[May 24, 2026] L5M7 PDF Questions and Testing Engine With 90 Questions
Updated Exam Engine for L5M7 Exam Free Demo & 365 Day Updates
NEW QUESTION # 39
ACost Leaderis able to lower the price of an item or material within the marketplace. Is this true?
- A. Yes - they set a price standard as well as lowering prices
- B. No - a cost leader holds the largest market share and never reduces prices
- C. No - a cost leader has no influence on market price
- D. Yes - they are able to lower prices but not increase them
Answer: A
Explanation:
ACost Leaderdetermines the market price standard and can influence both price reductions and increases.
Their efficiency allows them to lead pricing trends.
Short cited term: "cost leader sets price standard in market." (L5M7 Study Guide, p. 179) Reference:CIPS L5M7 Study Guide, p. 179.
NEW QUESTION # 40
Which of the following is adisadvantageofJust-In-Time (JIT) Manufacturing?
- A. You cannot obtain economies of scale
- B. There is less waste produced
- C. It is expensive to implement
- D. Inventories are wasteful and expensive
Answer: A
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 # 41
AResource-Based Review(RBR) focuses on which aspect of competitive advantage?
- A. Using the external environment to create value
- B. Narrowing the supply chain to create efficiencies
- C. Achieving cost leadership through lower prices
- D. Internal environment as a driver of competitive advantage
Answer: D
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 # 42
An organisation can leverage effective Supply Chain Management to deliverCompetitive Advantage. What is meant byCompetitive Advantage?
- A. Becoming the leader in the marketplace through working closely with the supply chain
- B. Outperforming competitors financially
- C. Cost savings by narrowing the supply chain
- D. A benefit that an organisation can use to outperform competitors in the marketplace
Answer: D
Explanation:
Competitive advantageis adistinct capabilitythat allows an organisation tooutperform its rivals, whether through cost efficiency, quality, innovation, or service.
Short cited term: "advantage that enables outperforming competitors" (L5M7 Study Guide, p. 2).
Reference:CIPS L5M7 Study Guide, p. 2.
NEW QUESTION # 43
Which of the following is an example ofexceedingcustomers' expectations? Select TWO.
- A. Providing the item desired in a different colour
- B. Providing a free gift when a purchase is made
- C. The price is lower than the customer expected to pay
- D. A customer orders an item online and it is delivered on the expected day
Answer: B,C
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 # 44
When would you use aFishbone (Ishikawa) Diagram?
- A. To decide which supplier to use
- B. To clarify a relationship
- C. To map issues in the supply chain
- D. To identify the cause of a problem
Answer: D
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 # 45
A car manufacturer that accommodatesunique and desirable featuresinto design at a premium cost is using which of the following strategies?
- A. Differentiation
- B. Customer Experience
- C. Cost Leadership
- D. Cost Focus
Answer: A
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 # 46
Which of the following isnota characteristic ofQuality Managementfound inISO 9001?
- A. Involvement of people
- B. Protection of the environment
- C. Customer focus
- D. Continuous Improvement
Answer: B
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 # 47
Anagilesupply chain focuses on the elimination of waste. Is this true?
- A. Yes - it introduces TQM to remove inefficiencies
- B. Yes - an agile supply chain reduces waste and defects
- C. No - it incorporates continuous improvement until errors cease
- D. No - it focuses on responsiveness to changing customer demand
Answer: D
Explanation:
Agilesupply chains prioritiseflexibility and responsivenessto change, whereasLeanfocuses on waste elimination.
Short cited term: "agile = responsive to demand; lean = waste removal." (L5M7 Study Guide, p. 155) Reference:CIPS L5M7 Study Guide, p. 155.
NEW QUESTION # 48
Ahierarchically orientated organisationwould have which of the following characteristics?
- A. Integration focus
- B. Stability and control
- C. Equality among employees
- D. Flexibility and discretion
Answer: B
Explanation:
Ahierarchical culturevaluesstability, control, and formal structure, with defined authority levels.
Short cited extract: "Hierarchy culture - stability, rules, and control mechanisms." (L5M7 Study Guide, p. 60) Reference:CIPS L5M7 Study Guide, p. 60.
NEW QUESTION # 49
Which of the following could be consideredadded valuewithin a supply chain? Select THREE.
- A. Marketing
- B. Profit
- C. Time to market
- D. Quality
- E. Innovation
Answer: C,D,E
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 # 50
A marketplace which is described as a'red ocean'has which of the following characteristics?
- A. Highly competitive
- B. Lots of substitute products available
- C. Easy to enter
- D. No competition
Answer: A
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 # 51
RIDDORstatistics provide information on which of the following?
