2026 L5M10 Question Bank: Free PDF Download Recently Updated Questions
L5M10 Certification Exam Dumps with 91 Practice Test Questions
CIPS L5M10 Exam Syllabus Topics:
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NEW QUESTION # 30
In which circumstance does the supplier hold the power in negotiations?
- A. Low-value contract, low market risk
- B. High-value contract, low market risk
- C. High-value contract, low market risk
- D. Low-value contract, high market risk
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The supplier positioning/power matrix shows supplier power increases when the buyer's spend is low (low value to the supplier) and market risk is high (limited alternatives, volatility). Buyer power is strongest with high contract value and low market risk. (Reference: CIPS L5M10 Study Guide, Supplier Positioning Model and power dynamics, p. 71)
NEW QUESTION # 31
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
- A. They own all of their own shipping vessels
- B. They are generally cheaper to use than traditional logistics companies
- C. They provide documentation such as the Bill of Lading
- D. They undertake transportation by air, land, or water
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An NVOCC functions as a legal carrier issuing Bills of Lading but doesnotown or operate vessels. They arrange shipping with vessel operators on behalf of clients. Their role focuses on consolidation, documentation, and legal responsibility for the cargo. (Reference:CIPS L5M10 Study Guide, Maritime logistics and NVOCC, p. 43)
NEW QUESTION # 32
Whether a company should implement a Lean or Agile supply chain should be considered as part of which organisational document?
- A. Strategic plan
- B. Logistic plan
- C. Operational plan
- D. Tactical plan
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ChoosingLean vs. Agileis a long-term, structural design decision and is addressed instrategic planning.
Tactical and operational plans translate strategy into mid- and short-term actions. (CIPS L5M10 Study Guide, p. 100)
NEW QUESTION # 33
In an organisation that has implemented the Theory of Constraint in manufacturing, which of the following is true?
- A. Inventory is not held
- B. Inventory is held by the customer
- C. Inventory is seen as a liability
- D. Inventory is seen as an asset
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
WithinTOC,inventory is treated as a liability(it ties up cash and can hide flow problems), contrasting with traditional accounting that books inventory as an asset. (CIPS L5M10 Study Guide, pp. 141-142)
NEW QUESTION # 34
Oracle and SAP are examples of which type of system?
- A. SCM
- B. JIT
- C. ERP
- D. MRP
Answer: C
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 # 35
A Transport Management System (TMS) comprises several functions. Which of the following is NOT one of these?
- A. Planning and decision-making
- B. Transport execution
- C. Measurement and reporting
- D. Fleet maintenance
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Core TMS functions typically include: planning & decision-making (e.g., carrier/route selection), transport execution (e.g., tendering, dispatch), transport follow-up/visibility, and measurement & reporting (KPIs).
Fleet maintenance is generally a separate fleet/asset management function, not a standard TMS core function.
(Reference: CIPS L5M10 Study Guide, TMS functions, p. 91)
NEW QUESTION # 36
There are several types of incentives to encourage household recycling. Of the below, which is an example of a 'buy back'?
- A. A company offers money for used copper pipes during a renovation project in which they're replaced
- B. A customer pays a deposit for an item which is returned when the product packaging is returned
- C. A customer part-exchanges their vehicle for a new car
- D. A customer is offered free collection of waste material after the delivery of construction items
Answer: A
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 # 37
Hazardous waste such as asbestos or radioactive material presents additional reverse logistics complications.
In these cases, what type of return is used?
- A. Product defect return
- B. End-of-life return
- C. Product recall
- D. Recycle return
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
End-of-life returns occur when a product cannot be repaired, reused, or recycled safely and must be disposed of in line with legal and environmental regulations. Hazardous waste (e.g., asbestos) falls under this category due to safety requirements. (Reference:CIPS L5M10 Study Guide, Reverse logistics-types of returns, p. 193)
NEW QUESTION # 38
Dasap Group Ltd has hired a third-party logistics organisation (3PL) to manage some aspects of their business. Which of the following business functions would you expect a 3PL company to manage on behalf of Dasap Group Ltd? Select THREE.
- A. Management of the receipt of customer orders
- B. Production of sales reports
- C. Operation of the distribution centre
- D. Manage the delivery of items through a transport fleet
- E. Management of customer complaints
Answer: A,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A3PL (Third-Party Logistics)provider can manage operational logistics functions such asorder receipt and processing,distribution centre operations, andtransport management(fleet, routing, delivery). Customer complaints and sales reports remain the client's responsibility.
