Which of the following is a commonly used indicator for measuring capacity and manufacturing productivity and is usually expressed as the percentage of time a machine is truly productive?
Answer : B
Comprehensive and Detailed Explanation From Exact Extract:
Overall Equipment Effectiveness (OEE) combines availability, performance, and quality to indicate how much of scheduled time a resource is genuinely productive. Downtime is a component that reduces OEE; ''actual output'' is an absolute measure, not an effectiveness percentage. (Reference: CIPS L5M10 Study Guide, OEE definition, p. 109)
Question 2
When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs would not be included in the calculation?
Answer : C
Comprehensive and Detailed Explanation From Exact Extract:
TCO for inventory focuses on all direct and indirect costs incurred in holding stock --- such as pilferage (theft), obsolescence (unsellable items), and insurance (risk protection for loss/damage). Staff uniforms, however, are general overheads unrelated to inventory holding cost. (Reference: CIPS L5M10 Study Guide, ''Costs of holding inventory,'' p. 27)
Question 3
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
Answer : C
Comprehensive and Detailed Explanation From Exact Extract:
An NVOCC functions as a legal carrier issuing Bills of Lading but does not own 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)
Question 4
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
Answer : A, B, C
Comprehensive and Detailed Explanation From Exact Extract:
Core inputs to MRP include the Master Production Schedule (MPS), master/engineered production levels and the Bill of Materials (BOM). Items like the production plan and materials movement plan are outputs/derived plans produced by running the MRP logic. (CIPS L5M10 Study Guide, p. 171)
Question 5
Terry manages a warehouse stocking electronics and has a pilferage (theft) issue. Which of the following would help reduce this issue?
Answer : A
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)
Question 6
Which of the following are advantages of using an ERP system over an MRP system? Select TWO.
Answer : A, D
Comprehensive and Detailed Explanation From Exact Extract:
ERP extends the MRP concept across the whole enterprise. It centralises data (reducing duplication and error) and supports multiple languages and currencies for global operations. It is, however, more complex and costly to implement than MRP.
(Reference: CIPS L5M10 Study Guide, ERP evolution from MRP, pp. 175--176)
Question 7
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
Answer : C, D, E
Comprehensive and Detailed Explanation From Exact Extract:
The MPS is driven by forecast demand, firm customer orders, and current inventory/availability to decide what, how much, and when to make. Financial statements and prices are not direct inputs to the MPS. (CIPS L5M10 Study Guide, p. 180)
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