CIPS L5M10 Exam Practice Test Instant Access

Question 1

Blue Toes Inc. conducts a Cost-to-Serve analysis and identifies customer ''Pink Nose'' as low-cost-to-serve and high-value. Which strategy should they apply?

AProtect

BCost engineer

CBuild

DDanger zone

Answer : A

Comprehensive and Detailed Explanation From Exact Extract:

The Customer Profitability Matrix (Christopher, 1998) identifies ''Protect'' for high-value, low-cost-to-serve accounts --- focusing on retention and maintaining satisfaction.

(Reference: CIPS L5M10 Study Guide, Customer Profitability Matrix, p. 62)

Question 2

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?

AGantt Chart

BCritical Path

CPERT Analysis

DLinear Programming

Answer : A

Comprehensive and Detailed Explanation From Exact Extract:

A Gantt chart visually maps activities over time for planning 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)

Question 3

Demand for a product can be classified as either dependent or independent. Which of the following companies produces a dependent demand item?

AAn ice cream van operating from April to September

BAn online clothing retailer

CA company that produces tyres for cars

DA dairy farm producing organic milk

Answer : C

Comprehensive and Detailed Explanation From Exact Extract:

Dependent demand refers 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 is independent, influenced by consumer behaviour rather than other production outputs.

(Reference: CIPS L5M10 Study Guide, Dependent vs. independent demand concepts, p. 114)

Question 4

Jack bought a washing machine from a UK retailer. After 1 year, a fault develops that stops it from working. Under UK legislation can Jack return the item?

AYes -- if this is within the warranty period

BYes -- if he has attempted to fix the item himself and cannot fix it

CNo -- as he has used the item

DNo -- a customer has a maximum of 14 or 30 days to return the item

Answer : A

Comprehensive and Detailed Explanation From Exact Extract:

Under the Consumer Rights Act 2015, if a product develops a fault within its warranty period, the customer has the right to repair, replacement, or refund. Attempting self-repair voids warranty protection. The 14--30-day ''cooling-off period'' applies to unused, distance-purchased goods only.

(Reference: CIPS L5M10 Study Guide, Consumer legislation and returns, p. 200)

Question 5

What is the name of the type of barcode that uses 12 numeric digits and is typically used for tracking items in store?

AUPC

BQR Code

CPDF417

DAztec Code

Answer : A

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)

Question 6

Paul is a Warehouse Manager of plumbing supplies. He is planning to change the layout by placing fast-moving items near the front, slower further back, and rarely used items in separate storage. What type of system is Paul using?

AABC analysis

BVED analysis

CFSN analysis

DHML analysis

Answer : C

Comprehensive and Detailed Explanation From Exact Extract:

FSN groups items by movement speed: Fast-moving, Slow-moving, Non-moving. It's used to position stock for efficient access and handling based on usage frequency. (CIPS L5M10 Study Guide, p. 147)

Question 7

Strategic planning is long-term planning, usually over 5--10 years in the future. Is this sentence correct?

AYes --- the longer the strategic plan, the less detail it will include

BYes --- strategic plans have more detail than short-term plans

CNo --- long-term plans are tactical rather than strategic

DNo --- strategic plans detail the objectives of the organisation over the upcoming year

Answer : A

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)

CIPS Logistics Management L5M10 Exam Practice Test