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NEW QUESTION # 53
Jerry works in product development at a clothing manufacturer. The company is discussing ways of adding value for customers. Jerry suggestsreducing pricescould be a form of added value. Is he correct?
- A. Yes - this is a form of added value but requires the ability of the supply chain to reduce costs.
- B. No - added value is only a form of innovation.
- C. Yes - this will increase the company's profit margin.
- D. No - as the customer is not offered anything additional to their purchase.
Answer: A
Explanation:
Added Valuearises whenever the customer perceives extra benefit.Lowering pricescan add value if the supply chain reduces coststo support it sustainably.
Short cited term: "price reduction is a form of added value if supported by cost efficiencies." (L5M7 Study Guide, p. 35) Reference:CIPS L5M7 Study Guide, p. 35.
NEW QUESTION # 54
An organisation with amarket-orientated approachto competitive advantage would have which feature?
- A. The customer comes first
- B. Large workforce
- C. High expectations of staff
- D. Detailed specifications
Answer: A
Explanation:
Amarket-oriented approachcentres oncustomer 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) Reference:CIPS L5M7 Study Guide, p.55.
NEW QUESTION # 55
Joe is a Supply Chain Manager at a car manufacturer in the UK. He plansrationalisationto streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.
- A. Collaborative inventory management
- B. Tier-skipping
- C. Reducing the number of suppliers
- D. Customisation
- E. Supplier innovation
Answer: B,C
Explanation:
Rationalisationincludesreducing supplier numbersand practices such astier-skippingto simplify the network and reduce cost/complexity. Short extract: "rationalisation-reduce supplier base; consider tier- skipping." (L5M7 Study Guide, p.11) Reference:L5M7 Study Guide, p.11.
NEW QUESTION # 56
An organisation can leverage effective Supply Chain Management to deliverCompetitive Advantage. What is meant byCompetitive Advantage?
- A. Becoming the leader in the marketplace through working closely with the supply chain
- B. Outperforming competitors financially
- C. Cost savings by narrowing the supply chain
- D. A benefit that an organisation can use to outperform competitors in the marketplace
Answer: D
Explanation:
Competitive advantageis adistinct capabilitythat allows an organisation tooutperform its rivals, whether through cost efficiency, quality, innovation, or service.
Short cited term: "advantage that enables outperforming competitors" (L5M7 Study Guide, p. 2).
Reference:CIPS L5M7 Study Guide, p. 2.
NEW QUESTION # 57
Six Sigmais only suitable for the manufacturing industry. Is this correct?
- A. Yes - it reduces defects in the supply chain
- B. No - it's not suitable for manufacturing
- C. No - it can be used across all industries and delivers bottom-line savings
- D. Yes - it's an excellent way to reduce costs
Answer: C
Explanation:
Six Sigmaapplies universally tomanufacturing, services, and administrative processes, improving quality and efficiency.
Short cited term: "applicable across all sectors to improve process performance." (L5M7 Study Guide, p. 154) Reference:CIPS L5M7 Study Guide, p. 154.
NEW QUESTION # 58
Long runs, stable product design, and inventory buffers are objectives of which business function?
- A. Manufacturing
- B. Sourcing
- C. Sales
- D. Logistics
Answer: A
Explanation:
Manufacturing objectivesemphasise efficiency throughlong production runs,stable design, andinventory bufferingto ensure continuity of output.
Short cited term: "manufacturing - long runs and inventory buffer." (L5M7 Study Guide, p. 36) Reference:CIPS L5M7 Study Guide, p. 36.
NEW QUESTION # 59
A pricing approach in which avalue pointis decided upon and maintained for aprescribed periodis known as what?
- A. Fixed Pricing
- B. Variable Pricing
- C. Cost-Plus Pricing
- D. Competitive Pricing
Answer: A
Explanation:
Fixed pricingmaintains aconstant pricefor 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)
Reference:CIPS L5M7 Study Guide, p.188.
NEW QUESTION # 60
Which of the following tactics helps organisations in the middle of a supply chain protect themselves from the Bullwhip Effect?
