Big 11.11 Sale Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code = simple70

Pass the CIPS Level 5 Advanced Diploma in Procurement and Supply L5M7 Questions and answers with Dumpstech

Home
CIPS
CIPS Level 5 Advanced Diploma in Procurement and Supply
L5M7
L5M7 Questions and Answers

Exam L5M7 Premium Access

View all detail and faqs for the L5M7 exam

Go to Exam

Practice at least 50% of the questions to maximize your chances of passing.

Viewing page 1 out of 3 pages

Viewing questions 1-10 out of questions

Questions # 1:

Electro Bob is a wholesaler of electrical equipment. One of its customers, RoostyFace, spends very little and is unlikely ever to increase its spend. Whattype of customeris RoostyFace to Electro Bob (Supplier Preferencing Model)?

Options:

Core

Annoying

Exploitative

Nuisance

Answer

Explanation

In supplier preferencing,nuisancecustomers havelow value/attractivenesswithlimited growth potential. Short cited terms: “nuisance,” “low attractiveness/low value” (L5M7 Study Guide, p.86).

[Reference:CIPS L5M7 Study Guide, p.86., ]

Questions # 2:

Which of the following areadvantages of using local sourcing? Select TWO.

Options:

Higher costs

Less environmental impact

Cheaper

Flexibility for support and maintenance

Higher quality

Answer

B, D

Explanation

Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.

Short cited extract: “Local sourcing provides reduced environmental impact and proximity for support.” (L5M7 Study Guide, p. 70)

[Reference:CIPS L5M7 Study Guide, p. 70., ]

Questions # 3:

Plastic Fantastic Ltd manufactures plastic homeware. Customers can return used products to the retailer, who passes them back to the manufacturer for reprocessing. What type ofsupply chainis this?

Options:

Open Loop Supply Chain

Forward Loop Supply Chain

Manufacturing Supply Chain

Closed Loop Supply Chain

Answer

Explanation

AClosed Loop Supply Chainreintroduces used products into the supply process forreuse, recycling, or remanufacturing, closing the product’s lifecycle.

Short cited term: “closed loop – materials re-enter supply chain” (L5M7 Study Guide, pp. 5–6).

[Reference:CIPS L5M7 Study Guide, pp. 5–6., ]

Questions # 4:

Which of the following could be consideredadded valuewithin a supply chain? Select THREE.

Options:

Profit

Marketing

Quality

Innovation

Time to market

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., ]

Questions # 5:

Farmer Joe sells wheat and barley. He charges more when demand is high and less when demand falls. What pricing strategy does he follow?

Options:

Competitive Pricing

Flexible Pricing

Dynamic Pricing

Variable Pricing

Answer

Explanation

Dynamic Pricingadjusts prices in real time to reflectmarket demand and supply conditions, commonly used in commodities.

Short cited term: “dynamic pricing – prices adjust to demand fluctuation.” (L5M7 Study Guide, p. 189)

[Reference:CIPS L5M7 Study Guide, p. 189., , ]

Questions # 6:

Normal distributionforms what shape on a graph?

Options:

Horizontal line

Vertical line

Bell curve

Circle

Answer

Explanation

ANormal Distributionforms asymmetrical bell-shaped curve, representing probability distribution around a mean.

Short cited term: “normal distribution = bell-shaped curve.” (L5M7 Study Guide, p. 150)

[Reference:CIPS L5M7 Study Guide, p. 150., ]

Questions # 7:

What are some disadvantages to a multi-sourcing strategy in a supply chain? Select TWO.

Options:

Possibility of having surplus stock

Inconsistency in quality

Less dependency on one supplier

Relationships are more transactional

Answer

A, B

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., ]

Questions # 8:

Which of the following is an example ofVariable Pricing?

Options:

A wholesaler offers a discount when a customer buys more than 100 units.

A cleaning firm charges more when demand increases.

A retailer holds a January sale.

A restaurant offers student discounts.

Answer

Explanation

Variable Pricingchanges the unit price based onquantity purchased; larger volumes trigger discounts.

Short cited term: “price varies with quantity ordered.” (L5M7 Study Guide, pp. 188–191)

[Reference:CIPS L5M7 Study Guide, pp. 188–191., ]

Questions # 9:

An organisation can leverage effective Supply Chain Management to deliverCompetitive Advantage. What is meant byCompetitive Advantage?

Options:

Outperforming competitors financially

Becoming the leader in the marketplace through working closely with the supply chain

A benefit that an organisation can use to outperform competitors in the marketplace

Cost savings by narrowing the supply chain

Answer

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., ]

Questions # 10:

What is the name of the phenomenon in which a small change in consumer demand can have an amplified effect throughout the supply chain?

Options:

Pareto Principle

Bullwhip Effect

Supply and Demand

Amplification Concept

Answer

Explanation

The study guide describes how demand variabilityamplifies upstreamin the chain—commonly termed the“bullwhip effect.”This is introduced when explaining basic supply-chain dynamics and flows. Short extract: “demand changes become amplified upstream (bullwhip effect).” (L5M7 Study Guide, p.4)

[Reference:L5M7 Study Guide, p.4., ]

Viewing page 1 out of 3 pages

Viewing questions 1-10 out of questions

Modal title

Registered Required

In order to participate in the comments you need to be logged-in.
You can sign-up or login (it's free).