(Reference: CIPS L5M10 Study Guide, Outsourced logistics and 3PL services, p. 33)
NEW QUESTION # 39
Bradbury's Ltd manufactures chocolate and uses an ERP system. Which of the following would be included in theMaster Production Schedule (MPS)?
- A. The profit margin of each chocolate bar
- B. The full list of ingredients to order
- C. The rate at which chocolate must be produced in Q1
- D. The number of customers served by Bradbury's
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The MPS defineswhatproducts will be made,in what quantities, andwhen. It is driven by sales forecasts, existing inventory, and resource capacity. Ingredients (A) are part of the Bill of Materials, not the MPS.
(Reference: CIPS L5M10 Study Guide, Master Production Scheduling, p. 180)
NEW QUESTION # 40
Omar is forecasting future demand. Normally he uses three years of sales data, but this year he's been asked to include data back to 2004. Which forecasting technique is he using?
- A. Simple linear regression
- B. Exponential smoothing technique
- C. Moving average technique
- D. Time series method
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Exponential smoothing gives progressively less weight to older data but uses the entire historical dataset to forecast future demand. Moving averages, by contrast, use a fixed number of recent periods. (Reference: CIPS L5M10 Study Guide, Demand forecasting methods, p. 157)
NEW QUESTION # 41
Customer service levels can be measured using Service Level Agreements (SLAs). Which of the following are "hard" measures typically found in an SLA? Select THREE
- A. Stock availability
- B. Level of customer satisfaction
- C. First-time fix rate
- D. On-time delivery
- E. Seriousness of complaints
Answer: A,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
"Hard" measures are objective, quantifiable performance indicators-typical logistics/service measures include stock availability, first-time fix rate, and on-time delivery. Measures such as complaint seriousness and perceived satisfaction are "soft" (more subjective) but still useful. (Reference: CIPS L5M10 Study Guide, SLAs-hard vs soft measures, p. 60)
NEW QUESTION # 42
Strategic planning is long-term planning, usually over 5-10 years in the future. Is this sentence correct?
- A. No - strategic plans detail the objectives of the organisation over the upcoming year
- B. Yes - strategic plans have more detail than short-term plans
- C. No - long-term plans are tactical rather than strategic
- D. Yes - the longer the strategic plan, the less detail it will include
Answer: D
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 # 43
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?
- A. It is cheap to introduce
- B. It replaces emails
- C. It simplifies the supply chain
- D. It allows humans to check the work for accuracy
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)
NEW QUESTION # 44
The 'Drum, Buffer, Rope' technique helps to solve which issue in manufacturing?
- A. Redundant inventory
- B. Poor forecasting
- C. Fluctuations in prices
- D. Bottlenecks
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drum-Buffer-Rope (DBR) is a Theory of Constraints scheduling method designed to synchronise flow at the constraint("drum"), protect downstream operations with abuffer, and control release via therope. Its primary purpose is to manage and relievebottlenecksso overall throughput improves. (CIPS L5M10 Study Guide, p.
143)
NEW QUESTION # 45
"Pick and Pack" is a warehouse management system (WMS) functionality detailing how items should be picked to fulfil customer orders. Which of the following are types of pick paths that can be programmed into a WMS? Select THREE
- A. Line picking
- B. Wave picking
- C. Batch picking
- D. Rotation picking
- E. Zone picking
Answer: B,C,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Common WMS pick-path/strategy types include zone picking (pickers confined to zones), wave picking (releasing picks in waves), and batch picking (multiple orders picked in one pass). "Line picking" and
"rotation picking" are not standard WMS pick-path terms in the context used here. (Reference: CIPS L5M10 Study Guide, WMS and "pick & pack" functions, p. 88; Inventory picking strategies, LO 1.1)
NEW QUESTION # 46
In storing which of the following inventory types are you most likely to see aFIFO (First In, First Out) system? Select TWO.
- A. High-value items such as cars or jewellery
- B. Clothing items and accessories
- C. Cosmetic items such as makeup
- D. Food products
Answer: C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
FIFO ensures older stock is issued first, preventing spoilage or expiry. It's essential forperishable goods (food) andtime-sensitive stock(cosmetics). For durable goods, FIFO is less critical.
(Reference:CIPS L5M10 Study Guide, Inventory management methods and systems, p. 13)
NEW QUESTION # 47
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