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NEW QUESTION # 20
Which of the following scenarios would an MRP system struggle to cope with?
- A. Changes in prices of raw materials
- B. Changes in requirements from customers
- C. Reducing inventory costs for the business
- D. Improving the response time to customer queries
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 # 21
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 focus
- B. Differentiation
- C. Cost focus
- D. Cost leadership
Answer: B
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 # 22
Outbound logistics describes the activities from receipt of goods to use on the production line. Is this correct?
- A. No - outbound logistics is the process of movement from the production line to the end customer
- B. Yes - it is inclusive of warehousing and materials handling
- C. No - outbound logistics is the return of items from the customer, for example if they are faulty
- D. Yes - it includes inventory management processes such as quality checking and stock control
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Outbound logisticsinvolves activities that movefinished goods from production to the end customer. The description given refers toinbound logistics(movement from suppliers to production). Returns from customers arereverse logistics.
(Reference:CIPS L5M10 Study Guide, Inbound, outbound and reverse logistics definitions, p. 4)
NEW QUESTION # 23
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. STEEPLE
- B. Six Sigma
- C. LEAN
- D. SCEM
Answer: D
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 # 24
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. Feedback control
- B. Preventative control
- C. Feedforward control
- D. Concurrent 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 # 25
Hazardous waste such as asbestos or radioactive material presents additional reverse logistics complications.
In these cases, what type of return is used?
- A. End-of-life return
- B. Recycle return
- C. Product recall
- D. Product defect return
Answer: A
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 # 26
In which circumstance does the supplier hold the power in negotiations?
- A. Low-value contract, high market risk
- B. High-value contract, low market risk
- C. High-value contract, low market risk
- D. Low-value contract, low market risk
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The supplier positioning/power matrix shows supplier power increases when the buyer's spend is low (low value to the supplier) and market risk is high (limited alternatives, volatility). Buyer power is strongest with high contract value and low market risk. (Reference: CIPS L5M10 Study Guide, Supplier Positioning Model and power dynamics, p. 71)
NEW QUESTION # 27
Which approach aims to increase profits by maximising the performance ofconstraints?
- A. Total Quality Management
- B. Six Sigma
- C. Theory of Constraint
- D. Lean
Answer: C
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 # 28
Which of the following standards apply to the use of RFID and other digital data structures regardingpersonal privacy and data collection?
- A. ISO 9001
- B. ISO 20248
- C. ISO 14001
- D. ISO 20400
Answer: B
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 # 29
Miranda is updating the Business Strategy for her company. It is important she aligns the Business Strategy with which of the following?
- A. Cost strategy
- B. Corporate strategy
- C. Functional strategy
- D. Service strategy
Answer: B
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 # 30
Of the following items, which isnot recyclable?
- A. Agricultural products such as pesticides
- B. Solvents
- C. Industrial catalysts
- D. Plastic
Answer: A
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 # 31
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?
- A. It is cheap to introduce
- B. It replaces emails
- C. It allows humans to check the work for accuracy
- D. It simplifies the supply chain
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)
NEW QUESTION # 32
The return logistics of consumable goods is more difficult and complex. Which of the following is an example of a consumable good?
- A. Expensive item such as a gold ring
- B. An item out of warranty
- C. Kitchen equipment used in food preparation
- D. An item used shortly after purchase, such as petrol
Answer: D
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 # 33
Which of the following are types of Auto-Identification and Data Capture (AIDC) technology used in logistics? Select THREE
- A. Voice recognition
- B. Biometrics
- C. Smartphones
- D. Barcodes
- E. Electronic data interchange
Answer: A,B,D
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 # 34
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. Data Warehousing
- D. Collaborative Planning, Forecasting and Replenishment (CPFR)
Answer: D
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 # 35
In an organisation that has implemented the Theory of Constraint in manufacturing, which of the following is true?
- A. Inventory is not held
- B. Inventory is seen as a liability
- C. Inventory is held by the customer
- D. Inventory is seen as an asset
Answer: B
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 # 36
Yolo Inc. is a low-cost manufacturer with tight margins. To remain profitable, logistics must help reduce costs. Which transportation strategy best supports this aim?
- A. Run a competitive tender annually to secure the cheapest logistics provider
- B. Eliminate all activities that do not provide value add
- C. Brand all fleet vehicles with company logos
- D. Manage inbound logistics to strict KPIs to reduce waste and delays
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cost-leadership logistics requires efficiency in inbound and outbound flows. Managing inbound logistics using KPIs (e.g., vehicle turnaround time, delivery reliability) reduces time waste and unnecessary costs.
Annual tenders or branding efforts do not guarantee cost reduction. (Reference:CIPS L5M10 Study Guide,
"Cost as a business strategy," p. 53)
NEW QUESTION # 37
A Master Production Schedule (MPS) will create a production plan for an item over a period. Which sources will the MPS take information from? Select THREE
- A. Current stock levels
- B. Firm customer orders
- C. Company balance sheet
- D. Price of the materials
- E. Forecast demand
Answer: A,B,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheMPSis driven byforecast demand,firm customer orders, andcurrent inventory/availabilityto decide what, how much, and whento make. Financial statements and prices are not direct inputs to the MPS. (CIPS L5M10 Study Guide, p. 180)
NEW QUESTION # 38
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
- A. They own all of their own shipping vessels
- B. They provide documentation such as the Bill of Lading
- C. They undertake transportation by air, land, or water
- D. They are generally cheaper to use than traditional logistics companies
Answer: B
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 # 39
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 # 40
RFID tags are commonly used in warehousing to improve speed and accuracy. Which of the following functions can RFID technology complete?
- A. Logistics
- B. Demand planning
- C. Track and trace
- D. Storage
Answer: C
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 # 41
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