- A. Have buffer stock
- B. Trade in a strong currency
- C. Employ a younger workforce
- D. Conduct due diligence on lower-tier suppliers
Answer: A
Explanation:
TheBullwhip Effectdescribes amplified demand fluctuations up the supply chain;buffer stockmitigates shortages caused by sudden demand changes.
Short cited term: "buffer stock helps counter demand fluctuation" (L5M7 Study Guide, p. 4).
Reference:CIPS L5M7 Study Guide, p. 4.
NEW QUESTION # 61
What doesISO 9001refer to?
- A. Supply chain management
- B. Quality management
- C. Environment management
- D. Risk management
Answer: B
Explanation:
ISO 9001sets the framework forquality management systems(QMS), based on principles such as customer focus, leadership, and improvement. Short extract: "ISO 9001-quality management." (L5M7 Study Guide, p.122) Reference:L5M7 Study Guide, p.122.
NEW QUESTION # 62
ACost Leaderis able to lower the price of an item or material within the marketplace. Is this true?
- A. No - a cost leader has no influence on market price
- B. Yes - they are able to lower prices but not increase them
- C. No - a cost leader holds the largest market share and never reduces prices
- D. Yes - they set a price standard as well as lowering prices
Answer: D
Explanation:
ACost Leaderdetermines the market price standard and can influence both price reductions and increases.
Their efficiency allows them to lead pricing trends.
Short cited term: "cost leader sets price standard in market." (L5M7 Study Guide, p. 179) Reference:CIPS L5M7 Study Guide, p. 179.
NEW QUESTION # 63
Which of the following relationship styles is theleast collaborative?
- A. Strategic alliance
- B. Arm's-length
- C. Outsourced
- D. Transactional
Answer: B
Explanation:
On the relationship spectrum,arm's-lengthis alow-collaborationstyle (onlyadversarialis lower), characterised by limited information sharing and short-term focus. Short cited term: "relationship spectrum ...
arm's-length (low collaboration)" (L5M7 Study Guide, p.80).
Reference:CIPS L5M7 Study Guide, p.80.
NEW QUESTION # 64
Which approach to quality involvesmanufacturing only what is required, when it is required?
- A. Total Quality Management
- B. Just-in-Time
- C. Total Quality Control
- D. Zero Defects
Answer: B
Explanation:
Just-in-Time (JIT)manufacturing produces goodsonly when required, eliminating excess inventory and waste, ensuring smooth, efficient flow.
Short cited term: "make only what is needed, when needed" (L5M7 Study Guide, p. 30).
Reference:CIPS L5M7 Study Guide, p. 30.
NEW QUESTION # 65
Anagilesupply chain focuses on the elimination of waste. Is this true?
- A. Yes - an agile supply chain reduces waste and defects
- B. Yes - it introduces TQM to remove inefficiencies
- C. No - it focuses on responsiveness to changing customer demand
- D. No - it incorporates continuous improvement until errors cease
Answer: C
Explanation:
Agilesupply chains prioritiseflexibility and responsivenessto change, whereasLeanfocuses on waste elimination.
Short cited term: "agile = responsive to demand; lean = waste removal." (L5M7 Study Guide, p. 155) Reference:CIPS L5M7 Study Guide, p. 155.
NEW QUESTION # 66
RIDDORstatistics provide information on which of the following?
- A. Conformance with specification
- B. Speed of production
- C. Financial standing
- D. Health and safety
Answer: D
Explanation:
RIDDOR(Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) relates tohealth and safetyperformance measurement-tracking workplace incidents and compliance.
Short cited extract: "RIDDOR statistics relate to health and safety reporting." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 67
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Flexibility for support and maintenance
- B. Less environmental impact
- C. Higher quality
- D. Higher costs
- E. Cheaper
Answer: A,B
Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.
NEW QUESTION # 68
The effective balancing ofdemand variabilityandinventorythat achieves the optimal time a product passes through the supply chain is known as:
- A. Cycle Time
- B. Just-in-Time
- C. Lean Manufacturing
- D. The Theory of Swift, Even Flow
Answer: D
Explanation:
TheTheory of Swift Even Flowstates that organisational efficiency improves as the flow of materials, information, and cash becomessmooth and consistentthrough the chain.
