CIPS L5M7 Exam Questions Instant Access - No Installation Required

Question 1

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 2

When analysing a series of data, the number which occurs most frequently is known as what?

AMedian

BMode

CMean

DAverage

Answer : B

The Mode is the value that appears most often in a dataset, distinguishing it from the mean (average) and median (middle value).

Short cited term: ''mode = most frequent value.'' (L5M7 Study Guide, p. 149)

Question 3

In a typical supply chain, in which direction does value-add travel?

AFrom the customer to the distributor

BFrom the first supplier to the customer

CFrom the OEM to the retailer

DFrom the retailer to the supplier

Answer : B

Value flows downstream, originating with suppliers and moving toward the end customer. A typical chain is tiered suppliers OEM/producer distributors/retailers customer. Short cited term: ''value moves downstream'' (L5M7 Study Guide, p.4).

Question 4

According to the Kraljic Matrix, suppliers are classified based on which TWO factors?

ACost impact

BRisk impact

CPosition in the supply chain

DLevel of co-operation

Answer : A, B

The Kraljic Matrix plots supply risk against profit (cost) impact to determine supplier strategy (leverage, bottleneck, routine, strategic).

Short cited extract: ''Matrix axes -- profit impact vs supply risk.'' (L5M7 Study Guide, p. 83)

Question 5

Which of the following relationship styles has the least amount of trust?

ATransactional

BOutsourced

CPartnership

DCloser Tactical

Answer : A

The relationship spectrum shows that transactional relationships are the least trust-based, focusing on short-term exchanges with minimal collaboration.

Short cited extract: ''Transactional -- low trust, short-term, low collaboration.'' (L5M7 Study Guide, p.80)

Question 6

In a confectionery factory, quality inspection occurs before packaging. If a product is found defective, which type of cost of quality is incurred?

AInternal failure cost

BExternal failure cost

CPrevention cost

DAppraisal cost

Answer : A

Defects discovered before dispatch are classified as internal failures, including rework, scrap, or re-inspection.

Short cited term: ''internal failure = defects found before reaching customer.'' (L5M7 Study Guide, p. 128)

Question 7

A strategy in which an organisation concentrates its resources on a narrow market or industry segment is which of Porter's Generic Strategies?

ACost Leadership

BFocus

CDifferentiation

DCost Certainty

Answer : B

Porter's Focus Strategy involves targeting a niche market to meet unique needs better than competitors.

Short cited term: ''focus -- targeting a narrow market segment'' (L5M7 Study Guide, p. 52).

CIPS Achieving Competitive Advantage Through the Supply Chain L5M7 Exam Questions