Pass the CIPS Level 5 Advanced Diploma in Procurement and Supply L5M10 Questions and answers with Dumpstech

Comprehensive and Detailed Explanation From Exact Extract:

EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces—not adds—manual human checking. (Reference: CIPS L5M10 Study Guide, EDI—purpose and benefits, p. 81)

Comprehensive and Detailed Explanation From Exact Extract:

Exponential smoothing gives progressively less weight to older data but uses the entire historical dataset to forecast future demand. Moving averages, by contrast, use a fixed number of recent periods. (Reference: CIPS L5M10 Study Guide, Demand forecasting methods, p. 157)

Comprehensive and Detailed Explanation From Exact Extract:

RFID tagging supports item-level identification and can trigger alarms at controlled exit points, helping deter and detect theft. While a WMS improves control and accuracy, RFID directly addresses shrinkage through automated detection. (Reference: CIPS L5M10 Study Guide, RFID uses—waste and pilferage reduction, p. 23)

Comprehensive and Detailed Explanation From Exact Extract:

ERP extends the MRP concept across the whole enterprise. It centralises data (reducing duplication and error) and supports multiple languages and currencies for global operations. It is, however, more complex and costly to implement than MRP.

(Reference: CIPS L5M10 Study Guide, ERP evolution from MRP, pp. 175–176)

Comprehensive and Detailed Explanation From Exact Extract:

Supply chain management spans end-to-end value creation activities, includinginnovation/product development,procurement,logistics, operations and customer service. Support functions like HR and Finance are important enablers, but they are not core SC processes in this context. (CIPS L5M10 Study Guide, p. 3)

Comprehensive and Detailed Explanation From Exact Extract:

Pipeline inventory(goods in transit between suppliers and buyers) forms part of total inventory value once ownership transfers (e.g., after payment). Retailer stock is excluded unless under vendor-managed agreements.

(Reference: CIPS L5M10 Study Guide, Inventory types and pipeline inventory, p. 40)

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)

Comprehensive and Detailed Explanation From Exact Extract:

Abuy-back schemeinvolves a companypurchasing used materialsfrom consumers for reuse, recovery, or recycling — e.g., paying for returned copper pipes.

Other incentive types:

Deposit schemes(option B) – refunds when packaging is returned.

Free collection(option C) – logistical support incentive.

Trade-in(option D) – part-exchange schemes.(Reference:CIPS L5M10 Study Guide, Incentives for household recycling, pp. 194–195)

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)

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)