Short cited term: "balancing demand and inventory to achieve swift, even flow." (L5M7 Study Guide, p. 37) Reference:CIPS L5M7 Study Guide, p. 37.
NEW QUESTION # 69
Data needs to be collected, measured, and analysed to ensure quality in processes. Which of the following should the data be?
- A. Time-bound, Detailed, and Impartial
- B. Quick, Relevant, and Measurable
- C. Achievable, Time-bound, and Qualitative
- D. Specific, Measurable, Achievable
Answer: D
Explanation:
Effective quality measurement requiresSMART 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)
Reference:CIPS L5M7 Study Guide, p.140.
NEW QUESTION # 70
Mark, a logistics procurement manager, describes his chain astightly coupled. What does this mean?
- A. There is a high level of interdependency in the supply chain
- B. There is flexibility in the supply chain
- C. The supply chain is strong
- D. There are many organisations in the supply chain
Answer: A
Explanation:
Atightly coupledsupply chain exhibitshigh interdependencebetween members; decisions by one partner affect all others.
Short cited extract: "Tightly coupled = high interdependence between supply-chain partners." (L5M7 Study Guide, p. 82) Reference:CIPS L5M7 Study Guide, p. 82.
NEW QUESTION # 71
Which of the following can have adetrimental effecton supply-chain relationships?Select TWO.
- A. Low spend
- B. Mistrust
- C. Lack of feedback
- D. Market segment
Answer: B,C
Explanation:
Relationship effectiveness is damaged bymistrustand poorfeedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: "trust," "communication/feedback" (L5M7 Study Guide, p.93).
Reference:CIPS L5M7 Study Guide, p.93.
NEW QUESTION # 72
In a typicalSupply Chain Quality Framework (SCQF), which of the following characteristics is likely to feature?
Select THREE.
- A. Information
- B. Procurement
- C. Continuous Improvement
- D. Marketing
- E. Sustainability
Answer: A,C,E
Explanation:
TheSCQFintegrates factors that promote long-term excellence across the chain:leadership, stakeholder commitment, sustainability, information management, and continuous improvement. These underpin effective quality and performance.
Short cited term: "key features include sustainability, information and continuous improvement." (L5M7 Study Guide, p. 34) Reference:CIPS L5M7 Study Guide, p. 34.
NEW QUESTION # 73
Which of the following is an example of aclosed-loopsupply chain?
- A. A retailer which accepts old phones to be given back to the manufacturer
- B. A farm supplying milk to a dairy manufacturer
- C. The extraction of diamonds from a mine sold to a jewellery manufacturer
- D. The sale of second-hand cars at a retail outlet
Answer: A
Explanation:
Aclosed-loop supply chainreturns used products to the chain forreuse/recycling/remanufacture. Short extract: "closed loop - products/materials re-enter the supply chain." (L5M7 Study Guide, pp.5-7) Reference:L5M7 Study Guide, pp.5-7.
NEW QUESTION # 74
A company which usesClient Experience Strategyas part of its marketing tactic would provide which of the following?
Select TWO.
- A. Provide a website
- B. Lower prices
- C. Personalise the user experience
- D. Listen to customer feedback
Answer: C,D
Explanation:
AClient Experience Strategyfocuses on enhancing theend-to-end customer journeyby understanding customer needs, personalising interactions, and incorporating feedback.
Short cited extract: "Customer experience strategy includes listening to feedback and personalising interactions." (L5M7 Study Guide, p.183) Reference:CIPS L5M7 Study Guide, p.183.
NEW QUESTION # 75
SRT Ltd, a national construction firm, has acentralised procurement function. What is an advantage of this?
- A. Coordination of cost-reduction initiatives and bulk ordering
- B. Increased flexibility
- C. Closer to stakeholders
- D. Stakeholder management
Answer: A
Explanation:
Centralised procurementenables bettercost coordination, standardisation, and leverage through bulk purchasing, ensuring consistency across sites.
Short cited extract: "Centralised structures coordinate savings and achieve economies of scale." (L5M7 Study Guide, p. 69) Reference:CIPS L5M7 Study Guide, p. 69.
NEW QUESTION # 76
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