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L5M7 PDF Dumps Exam Questions – Valid L5M7 Dumps
NEW QUESTION # 33
Normal distributionforms what shape on a graph?
- A. Circle
- B. Horizontal line
- C. Vertical line
- D. Bell curve
Answer: D
Explanation:
ANormal Distributionforms asymmetrical bell-shaped curve, representing probability distribution around a mean.
Short cited term: "normal distribution = bell-shaped curve." (L5M7 Study Guide, p. 150) Reference:CIPS L5M7 Study Guide, p. 150.
NEW QUESTION # 34
In supply-chain management, isculturea relevant consideration?
- A. Yes - culture determines whether you wish to work with a supplier or not
- B. No - culture is impossible to define and should not be a consideration
- C. Yes - understanding culture helps achieve collaboration between organisations
- D. No - it does not matter what the culture of the supply chain is
Answer: C
Explanation:
Understandingorganisational and national culturesupports collaboration, communication, and innovation across the chain. Cultural awareness enables smoother partnerships and shared values.
Short cited extract: "Cultural understanding assists collaboration and trust within supply-chain relationships.
" (L5M7 Study Guide, pp. 58-59)
Reference:CIPS L5M7 Study Guide, pp. 58-59.
NEW QUESTION # 35
Long runs, stable product design, and inventory buffers are objectives of which business function?
- A. Sourcing
- B. Logistics
- C. Manufacturing
- D. Sales
Answer: C
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 # 36
Supplier vettingis a form of which type of quality management system?
- A. Lean
- B. Quality assurance
- C. Quality inspection
- D. Six Sigma
Answer: B
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 # 37
Kerry is a new department manager at XYZ Ltd. The company has several manufacturing divisions that serve different market segments. She is considering introducingTotal Quality Management (TQM)only in her division. Is this a good idea?
- A. No - TQM is a holistic approach and should be implemented company-wide
- B. Yes - TQM will ensure her division outperforms the other divisions
- C. Yes - staff will respond positively to the change
- D. No - TQM is not suitable in a manufacturing company
Answer: A
Explanation:
TQM is aholisticphilosophy requiringorganisation-wideadoption and leadership commitment; partial
/isolated adoption undermines results. Short cited terms: "holistic," "organisation-wide commitment" (L5M7 Study Guide, p.118).
Reference:CIPS L5M7 Study Guide, p.118.
NEW QUESTION # 38
RIDDORstatistics provide information on which of the following?
- A. Speed of production
- B. Health and safety
- C. Conformance with specification
- D. Financial standing
Answer: B
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 # 39
Six Sigmais only suitable for the manufacturing industry. Is this correct?
- A. No - it can be used across all industries and delivers bottom-line savings
- B. Yes - it's an excellent way to reduce costs
- C. Yes - it reduces defects in the supply chain
- D. No - it's not suitable for manufacturing
Answer: A
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 # 40
Sandy has been asked to collectprimary dataon manufacturing defects and their effect on profits. She decides to send aquestionnaireto staff. Is this correct?
- A. No - she should research online about defaults
- B. No - a questionnaire will not provide useful information
- C. Yes - a questionnaire is a form of primary data
- D. Yes - staff will know all the answers
Answer: C
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 # 41
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. Employ a younger workforce
- C. Conduct due diligence on lower-tier suppliers
- D. Trade in a strong currency
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 # 42
A marketplace which is described as a'red ocean'has which of the following characteristics?
- A. No competition
- B. Highly competitive
- C. Easy to enter
- D. Lots of substitute products available
Answer: B
Explanation:
ARed Oceanmarket ishighly competitivewith many firms fighting for market share, leading to price wars and reduced margins.
Short cited term: "red ocean = intense competition and saturated market." (L5M7 Study Guide, p. 179) Reference:CIPS L5M7 Study Guide, p. 179.
NEW QUESTION # 43
Which of the following could explain why an organisation chooses tooutsourcea function?
- A. Quality
- B. Control
- C. Culture
- D. Globalisation
Answer: A
Explanation:
Outsourcing can improvequalitywhen a specialist provider performs the activity better than in-house teams.
Short cited extract: "Outsourcing to specialist providers can enhance quality and performance." (L5M7 Study Guide, p. 94) Reference:CIPS L5M7 Study Guide, p. 94.
NEW QUESTION # 44
When implementingBusiness Process Re-engineering (BPR), which should be the first step?
- A. Establish customer requirements
- B. Appoint a process owner
- C. Identify and prioritise improvement opportunities
- D. Analyse and document the existing process
Answer: B
Explanation:
BPRbegins byappointing a process owner-a responsible individual to lead and oversee change before analysis or redesign begins.
