Updated May 15, 2026 L5M7 Exam Dumps - PDF Questions and Testing Engine
New (2026) CIPS L5M7 Exam Dumps
NEW QUESTION # 22
RIDDORstatistics provide information on which of the following?
- A. Conformance with specification
- B. Financial standing
- C. Speed of production
- 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 # 23
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Cheaper
- B. Flexibility for support and maintenance
- C. Higher quality
- D. Less environmental impact
- E. Higher costs
Answer: B,D
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 # 24
Which of the following is an example ofexceedingcustomers' expectations? Select TWO.
- A. The price is lower than the customer expected to pay
- B. Providing a free gift when a purchase is made
- C. A customer orders an item online and it is delivered on the expected day
- D. Providing the item desired in a different colour
Answer: A,B
Explanation:
Meeting expectations (B) is not exceeding them. Exceeding is demonstrated byunexpected extra valuesuch as lower-than-expected priceora free add-on. Short extract: "exceeding expectations-delighting customers with additional/unexpected value." (L5M7 Study Guide, p.121) Reference:L5M7 Study Guide, p.121.
NEW QUESTION # 25
Which of the following is an example of aCapital Expenditurefor a private healthcare facility?
- A. Nurse's Salary
- B. MRI Machine
- C. Cleaning Products
- D. Medicine
Answer: B
Explanation:
Capital expenditure (CapEx)coverslong-term investmentssuch as equipment or infrastructure that deliver value over time-e.g., MRI scanners. Operating costs (OpEx) include salaries and consumables.
Short cited extract: "CapEx - major assets and equipment; OpEx - running costs such as wages." (L5M7 Study Guide, Domain 3.2) Reference:CIPS L5M7 Study Guide, Domain 3.2.
NEW QUESTION # 26
Which of the following isNOTan objective ofTotal Quality Management (TQM)?
- A. Employee empowerment
- B. Zero-defects
- C. Financial planning
- D. Meeting customer expectations
Answer: C
Explanation:
TQM objectives focus oncustomer satisfaction, zero defects, and employee engagement, not financial planning.
Short cited extract: "TQM aims: customer focus, zero defects, continuous improvement - not financial planning." (L5M7 Study Guide, p. 112) Reference:CIPS L5M7 Study Guide, p. 112.
NEW QUESTION # 27
Within the supply chain, which of the following isnot considered a 'flow'?
- A. Decision flow
- B. Financial flow
- C. Information flow
- D. Materials flow
Answer: A
Explanation:
Supply chains are characterised bythree primary flows- materials, information, and finance. "Decision flow" is not a recognised category.
Short cited term: "three main flows: material, information, finance." (L5M7 Study Guide, p. 155) Reference:CIPS L5M7 Study Guide, p. 155.
NEW QUESTION # 28
A car manufacturer that accommodatesunique and desirable featuresinto design at a premium cost is using which of the following strategies?
- A. Cost Focus
- B. Cost Leadership
- C. Customer Experience
- D. Differentiation
Answer: D
Explanation:
Differentiation Strategyinvolves offering products withunique attributesthat customers value and are willing to pay more for, thus achieving competitive advantage.
Short cited term: "differentiation - unique product features at premium price." (L5M7 Study Guide, p. 177) Reference:CIPS L5M7 Study Guide, p. 177.
NEW QUESTION # 29
Which is the correct order that ensures quality is achieved in a business process?
- A. Plan, Check, Do, Act
- B. Check, Act, Plan, Do
- C. Plan, Do, Check, Act
- D. Check, Do, Act, Plan
Answer: C
Explanation:
ThePDCA Cycle-Plan, Do, Check, Act-provides a structured approach tocontinuous quality improvement. It begins with planning, implementing, monitoring, and then acting to refine the process.
Short cited extract: "The PDCA cycle - Plan, Do, Check, Act - underpins continuous improvement." (L5M7 Study Guide, p.129) Reference:CIPS L5M7 Study Guide, p.129.
NEW QUESTION # 30
ABC produces electronics in a highly competitive, fast-changing market. Which supply chain strategy should ABC employ?
- A. Responsive
- B. Lean
- C. Agile
- D. Just-in-Time
Answer: C
Explanation:
AnAgilesupply chain prioritisesflexibility and responsivenessto customer and market changes-ideal for dynamic industries like electronics.
Short cited extract: "Agility = rapid response to changing demand." (L5M7 Study Guide, p.155) Reference:CIPS L5M7 Study Guide, p.155.
NEW QUESTION # 31
What doesISO 9001refer to?
- A. Quality management
- B. Risk management
- C. Environment management
- D. Supply chain management
Answer: A
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 # 32
Plastic Fantastic Ltd manufactures plastic homeware. Customers can return used products to the retailer, who passes them back to the manufacturer for reprocessing. What type ofsupply chainis this?
- A. Open Loop Supply Chain
- B. Forward Loop Supply Chain
- C. Manufacturing Supply Chain
- D. Closed Loop Supply Chain
Answer: D
Explanation:
AClosed Loop Supply Chainreintroduces used products into the supply process forreuse, recycling, or remanufacturing, closing the product's lifecycle.
Short cited term: "closed loop - materials re-enter supply chain" (L5M7 Study Guide, pp. 5-6).
Reference:CIPS L5M7 Study Guide, pp. 5-6.
NEW QUESTION # 33
SRT Ltd, a national construction firm, has acentralised procurement function. What is an advantage of this?
