L5M10 Exam Dumps Pass with Updated 2026 Certified Exam Questions
L5M10 Exam Questions - Real & Updated Questions PDF
CIPS L5M10 Exam Syllabus Topics:
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NEW QUESTION # 17
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. Production of sales reports
- B. Manage the delivery of items through a transport fleet
- C. Management of the receipt of customer orders
- D. Management of customer complaints
- E. Operation of the distribution centre
Answer: B,C,E
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 # 18
Which of the following are benefits of usingService Life-Cycle Management (SLM)? Select TWO.
- A. Accurate demand forecasting
- B. Cost savings
- C. Effective planning of resources
- D. Customer retention
Answer: C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
SLM manages services across their life cycle - including after-sales and support - improvingcustomer retentionandresource planning. While beneficial long-term, it may increase costs rather than reduce them.
(Reference: CIPS L5M10 Study Guide, Service Life-Cycle Management, p. 65)
NEW QUESTION # 19
The return logistics of consumable goods is more difficult and complex. Which of the following is an example of a consumable good?
- A. An item out of warranty
- B. An item used shortly after purchase, such as petrol
- C. Kitchen equipment used in food preparation
- D. Expensive item such as a gold ring
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Consumable goods are quickly used or depleted after purchase - e.g., petrol, food, lubricants. Their return logistics are complicated because once used, they cannot be resold or reused. (Reference:CIPS L5M10 Study Guide, Reverse logistics for consumables, p. 201)
NEW QUESTION # 20
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
- A. They undertake transportation by air, land, or water
- B. They are generally cheaper to use than traditional logistics companies
- C. They own all of their own shipping vessels
- D. They provide documentation such as the Bill of Lading
Answer: D
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 # 21
There are five aspects to Total Supply Chain Management Costs. Which of the following isnotone of them?
- A. Order management costs
- B. Supply chain related finance and planning costs
- C. Overhead costs
- D. Inventory carrying costs
- E. Material acquisition costs
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Total Supply Chain Cost (TSCC)covers five areas:
* Order management,
* Material acquisition,
* Inventory carrying,
* Supply chain IT systems,
* Supply chain finance and planning costs.Overheads(e.g., admin, utilities) are general business expenses, not TSCC elements.(Reference: CIPS L5M10 Study Guide, Supply chain cost components, p.
48)
NEW QUESTION # 22
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Government agencies
- B. Suppliers
- C. Drivers of logistics vehicles
- D. Banks and creditors
Answer: A,B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
External stakeholders in reverse logistics includesuppliers, who may receive returned goods or components, andgovernment agencies, who regulate waste handling, recycling, and environmental compliance. Banks and creditors are financial stakeholders, not operational ones, and logistics drivers are internal or connected stakeholders.
(Reference: CIPS L5M10 Study Guide, Reverse logistics stakeholders, p. 192)
NEW QUESTION # 23
Which of the following items can be classed as inventory? Select THREE
- A. Warehouses
- B. Transport vehicles
- C. Components
- D. Finished goods
- E. Work in progress
Answer: C,D,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Inventory in logistics and supply chain management refers to goods held for sale or for use in producing goods for sale, at any stage of completion. This includes raw materials/components, work-in-progress (WIP), and finished goods. Physical assets such as warehouses or vehicles are not inventory; they are resources
/capacity assets. (Reference: CIPS L5M10 Study Guide, Section on "The role of logistics and inventory," p. 3)
NEW QUESTION # 24
Baby Ltd manufactures 100 prams each quarter. In Q1, it sold 78 prams. A customer phones in March to order
3 prams for the following month. Is thereAvailability to Promise (ATP)?
- A. Yes - 22 prams were unsold last quarter
- B. Maybe - the customer must wait until Q2 to be sure
- C. Maybe - it depends on the number of customer orders already received for Q2
- D. Yes - 100 prams will be manufactured in Q2 so the customer can order one of these
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Availability to Promise (ATP) is the portion of inventory or planned production that is not yet committed to existing customer orders. It depends on confirmed orders and forecasted production. Without knowing Q2's confirmed demand, ATP cannot be guaranteed.
