CIPS L5M10 Exam Questions (Updated 2026) 100% Real Question Answers
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CIPS L5M10 Exam Syllabus Topics:
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NEW QUESTION # 29
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Government agencies
- B. Banks and creditors
- C. Suppliers
- D. Drivers of logistics vehicles
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
External stakeholders in reverse logistics includesuppliers, who may receive returned goods or components, andgovernment agencies, who regulate waste handling, recycling, and environmental compliance. Banks and creditors are financial stakeholders, not operational ones, and logistics drivers are internal or connected stakeholders.
(Reference: CIPS L5M10 Study Guide, Reverse logistics stakeholders, p. 192)
NEW QUESTION # 30
In which of the following examples is capacity expressed as aninputcapacity measure?
- A. An oil refineryprocesses 800 barrels of crude oil per day
- B. A worker sews 10 buttons per hour
- C. A machine produces 100 widgets per day
- D. A factory makes 1,000 cupcakes a day
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Capacity can be measured asinput(amount of input resource the system can accept) oroutput(units produced).
Refinerythroughput stated in barrels of crude oilis aninput-basedexpression; the other options express output. (CIPS L5M10 Study Guide, p. 107)
NEW QUESTION # 31
Which of the following scenarios would an MRP system struggle to cope with?
- A. Improving the response time to customer queries
- B. Reducing inventory costs for the business
- C. Changes in requirements from customers
- D. Changes in prices of raw materials
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRPassumes relatively stable, planned demand and lead times. It is less effective when there arefrequent late changes(e.g., sudden customer requirement changes), supplier delays, or machine breakdowns, because it is not inherently reactive in real time. (CIPS L5M10 Study Guide, p. 188)
NEW QUESTION # 32
Mobile Ltd offers customers £50 to return old or broken phones. What is the most likely reason?
- A. Re-manufacture
- B. Reuse
- C. Recycle
- D. Recovery
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
"Recovery" focuses on extractingvaluable materials(e.g., precious metals) from returned items. For broken phones, recovery is often most economical versus full remanufacture. (CIPS L5M10 Study Guide, p. 191)
NEW QUESTION # 33
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?
- A. Collaborative Planning, Forecasting and Replenishment (CPFR)
- B. Warehouse Management System
- C. Data Warehousing
- D. Six Sigma
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
CPFRpromotescollaborative data sharingand 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)
NEW QUESTION # 34
Which approach aims to increase profits by maximising the performance ofconstraints?
- A. Theory of Constraint
- B. Six Sigma
- C. Total Quality Management
- D. Lean
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheTheory of Constraint (TOC)is built on the ideas that every process has abottleneckand that improving throughput requiresexploiting/elevating that constraint(while subordinating other steps). (CIPS L5M10 Study Guide, p. 138)
NEW QUESTION # 35
Which of the following is a key driver of reverse logistics?
- A. Increased prices of raw materials to the manufacturer
- B. Free returns offered to customers who buy online
- C. An increase in the manufacturing of faulty goods
- D. Increased demand within the retail sector
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The growth ofe-commerce free-returns policieshas significantly increasedreturn volumes, making it a major driver of reverse logistics activity and cost. (CIPS L5M10 Study Guide, p. 190)
NEW QUESTION # 36
Select from the following list the example ofreverse logistics.
- A. A supplier provides an additional delivery of items to the buyer
- B. A distribution centre sends goods to several retail units using the same delivery truck
- C. The manufacturer sends completed goods to the customer
- D. A retail outlet returns faulty goods to the manufacturer
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Reverse logistics involves goods movingupstreamin the supply chain-typically from customers back to the manufacturer or supplier-for return, repair, reuse, or recycling. Returning faulty goods to a manufacturer is a textbook example.
(Reference: CIPS L5M10 Study Guide, Reverse logistics definition and examples, p. 189)
NEW QUESTION # 37
Martin Christopher argues that Competitive Advantage is formed through the management of which THREE aspects?
