L5M10 Exam Questions & Answers
Logistics Management • CIPS
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Sample L5M10 Questions
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What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
Comprehensive and Detailed Explanation From Exact Extract:
Drop shipping delivers goods directly from the manufacturer or wholesaler to the customer, bypassing retailer warehouses. This saves time (faster delivery) and cost (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)
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.
Comprehensive and Detailed Explanation From Exact Extract:
A 3PL (Third-Party Logistics) provider can manage operational logistics functions such as order receipt and processing, distribution centre operations, and transport 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)
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 there Availability to Promise (ATP)?
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)
Which of the following items can be classed as inventory? Select THREE
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)
In a logistics system, if the production rate increases, which of the following is true?
Comprehensive and Detailed Explanation From Exact Extract:
An increase in the production rate generally leads to an increase in the workload 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)
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