CIPS L5M7 Exam Questions Instant Access - No Installation Required

Question 1

What is Six Sigma?

AA methodology to eliminate defects in a business process

BA form of outsourcing

CA process of supplier rationalisation

DA supply chain analysis tool

Answer : A

Six Sigma is a data-driven methodology aimed at eliminating defects and reducing variation to improve quality and performance. Short cited terms: ''data-driven,'' ''eliminate defects'' (L5M7 Study Guide, p.110).

Question 2

A pricing approach in which a value point is decided upon and maintained for a prescribed period is known as what?

AFixed Pricing

BVariable Pricing

CCost-Plus Pricing

DCompetitive Pricing

Answer : A

Fixed pricing maintains a constant price for a defined period regardless of market changes, providing stability for both buyer and supplier.

Short cited extract: ''Fixed pricing -- price remains constant for an agreed duration.'' (L5M7 Study Guide, p.188)

Question 3

Joe is a Supply Chain Manager at a car manufacturer in the UK. He plans rationalisation to streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.

ACustomisation

BSupplier innovation

CCollaborative inventory management

DTier-skipping

EReducing the number of suppliers

Answer : D, E

Rationalisation includes reducing supplier numbers and practices such as tier-skipping to simplify the network and reduce cost/complexity. Short extract: ''rationalisation---reduce supplier base; consider tier-skipping.'' (L5M7 Study Guide, p.11)

Question 4

Trust is a dynamic concept required in partnership relationships. Which of the following are part of the five trust components important in supply chains?

AIntegrity

BCompetence

CLoyalty

DPower

ECharm

Answer : A, B, C

Trust in supply chains is built on components including integrity, competence, loyalty, openness, and fairness. Short extract: ''key trust components: integrity, competence, loyalty, openness, fairness.'' (L5M7 Study Guide, Domain 3.4 section)

Question 5

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 6

An organisation with a market-orientated approach to competitive advantage would have which feature?

AThe customer comes first

BDetailed specifications

CHigh expectations of staff

DLarge workforce

Answer : A

A market-oriented approach centres on customer needs, designing offerings around satisfaction and experience rather than internal operations.

Short cited extract: ''Market-oriented -- focus on customer satisfaction and value creation.'' (L5M7 Study Guide, p.55)

Question 7

Just-in-Time (JIT) manufacturing is a form of which organisational strategy?

ABusiness Process Re-engineering

BLean

CCost Leadership

DDifferentiation

Answer : B

JIT is a Lean technique to minimise inventory and produce ''only what is needed, when needed,'' thereby removing waste from processes. Short cited phrase: ''only when needed'' (L5M7 Study Guide, p.111).

CIPS Achieving Competitive Advantage Through the Supply Chain L5M7 Exam Questions