- A. Company
- B. Cost
- C. Competitors
- D. Customer
- E. Creditors
Answer: A,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Martin Christopher'sThree Cs modelemphasises achieving competitive advantage through balancing and managing theCompany,Customer, andCompetitors. These must be aligned to deliver superior value and sustained differentiation.
(Reference:CIPS L5M10 Study Guide, Christopher's Three Cs model, p. 59)
NEW QUESTION # 38
Which of the following is a type of 2D barcode that can hold large amounts of data and is commonly used by airlines for boarding passes?
- A. UPC
- B. PDF417
- C. QR Code
- D. Codabar
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
PDF417is a 2D stacked barcode capable of storing large data sets, widely used inaviation (boarding passes) and logistics labels.
(Reference: CIPS L5M10 Study Guide, Barcode types and uses, p. 75)
NEW QUESTION # 39
When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs wouldnotbe included in the calculation?
- A. Warehouse staff uniforms
- B. Insurance
- C. Obsolescence
- D. Pilferage
Answer: A
Explanation:
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)
NEW QUESTION # 40
There are five aspects to Total Supply Chain Management Costs. Which of the following isnotone of them?
- A. Supply chain related finance and planning costs
- B. Material acquisition costs
- C. Order management costs
- D. Overhead costs
- E. Inventory carrying costs
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Total Supply Chain Cost (TSCC)covers five areas:
* Order management,
* Material acquisition,
* Inventory carrying,
* Supply chain IT systems,
* Supply chain finance and planning costs.Overheads(e.g., admin, utilities) are general business expenses, not TSCC elements.(Reference: CIPS L5M10 Study Guide, Supply chain cost components, p.
48)
NEW QUESTION # 41
What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
- A. To save time
- B. To avoid import duty
- C. To simplify billing
- D. To reduce costs
Answer: A,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drop shippingdelivers goods directly from the manufacturer or wholesaler to the customer, bypassing retailer warehouses. This savestime(faster delivery) andcost(less handling and storage). Billing remains unchanged; import duty avoidance is not a design aim.
(Reference:CIPS L5M10 Study Guide, Customer fulfilment strategies, p. 7)
NEW QUESTION # 42
Baby Ltd manufactures 100 prams each quarter. In Q1, it sold 78 prams. A customer phones in March to order
3 prams for the following month. Is thereAvailability to Promise (ATP)?
- A. Maybe - it depends on the number of customer orders already received for Q2
- B. Maybe - the customer must wait until Q2 to be sure
- C. Yes - 100 prams will be manufactured in Q2 so the customer can order one of these
- D. Yes - 22 prams were unsold last quarter
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Availability to Promise (ATP) is the portion of inventory or planned production that is not yet committed to existing customer orders. It depends on confirmed orders and forecasted production. Without knowing Q2's confirmed demand, ATP cannot be guaranteed.
(Reference: CIPS L5M10 Study Guide, ATP definition and application, p. 182)
NEW QUESTION # 43
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
- A. Current stock levels
- B. Firm customer orders
- C. Price of the materials
- D. Forecast demand
- E. Company balance sheet
Answer: A,B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheMPSis driven byforecast demand,firm customer orders, andcurrent inventory/availabilityto decide what, how much, and whento make. Financial statements and prices are not direct inputs to the MPS. (CIPS L5M10 Study Guide, p. 180)
NEW QUESTION # 44
Oracle and SAP are examples of which type of system?
- A. ERP
- B. MRP
- C. SCM
- D. JIT
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Enterprise Resource Planning (ERP) platforms integrate multiple enterprise functions (e.g., finance, procurement/supply, manufacturing, HR, customer service) into a single system and database. Oracle and SAP are cited as leading ERP vendors. (Reference: CIPS L5M10 Study Guide, ERP overview and scope, p.