Short cited extract: "Step one of BPR - appoint a process owner to take accountability." (L5M7 Study Guide, p.169) Reference:CIPS L5M7 Study Guide, p.169.
NEW QUESTION # 45
Which of the following statements aboutsupply chain knowledgeis correct? Select TWO.
- A. Where supply chain knowledge is low, members tend to operate independently of others.
- B. Where there is high readiness to use technology, IT use is deliberate and structured.
- 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 # 46
Where two organisations atdifferent levelsof the supply chain share responsibilities, resources, and performance information to serve similar end customers, what is this known as?
- A. Loose supply chain collaboration
- B. Horizontal collaboration
- C. Tight supply chain collaboration
- D. Vertical collaboration
Answer: D
Explanation:
Vertical collaborationoccursbetween different tiers(e.g., buyer-supplier) to coordinate capabilities for customer value. Short cited term: "vertical collaboration ... different levels/tiers" (L5M7 Study Guide, p.90).
Reference:CIPS L5M7 Study Guide, p.90.
NEW QUESTION # 47
The5S Methodologyis an organisational system to ensure workplace cleanliness and efficiency. Under which principle does it fall?
- A. Total Quality Management
- B. Agile Working
- C. Quality Assurance
- D. Lean
Answer: D
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 # 48
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Flexibility for support and maintenance
- B. Higher costs
- C. Higher quality
- D. Less environmental impact
- E. Cheaper
Answer: A,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 # 49
AResource-Based Review(RBR) focuses on which aspect of competitive advantage?
- A. Achieving cost leadership through lower prices
- B. Using the external environment to create value
- C. Internal environment as a driver of competitive advantage
- D. Narrowing the supply chain to create efficiencies
Answer: C
Explanation:
TheResource-Based View(RBV) argues thatunique internal resources and capabilitiesare the key to sustainable competitive advantage.
Short cited extract: "Competitive advantage stems from internal resources and capabilities." (L5M7 Study Guide, p.52) Reference:CIPS L5M7 Study Guide, p.52.
NEW QUESTION # 50
For items viewed asStrategic/Critical(high supply risk and high value), which sourcing strategy is best?
- A. Arm's-length relationship with supplier
- B. Outsourcing
- C. Partnership or alliance approach
- D. Competitive bidding
Answer: C
Explanation:
TheKraljic Matrixrecommendspartnership/alliancesfor strategic items to secure continuity, innovation, and joint value creation. Short cited term: "strategic items ... partnership" (L5M7 Study Guide, p.84).
Reference:CIPS L5M7 Study Guide, p.84.
NEW QUESTION # 51
What is the name of the phenomenon in which a small change in consumer demand can have an amplified effect throughout the supply chain?
- A. Supply and Demand
- B. Amplification Concept
- C. Bullwhip Effect
- D. Pareto Principle
Answer: C
Explanation:
The study guide describes how demand variabilityamplifies upstreamin the chain-commonly termed the
"bullwhip effect."This is introduced when explaining basic supply-chain dynamics and flows. Short extract: " demand changes become amplified upstream (bullwhip effect)." (L5M7 Study Guide, p.4) Reference:L5M7 Study Guide, p.4.
NEW QUESTION # 52
Which of the following isnota characteristic ofQuality Managementfound inISO 9001?
- A. Protection of the environment
- B. Customer focus
- C. Continuous Improvement
- D. Involvement of people
Answer: A
Explanation:
ISO 9001focuses oneight principlessuch as customer focus, leadership, and improvement.Environmental protectionbelongs underISO 14001, not 9001.
Short cited term: "environment protection covered by ISO 14001, not 9001." (L5M7 Study Guide, p. 122) Reference:CIPS L5M7 Study Guide, p. 122.
NEW QUESTION # 53
Which of the following isNOTan objective ofTotal Quality Management (TQM)?
- A. Zero-defects
- B. Employee empowerment
- C. Meeting customer expectations
- D. Financial planning
Answer: D
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 # 54
Farmer Joe sells wheat and barley. He charges more when demand is high and less when demand falls. What pricing strategy does he follow?
- A. Competitive Pricing
- B. Variable Pricing
- C. Flexible Pricing
- D. Dynamic Pricing
Answer: D
Explanation:
Dynamic Pricingadjusts prices in real time to reflectmarket demand and supply conditions, commonly used in commodities.
Short cited term: "dynamic pricing - prices adjust to demand fluctuation." (L5M7 Study Guide, p. 189) Reference:CIPS L5M7 Study Guide, p. 189.
NEW QUESTION # 55
ABC produces electronics in a highly competitive, fast-changing market. Which supply chain strategy should ABC employ?
- A. Lean
- B. Just-in-Time
- C. Responsive
- D. Agile
Answer: D
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 # 56
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