CIPS L5M7 Exam Questions Instant Access - No Installation Required

Question 1

In a supply chain, can a downstream supplier influence all aspects of quality including customer perception?

AYes -- downstream suppliers have the most power in the chain

BYes -- customer perception is derived from the supplier's inputs and specification

CNo -- customer perception is influenced by other functions such as marketing

DNo -- a downstream supplier has no control over quality at all

Answer : C

A downstream supplier influences most aspects of quality but not customer perception, which is shaped by marketing and brand functions.

Short cited term: ''except customer perception, influenced by marketing'' (L5M7 Study Guide, p. 30).

Question 2

Why would a company use a Process Mapping Technique? Select TWO.

ATo increase market share

BTo assist with budgeting

CTo identify where waste and inefficiency exist

DTo establish what is currently happening and why

Answer : C, D

Process mapping visually defines how processes operate, revealing inefficiencies, duplication, and waste, and clarifies the current process flow and responsibilities.

Short cited term: ''identifies inefficiencies and highlights process waste'' (L5M7 Study Guide, p. 73).

Question 3

Long runs, stable product design, and inventory buffers are objectives of which business function?

ASourcing

BManufacturing

CLogistics

DSales

Answer : B

Manufacturing objectives emphasise efficiency through long production runs, stable design, and inventory buffering to ensure continuity of output.

Short cited term: ''manufacturing -- long runs and inventory buffer.'' (L5M7 Study Guide, p. 36)

Question 4

Sandy has been asked to collect primary data on manufacturing defects and their effect on profits. She decides to send a questionnaire to staff. Is this correct?

AYes -- a questionnaire is a form of primary data

BYes -- staff will know all the answers

CNo -- she should research online about defaults

DNo -- a questionnaire will not provide useful information

Answer : A

Primary data is information collected first-hand, including surveys, interviews, and questionnaires. Sandy's approach aligns with primary data collection methods.

Short cited extract: ''Primary data: original research such as questionnaires and interviews.'' (L5M7 Study Guide, p.141)

Question 5

Which of the following are incentives for suppliers to perform well on a contract? Select TWO.

ARevenue-based pricing

BMarket-based pricing

COutcome-based pricing

DQuality-based pricing

Answer : A, C

Revenue-based and Outcome-based pricing share financial benefits and performance gains, motivating suppliers to excel.

Short cited term: ''gainshare, revenue and outcome pricing as supplier incentives.'' (L5M7 Study Guide, p. 198)

Question 6

A car manufacturer that accommodates unique and desirable features into design at a premium cost is using which of the following strategies?

ACost Leadership

BCost Focus

CDifferentiation

DCustomer Experience

Answer : C

Differentiation Strategy involves offering products with unique attributes that customers value and are willing to pay more for, thus achieving competitive advantage.

Short cited term: ''differentiation -- unique product features at premium price.'' (L5M7 Study Guide, p. 177)

Question 7

Data needs to be collected, measured, and analysed to ensure quality in processes. Which of the following should the data be?

ASpecific, Measurable, Achievable

BAchievable, Time-bound, and Qualitative

CQuick, Relevant, and Measurable

DTime-bound, Detailed, and Impartial

Answer : A

Effective quality measurement requires SMART data---Specific, Measurable, Achievable, Relevant, and Time-bound---ensuring that data supports actionable improvement.

Short cited extract: ''Data should be SMART to allow accurate performance analysis.'' (L5M7 Study Guide, p.140)

CIPS Achieving Competitive Advantage Through the Supply Chain L5M7 Exam Questions