CIPS Logistics Management L5M10 Exam Questions

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Total 88 questions
Question 1

Invoice accuracy would affect which element of a company's balance sheet?



Answer : A

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)


Question 2

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?



Answer : B

Comprehensive and Detailed Explanation From Exact Extract:

CPFR promotes collaborative data sharing and 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)


Question 3

Whether a company should implement a Lean or Agile supply chain should be considered as part of which organisational document?



Answer : B

Comprehensive and Detailed Explanation From Exact Extract:

Choosing Lean vs. Agile is a long-term, structural design decision and is addressed in strategic planning. Tactical and operational plans translate strategy into mid- and short-term actions. (CIPS L5M10 Study Guide, p. 100)


Question 4

Customer service levels can be measured using Service Level Agreements (SLAs). Which of the following are ''hard'' measures typically found in an SLA? Select THREE



Answer : A, C, D

Comprehensive and Detailed Explanation From Exact Extract:

''Hard'' measures are objective, quantifiable performance indicators---typical logistics/service measures include stock availability, first-time fix rate, and on-time delivery. Measures such as complaint seriousness and perceived satisfaction are ''soft'' (more subjective) but still useful. (Reference: CIPS L5M10 Study Guide, SLAs---hard vs soft measures, p. 60)


Question 5

Which pieces of information would you require to calculate a BOM explosure? Select TWO



Answer : A, C

Comprehensive and Detailed Explanation From Exact Extract:

A BOM explosure determines net requirements by expanding the Bill of Materials for an order and offsetting it against current inventory/receipts to find what must be procured or made. Prices and lead times are relevant for scheduling/costing, not for the netting calculation itself. (CIPS L5M10 Study Guide, p. 182)


Question 6

Which of the following are benefits of using Service Life-Cycle Management (SLM)? Select TWO.



Answer : C, D

Comprehensive and Detailed Explanation From Exact Extract:

SLM manages services across their life cycle --- including after-sales and support --- improving customer retention and resource planning. While beneficial long-term, it may increase costs rather than reduce them.

(Reference: CIPS L5M10 Study Guide, Service Life-Cycle Management, p. 65)


Question 7

Which of the following is an EU Directive aimed at reducing the amount of electronic waste going to landfill?



Answer : B

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)


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Total 88 questions