73)
NEW QUESTION # 45
What is the name given to an additional file attached to an inventory file that links a requirement to the specific order or component that triggered it?
- A. Bill of materials
- B. CSV file
- C. Peg record
- D. Requirement record
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Apeg recordprovides "pegging," i.e., a traceable link betweendemand(e.g., a customer order/MPS line) and the specificsupplycreated to satisfy it. (CIPS L5M10 Study Guide, p. 186)
NEW QUESTION # 46
Which of the following standards apply to the use of RFID and other digital data structures regardingpersonal privacy and data collection?
- A. ISO 20248
- B. ISO 9001
- C. ISO 20400
- D. ISO 14001
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ISO 20248definesdata structures and digital signature meta-structuresfor AIDC technologies like barcodes and RFID, addressing authentication, privacy, and traceability.
(Reference: CIPS L5M10 Study Guide, RFID standards and compliance, p. 85)
NEW QUESTION # 47
Strategic planning is long-term planning, usually over 5-10 years in the future. Is this sentence correct?
- A. Yes - the longer the strategic plan, the less detail it will include
- B. No - long-term plans are tactical rather than strategic
- C. No - strategic plans detail the objectives of the organisation over the upcoming year
- D. Yes - strategic plans have more detail than short-term plans
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Strategy deals with long-term direction and typically contains broad objectives with lower detail; tactical (mid- term) and operational (short-term) plans add specificity and detail. Therefore, longer-horizon strategic plans contain less operational detail than short-term plans. (Reference: CIPS L5M10 Study Guide, Planning horizons-strategic/tactical/operational, pp. 99-100)
NEW QUESTION # 48
The Supply Chain Module of an ERP (Enterprise Resource Planning) system would typically include which of the following elements? Select THREE.
- A. Customer relationship management
- B. Warehouse management
- C. Transport management
- D. Demand planning
- E. Finance management
Answer: B,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheSupply Chain modulewithin ERP systems managestransport,demand planning, andwarehouse operations. Other ERP modules handle finance and CRM separately.
(Reference: CIPS L5M10 Study Guide, ERP systems and supply chain integration, p. 73)
NEW QUESTION # 49
There are several types of incentives to encourage household recycling. Of the below, which is an example of a 'buy back'?
- A. A customer part-exchanges their vehicle for a new car
- B. A customer is offered free collection of waste material after the delivery of construction items
- C. A company offers money for used copper pipes during a renovation project in which they're replaced
- D. A customer pays a deposit for an item which is returned when the product packaging is returned
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Abuy-back schemeinvolves a companypurchasing used materialsfrom consumers for reuse, recovery, or recycling - e.g., paying for returned copper pipes.
Other incentive types:
* Deposit schemes(option B) - refunds when packaging is returned.
* Free collection(option C) - logistical support incentive.
* Trade-in(option D) - part-exchange schemes.(Reference:CIPS L5M10 Study Guide, Incentives for household recycling, pp. 194-195)
NEW QUESTION # 50
PLM manages large distribution centres. Goods are not stored when delivered but are prepared immediately for shipment to retail outlets. What type of system is this?
- A. Distribution channelling
- B. Distribution resource planning
- C. Pull-through distribution
- D. Cross docking
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cross docking (XDK)involves transferring inbound goods directly to outbound transport without long-term storage, reducing handling, time, and warehousing costs. It requires tight coordination between transport and order schedules.
(Reference:CIPS L5M10 Study Guide, Cross docking and distribution centre operations, p. 24)
NEW QUESTION # 51
Which of the following is a key driver of reverse logistics?
- A. Increased prices of raw materials to the manufacturer
- B. Free returns offered to customers who buy online
- C. An increase in the manufacturing of faulty goods
- D. Increased demand within the retail sector
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The growth ofe-commerce free-returns policieshas significantly increasedreturn volumes, making it a major driver of reverse logistics activity and cost. (CIPS L5M10 Study Guide, p. 190)
NEW QUESTION # 52
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