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NEW QUESTION # 29
Which of the following areadvantagesof introducing a Materials Requirements Planning (MRP) system to a business? Select TWO.
- A. More agile supply chain
- B. Reduced inventory costs
- C. Better customer service
- D. Less time spent repairing machines
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRP systems synchronise material requirements with production schedules, reducing unnecessary inventory and ensuring timely delivery-thus improving customer service and reducing carrying costs. MRP does not directly enhance machine repair or agility (which are Lean/ERP benefits).
(Reference: CIPS L5M10 Study Guide, Advantages of MRP systems, p. 188)
NEW QUESTION # 30
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. Level of customer satisfaction
- B. Seriousness of complaints
- C. Stock availability
- D. On-time delivery
- E. First-time fix rate
Answer: C,D,E
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 # 31
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 # 32
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?
- A. Quality control
- B. Monitoring and controlling deliveries
- C. Purchasing contract analysis
- D. Developing warehouse budgets
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Distribution control focuses on transport execution and delivery performance-monitoring, expediting, and controlling outbound deliveries. Purchasing contract analysis belongs tosupply/procurement control; quality control to production/quality; and warehouse budgets to warehousing control. (Reference: CIPS L5M10 Study Guide, "Controlling activities by function," p. 109)
NEW QUESTION # 33
What is the name of the common indicator, often expressed as a percentage of time when an organisation's core resource (equipment or people) is engaged in production or transformation activities?
- A. Production rate
- B. Utilisation rate
- C. Downtime rate
- D. Waiting rate
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Utilisation ratemeasures the proportion of available capacity that is actually used for productive activity. It is calculated as:
This indicator helps managers understand how efficiently facilities or resources are being used. High utilisation may indicate efficiency but could also suggest limited flexibility. (Reference:CIPS L5M10 Study Guide, Capacity utilisation and performance measures, p. 132)
NEW QUESTION # 34
A detailed list of a ship's cargo, issued as a receipt by the master of the ship to the person consigning the goods, is known as which document?
- A. Certificate of Origin
- B. Customs Declaration
- C. EUR1 Form
- D. Bill of Lading
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A Bill of Lading (B/L) serves as both a receipt for shipped goods and a document of title. It confirms carriage terms between shipper and carrier and is critical in international freight documentation. (Reference:CIPS L5M10 Study Guide, "Key transport documents," p. 44)
NEW QUESTION # 35
Which pieces of information would you require to calculate aBOM explosure? Select TWO
- A. Current inventory levels
- B. Price of the materials
- C. Lead-time of the materials
- D. Materials required to complete an order
Answer: A,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABOM explosuredetermines net requirements by expanding theBill of Materialsfor an order and offsetting it againstcurrent inventory/receiptsto find what must be procured or made. Prices and lead times are relevant for scheduling/costing, not for the netting calculation itself. (CIPS L5M10 Study Guide, p. 182)
NEW QUESTION # 36
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 # 37
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 # 38
In a logistics system, if the production rate increases, which of the following is true?
- A. The throughput time increases
- B. The workload arrival rate increases
- C. The workload arrival rate decreases
- D. The waiting rate increases
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An increase in the production rate generally leads to an increase in theworkload arrival rate- the rate at which items or tasks enter the system for processing. This relationship reflects flow interdependence between system inputs and production capacity. The relationship among production rate, throughput rate, and waiting rate is visually represented in logistics process flow diagrams.
(Reference:CIPS L5M10 Study Guide, Flow management and capacity relationships, p. 132)
NEW QUESTION # 39
Paul is a Warehouse Manager of plumbing supplies. He is planning to change the layout by placing fast- moving items near the front, slower further back, and rarely used items in separate storage. What type of system is Paul using?
- A. HML analysis
- B. VED analysis
- C. ABC analysis
- D. FSN analysis
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
FSNgroups items by movement speed:Fast-moving,Slow-moving,Non-moving. It's used to position stock for efficient access and handling based on usage frequency. (CIPS L5M10 Study Guide, p. 147)
NEW QUESTION # 40
Of the following items, which isnot recyclable?
- A. Plastic
- B. Industrial catalysts
- C. Agricultural products such as pesticides
- D. Solvents
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Agricultural products like pesticidesare classified as hazardous substances andcannot be recycled.
* Plasticsandindustrial catalystscan be recycled.
* Solventsare technically recyclable but are often not economically viable to recycle at scale.(Reference:
CIPS L5M10 Study Guide, Materials and recyclability, p. 196)
NEW QUESTION # 41
In storing which of the following inventory types are you most likely to see aFIFO (First In, First Out) system? Select TWO.
- A. Cosmetic items such as makeup
- B. Clothing items and accessories
- C. Food products
- D. High-value items such as cars or jewellery
Answer: A,C
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 # 42
"Logistics is the flow of goods along a supply chain." Is this sentence true?
- A. No - logistics is the management of suppliers
- B. Yes, but logistics also includes the flow of intangible items such as information and knowledge
- C. No - logistics is the management of supply and demand along the supply chain
- D. Yes - logistics is the flow of goods, but only downwards along the supply chain
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Logistics encompasses the efficient flow and storage of goods, services, and related information from origin to consumption. It is not limited to physical goods or one direction; information and knowledge flows are integral. (Reference: CIPS L5M10 Study Guide, definition and scope of logistics, p. 3)
NEW QUESTION # 43
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 # 44
Systems which prevent issues that are likely to occur in the future, and which include preventative maintenance for machinery, are commonly known as what type of control system? Select TWO
- A. Preventative control
- B. Feedback control
- C. Feedforward control
- D. Concurrent control
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Feedforward (preventative) controlanticipates and prevents deviations before they occur (e.g., scheduled maintenance). This contrasts withconcurrent(controls during the activity) andfeedback(after-the-fact correction). (CIPS L5M10 Study Guide, pp. 101-102)
NEW QUESTION # 45
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