. Throughput time
- D. Utilisation rate
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Throughput time(also "flow time" or "cycle time") is theaverage time an item spends in the systemfrom entry to exit, capturing processing and waiting. (CIPS L5M10 Study Guide, p. 131)
NEW QUESTION # 31
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 used shortly after purchase, such as petrol
- B. An item out of warranty
- C. Kitchen equipment used in food preparation
- D. Expensive item such as a gold ring
Answer: A
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 # 32
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. Feedforward control
- C. Concurrent control
- D. Feedback control
Answer: A,B
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 # 33
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Banks and creditors
- B. Drivers of logistics vehicles
- C. Suppliers
- D. Government agencies
Answer: C,D
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 # 34
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. UPC
- C. Aztec Code
- D. PDF417
Answer: B
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 # 35
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. Six Sigma
- C. Collaborative Planning, Forecasting and Replenishment (CPFR)
- D. Data Warehousing
Answer: C
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 # 36
Terry manages a warehouse stocking electronics and has a pilferage (theft) issue. Which of the following would help reduce this issue?
- A. Warehouse Management System
- B. Additional breaks for staff
- C. RFID tags
- D. Paperless communication with suppliers
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
RFID tagging supports item-level identification and can trigger alarms at controlled exit points, helping deter and detect theft. While a WMS improves control and accuracy, RFID directly addresses shrinkage through automated detection. (Reference: CIPS L5M10 Study Guide, RFID uses-waste and pilferage reduction, p.
23)
NEW QUESTION # 37
Omar is forecasting future demand. Normally he uses three years of sales data, but this year he's been asked to include data back to 2004. Which forecasting technique is he using?
- A. Time series method
- B. Moving average technique
- C. Exponential smoothing technique
- D. Simple linear regression
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Exponential smoothing gives progressively less weight to older data but uses the entire historical dataset to forecast future demand. Moving averages, by contrast, use a fixed number of recent periods. (Reference: CIPS L5M10 Study Guide, Demand forecasting methods, p. 157)
NEW QUESTION # 38
Invoice accuracy would affect which element of a company's balance sheet?
- A. Current liabilities
- B. Receivables
- C. Inventory
- D. Property, plant and equipment
Answer: B
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 # 39
Jolie is a Warehouse Manager proposing a Warehouse Management System (WMS). Which of the following are advantages of using a WMS? Select THREE.
- A. It will lead to further orders from online retailers
- B. Inventory accuracy will be improved
- C. It will provide real-time information
- D. It will develop a push-based supply chain
- E. It can reduce labour costs
Answer: B,C,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AWMSimprovesinventory accuracy, offersreal-time tracking, andreduces labour costsvia automation. It supportspull-basedsystems (demand-driven), not push, and does not guarantee new business.
(Reference: CIPS L5M10 Study Guide, Warehouse management technology benefits, p. 90)
NEW QUESTION # 40
Which approach aims to increase profits by maximising the performance ofconstraints?
- A. Six Sigma
- B. Theory of Constraint
- C. Total Quality Management
- D. Lean
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheTheory of Constraint (TOC)is built on the ideas that every process has abottleneckand that improving throughput requiresexploiting/elevating that constraint(while subordinating other steps). (CIPS L5M10 Study Guide, p. 138)
NEW QUESTION # 41
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