- A. Stakeholder management
- B. Increased flexibility
- C. Coordination of cost-reduction initiatives and bulk ordering
- D. Closer to stakeholders
Answer: C
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 # 34
In a supply chain, can adownstream supplierinfluence all aspects of quality includingcustomer perception?
- A. Yes - customer perception is derived from the supplier's inputs and specification
- B. No - a downstream supplier has no control over quality at all
- C. No - customer perception is influenced by other functions such as marketing
- D. Yes - downstream suppliers have the most power in the chain
Answer: C
Explanation:
A downstream supplier influencesmost aspects of qualitybutnot customer perception, which is shaped by marketing and brand functions.
Short cited term: "except customer perception, influenced by marketing" (L5M7 Study Guide, p. 30).
Reference:CIPS L5M7 Study Guide, p. 30.
NEW QUESTION # 35
Which of the following describes anAdhocracyorganisational structure? Select TWO.
- A. Has a vertical structure where managers maintain control
- B. Highly documented routine processes
- C. Can respond quickly to change
- D. Highly formalised structure
- E. Low levels of centralisation
Answer: C,E
Explanation:
Anadhocracyisflexible,decentralised, and able torespond rapidlyto change, though it may lack formal control systems.
Short cited term: "low formalisation, high adaptability" (L5M7 Study Guide, p. 64).
Reference:CIPS L5M7 Study Guide, p. 64.
NEW QUESTION # 36
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 - as the customer is not offered anything additional to their purchase.
- C. No - added value is only a form of innovation.
- D. Yes - this will increase the company's profit margin.
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 # 37
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. Tier-skipping
- B. Reducing the number of suppliers
- C. Collaborative inventory management
- D. Supplier innovation
- E. Customisation
Answer: A,B
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 # 38
Which of the following statements aboutsupply chain knowledgeis correct? Select TWO.
- A. Where there is high readiness to use technology, IT use is deliberate and structured.
- B. Where supply chain knowledge is low, members tend to operate independently of others.
- C. Where supply chain knowledge is low, there is high collaboration with partners.
- D. Where technology utilisation is low, systems and policies are consistent.
Answer: A,B
Explanation:
Whenknowledge is low, members workindependently; highertechnological readinesscreates deliberate and structured IT use.
Short cited term: "low knowledge # independent working; high tech readiness # structured IT use." (L5M7 Study Guide, p. 51) Reference:CIPS L5M7 Study Guide, p. 51.
NEW QUESTION # 39
Which of the following is adisadvantageofJust-In-Time (JIT) Manufacturing?
- A. Inventories are wasteful and expensive
- B. You cannot obtain economies of scale
- C. It is expensive to implement
- D. There is less waste produced
Answer: B
Explanation:
JIT removes stockholding benefits, meaning firmslose economies of scalefrom bulk ordering. Each order is small and frequent.
Short cited term: "JIT limits bulk economies due to reduced inventory." (L5M7 Study Guide, p. 159) Reference:CIPS L5M7 Study Guide, p. 159.
NEW QUESTION # 40
When would you use aFishbone (Ishikawa) Diagram?
- A. To clarify a relationship
- B. To identify the cause of a problem
- C. To map issues in the supply chain
- D. To decide which supplier to use
Answer: B
Explanation:
AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).
Short cited term: "used to identify root causes of problems." (L5M7 Study Guide, p. 126) Reference:CIPS L5M7 Study Guide, p. 126.
NEW QUESTION # 41
Which of the following could be consideredadded valuewithin a supply chain? Select THREE.
- A. Innovation
- B. Time to market
- C. Quality
- D. Profit
- E. Marketing
Answer: A,B,C
Explanation:
The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: "added value may be created through quality, innovation and time-to-market." (L5M7 Study Guide, p.27) Reference:L5M7 Study Guide, p.27.
NEW QUESTION # 42
Supplier vettingis a form of which type of quality management system?
- A. Quality assurance
- B. Quality inspection
- C. Lean
- D. Six Sigma
Answer: A
Explanation:
Quality assurance (QA)isproactive, including activities such assupplier approval/vetting;inspectionis reactive sampling of outputs. Short extract: "QA-proactive systems e.g., supplier approval; inspection- sampling outputs." (L5M7 Study Guide, p.123) Reference:L5M7 Study Guide, p.123.
NEW QUESTION # 43
Sandy has been asked to collectprimary dataon manufacturing defects and their effect on profits. She decides to send aquestionnaireto staff. Is this correct?
- A. Yes - staff will know all the answers
- B. No - a questionnaire will not provide useful information
- C. No - she should research online about defaults
- D. Yes - a questionnaire is a form of primary data
Answer: D
Explanation:
Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy's approach aligns with primary data collection methods.
Short cited extract: "Primary data: original research such as questionnaires and interviews." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 44
The5S Methodologyis an organisational system to ensure workplace cleanliness and efficiency. Under which principle does it fall?
- A. Lean
- B. Total Quality Management
- C. Quality Assurance
- D. Agile Working
Answer: A
Explanation:
The5S Methodology-Sort, Set in order, Shine, Standardise, Sustain-originates from Lean philosophy to promote efficiency and discipline in operations.
Short cited extract: "5S - a Lean technique for organisation and cleanliness in the workplace." (L5M7 Study Guide, p.166) Reference:CIPS L5M7 Study Guide, p.166.
NEW QUESTION # 45
......
Updated Verified Pass L5M7 Exam - Real Questions and Answers: https://examsdocs.lead2passed.com/CIPS/L5M7-practice-exam-dumps.html