- A. Speed of production
- B. Conformance with specification
- C. Financial standing
- 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 # 52
SRT Ltd, a national construction firm, has acentralised procurement function. What is an advantage of this?
- A. Coordination of cost-reduction initiatives and bulk ordering
- B. Increased flexibility
- C. Closer to stakeholders
- D. Stakeholder management
Answer: A
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 # 53
Which of the following relationship styles is theleast collaborative?
- A. Transactional
- B. Strategic alliance
- C. Arm's-length
- D. Outsourced
Answer: C
Explanation:
On the relationship spectrum,arm's-lengthis alow-collaborationstyle (onlyadversarialis lower), characterised by limited information sharing and short-term focus. Short cited term: "relationship spectrum ...
arm's-length (low collaboration)" (L5M7 Study Guide, p.80).
Reference:CIPS L5M7 Study Guide, p.80.
NEW QUESTION # 54
Which of the following is an example of aclosed-loopsupply chain?
- A. The sale of second-hand cars at a retail outlet
- B. The extraction of diamonds from a mine sold to a jewellery manufacturer
- C. A retailer which accepts old phones to be given back to the manufacturer
- D. A farm supplying milk to a dairy manufacturer
Answer: C
Explanation:
Aclosed-loop supply chainreturns used products to the chain forreuse/recycling/remanufacture. Short extract: "closed loop - products/materials re-enter the supply chain." (L5M7 Study Guide, pp.5-7) Reference:L5M7 Study Guide, pp.5-7.
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
Which approach to quality involvesmanufacturing only what is required, when it is required?
- A. Total Quality Control
- B. Total Quality Management
- C. Just-in-Time
- D. Zero Defects
Answer: C
Explanation:
Just-in-Time (JIT)manufacturing produces goodsonly when required, eliminating excess inventory and waste, ensuring smooth, efficient flow.
Short cited term: "make only what is needed, when needed" (L5M7 Study Guide, p. 30).
Reference:CIPS L5M7 Study Guide, p. 30.
NEW QUESTION # 57
What are some disadvantages to a multi-sourcing strategy in a supply chain? Select TWO.
- A. Inconsistency in quality
- B. Relationships are more transactional
- C. Possibility of having surplus stock
- D. Less dependency on one supplier
Answer: A,C
Explanation:
Multi-sourcing canincrease inventory/duplicationand createquality inconsistencybetween sources. Reduced dependency (C) is anadvantage, and (D) is a neutral characteristic rather than a disadvantage. Short extract: " multiple sources may lead to duplication/stock and variable quality." (L5M7 Study Guide, p.6) Reference:L5M7 Study Guide, p.6.
NEW QUESTION # 58
What isBusiness Process Re-engineering (BPR)?
- A. Repositioning a company in its market segment
- B. Comparison of business strengths and weaknesses
- C. A strategy that analyses workflow to find efficiencies
- D. Refinancing of a company
Answer: C
Explanation:
BPRexamines and redesignsworkflows and processesto remove waste and maximise efficiency and customer value.
Short cited extract: "BPR - radical review of workflows to achieve major efficiency improvements." (L5M7 Study Guide, p. 111) Reference:CIPS L5M7 Study Guide, p. 111.
NEW QUESTION # 59
Guppy Fish Ltd manufactures machinery. A rival is releasing automated technology that could replace manual operation. What type of threat does this pose?
- A. Threat of artificial intelligence
- B. Bargaining power of suppliers
- C. Bargaining power of buyers
- D. Threat of new entrants
Answer: D
Explanation:
According toPorter's Five Forces, new automated competitors represent athreat of new entrants, introducing innovation and market pressure.
Short cited extract: "New entrants increase competition and threaten existing players." (L5M7 Study Guide, p.
56)
Reference:CIPS L5M7 Study Guide, p.56.
NEW QUESTION # 60
Why would a company use aProcess Mapping Technique? Select TWO.
- A. To assist with budgeting
- B. To identify where waste and inefficiency exist
- C. To establish what is currently happening and why
- D. To increase market share
Answer: B,C
Explanation:
Process mappingvisually defineshow processes operate, revealinginefficiencies, duplication, and waste, and clarifies thecurrent process flow and responsibilities.
Short cited term: "identifies inefficiencies and highlights process waste" (L5M7 Study Guide, p. 73).
Reference:CIPS L5M7 Study Guide, p. 73.
NEW QUESTION # 61
RIDDORstatistics provide information on which of the following?
- A. Speed of production
- B. Conformance with specification
- C. Financial standing
- 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 # 62
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 - a questionnaire will not provide useful information
- B. Yes - staff will know all the answers
- 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 # 63
......
Exam Passing Guarantee L5M7 Exam with Accurate Quastions: https://pass4sure.practicedump.com/L5M7-exam-questions.html