(Reference: CIPS L5M10 Study Guide, ATP definition and application, p. 182)
NEW QUESTION # 25
Gary's Garage fixes cars. He wants to calculate theaverage time in the system per car processed. Which indicator should he use?
- A. Waiting rate
- B. Throughput time
- C. Utilisation rate
- D. Production rate
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Throughput time(also "flow time" or "cycle time") is theaverage time an item spends in the systemfrom entry to exit, capturing processing and waiting. (CIPS L5M10 Study Guide, p. 131)
NEW QUESTION # 26
Bradbury's Ltd manufactures chocolate and uses an ERP system. Which of the following would be included in theMaster Production Schedule (MPS)?
- A. The full list of ingredients to order
- B. The rate at which chocolate must be produced in Q1
- C. The number of customers served by Bradbury's
- D. The profit margin of each chocolate bar
Answer: B
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 # 27
Helmets Ltd produces hard hats. Which of the following sentences relates to the company'scapacity?
- A. Helmets Ltd produces 120 helmets per day
- B. Helmets Ltd requires machines to run 8 hours per day
- C. Helmets Ltd turnover last year was £340,000
- D. Helmets Ltd employs 76 people
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Capacity describes therateof output that can be produced under normal operating conditions (e.g., "120 helmets per day"). Headcount or machine hours are capacityinputs, not capacity measures.
(Reference: CIPS L5M10 Study Guide, Understanding capacity and throughput, pp. 134-135)
NEW QUESTION # 28
Warehouse A has a Design Capacity that allows for 20 lorries to be unloaded per day. Which of the following is likely to be theEffective Capacityof the warehouse?
- A. Lower than the Design Capacity
- B. The same as the Design Capacity as this is determined by the layout of the warehouse
- C. Higher than the Design Capacity if workers work to their full potential
- D. Twice the Design Capacity
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Effective capacityis alwayslowerthandesign capacitydue to real-world losses (delays, staff absence, variability in unloading times). Design capacity reflects an ideal "perfect day." (CIPS L5M10 Study Guide, p.
108)
NEW QUESTION # 29
XYZ Logistics provides large trucks nationwide and recently added smaller electric vehicles for smaller clients. This is an example of which form of Competitive Advantage?
- A. Differentiation focus
- B. Differentiation
- C. Cost leadership
- D. Cost focus
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
By introducing anew service offering(small electric fleet) distinct from competitors, XYZ uses differentiation strategy- providing unique value beyond cost competition.
(Reference: CIPS L5M10 Study Guide, Porter's Generic Strategies in logistics context, p. 48)
NEW QUESTION # 30
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. Feedback control
- B. Preventative control
- C. Concurrent control
- D. Feedforward control
Answer: B,D
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 # 31
Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?
- A. Any - ABC does not categorise by cost
- B. C
- C. B
- D. A
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABC (Pareto) classification typically groups a small proportion of high-value items as "A" (often 10-20% of items accounting for a large share of value), with "B" and "C" representing progressively lower value importance. (Reference: CIPS L5M10 Study Guide, ABC inventory categorisation, p. 9)
NEW QUESTION # 32
Which of the following standards apply to the use of RFID and other digital data structures regardingpersonal privacy and data collection?
- A. ISO 20400
- B. ISO 9001
- C. ISO 20248
- D. ISO 14001
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ISO 20248definesdata structures and digital signature meta-structuresfor AIDC technologies like barcodes and RFID, addressing authentication, privacy, and traceability.
(Reference: CIPS L5M10 Study Guide, RFID standards and compliance, p. 85)
NEW QUESTION # 33
Which pieces of information would you require to calculate aBOM explosure? Select TWO
- A. Current inventory levels
- B. Materials required to complete an order
- C. Price of the materials
- D. Lead-time of the materials
Answer: A,B
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 # 34
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. FSN analysis
- B. ABC analysis
- C. HML analysis
- D. VED analysis
Answer: A
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 # 35
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