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CIPS L5M10 Exam Syllabus Topics:| Topic | Details | | Topic 1 | - Analyse the Role and Activities of Logistics Management: This section of the exam measures the skills of Logistics Managers and covers the essential concepts, functions, and strategic importance of logistics within modern supply chains. It explains what logistics is, how its key elements work together—such as transportation, warehousing, inventory, packaging, information flow, and security—and how these components support procurement, production, distribution, after-sales processes, and product disposal. The section explores how logistics integrates with broader supply chain management and introduces the idea of total logistics and total cost thinking, showing how multimodal transport and pipeline inventory contribute to efficiency. Candidates must understand how logistics creates competitive advantage by aligning operations with business strategy, managing customer service levels, measuring service quality, and recognizing its financial impact. This heading also evaluates the increasing role of technology in logistics, including barcoding, RFID, e-fulfilment systems, warehouse management systems, automated data capture, and the integration of digital tools across the logistics network.
| | Topic 2 | - Understand Capacity Planning and Control in Logistics Management: This section of the exam measures the skills of Operations Planners and focuses on the techniques and systems used to manage capacity, demand, and resource planning across logistics activities. It explains how organizations balance planning with real-time control, adjust to fluctuating demand, and schedule workloads effectively. Candidates are expected to understand capacity concepts, constraints, demand forecasting, capacity measurement, and different planning approaches such as level planning, chase demand strategies, and demand management methods. The section also examines the use of technology in capacity planning, particularly Materials Requirements Planning (MRP), MRP II, ERP systems, master production scheduling, inventory data, and bills of materials, while recognizing the limitations of these tools. Finally, it covers the role of reverse logistics, emphasizing the handling of customer returns, the development of return policies, and how returned items are reintegrated into the supply chain.
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CIPS Logistics Management Sample Questions (Q59-Q64):NEW QUESTION # 59
Mobile Ltd offers customers £50 to return old or broken phones. What is the most likely reason?
- A. Recycle
- B. Recovery
- C. Reuse
- D. Re-manufacture
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
"Recovery" focuses on extractingvaluable materials(e.g., precious metals) from returned items. For broken phones, recovery is often most economical versus full remanufacture. (CIPS L5M10 Study Guide, p. 191)
NEW QUESTION # 60
In an organisation that has implemented the Theory of Constraint in manufacturing, which of the following is true?
- A. Inventory is not held
- B. Inventory is held by the customer
- C. Inventory is seen as an asset
- D. Inventory is seen as a liability
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
WithinTOC,inventory is treated as a liability(it ties up cash and can hide flow problems), contrasting with traditional accounting that books inventory as an asset. (CIPS L5M10 Study Guide, pp. 141-142)
NEW QUESTION # 61
Which of the following areadvantagesof introducing a Materials Requirements Planning (MRP) system to a business? Select TWO.
- A. Less time spent repairing machines
- B. More agile supply chain
- C. Better customer service
- D. Reduced inventory costs
Answer: C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRP systems synchronise material requirements with production schedules, reducing unnecessary inventory and ensuring timely delivery-thus improving customer service and reducing carrying costs. MRP does not directly enhance machine repair or agility (which are Lean/ERP benefits).
(Reference: CIPS L5M10 Study Guide, Advantages of MRP systems, p. 188)
NEW QUESTION # 62
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?
- A. It allows humans to check the work for accuracy
- B. It is cheap to introduce
- C. It replaces emails
- D. It simplifies the supply chain
Answer: C
Explanation:
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)
NEW QUESTION # 63
When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs wouldnotbe included in the calculation?
- A. Pilferage
- B. Insurance
- C. Warehouse staff uniforms
- D. Obsolescence
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TCO for inventory focuses on all direct and indirect costs incurred in holding stock - such as pilferage (theft), obsolescence (unsellable items), and insurance (risk protection for loss/damage). Staff uniforms, however, are general overheads unrelated to inventory holding cost. (Reference:CIPS L5M10 Study Guide,
"Costs of holding inventory," p. 27)
NEW QUESTION # 64
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