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[General] Study Material For CIPS L5M7 Exam Questions

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【General】 Study Material For CIPS L5M7 Exam Questions

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CIPS L5M7 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand Improvement Methodologies that Can Be Used in Supply Chains: This section of the exam measures the skills of Procurement Managers and focuses on the tools and methodologies used to enhance supply chain performance and efficiency. It highlights the principles of total quality management (TQM), including quality assurance and inspection, and their role in ensuring product and process consistency. Candidates must understand how to use statistical methods such as KPIs, data analysis, and Six Sigma to drive continuous improvement. The section also explores lean thinking, agile processes, Just-in-Time (JIT) systems, and the 5S methodology as frameworks for optimizing operations. Furthermore, it covers the application of business process re-engineering (BPR) and benchmarking to evaluate and redesign supply processes for better performance and competitiveness.
Topic 2
  • Understand the Dynamics of Supply Chains: This section of the exam measures the skills of Supply Chain Analysts and covers the foundational understanding of how supply chains operate, interact, and add value to organizations. It examines the differences between supply chains, supply networks, and supply chain management while exploring the concept of supplier tiering and network sourcing. Candidates are expected to understand how effective supply chain management improves quality, reduces costs and lead times, and fosters innovation while mitigating risks. Additionally, this section emphasizes the connection between an organizational infrastructure, culture, and process management in achieving efficient supply chains. It also compares various improvement approaches, including collaborative and competitive models, outsourcing, offshoring, and global procurement.
Topic 3
  • Understand Measures Required to Achieve Competitive Advantage in Supply Chains: This section of the exam measures the skills of Strategic Sourcing Specialists and focuses on achieving and maintaining competitive advantage through strategic supply chain practices. It assesses knowledge of how organizations can leverage cost leadership or differentiation strategies to outperform competitors. Candidates are expected to understand pricing mechanisms such as fixed and variable pricing, open book costing, and risk
  • reward arrangements that drive efficiency and transparency. The section also includes cost reduction techniques like supplier rationalization, value analysis, and negotiation strategies that enhance profitability. Finally, it examines collaborative approaches such as partnership sourcing, building supplier trust, and managing relationship life cycles to ensure long-term strategic advantages within the supply chain.

CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q44-Q49):NEW QUESTION # 44
The effective balancing ofdemand variabilityandinventorythat achieves the optimal time a product passes through the supply chain is known as:
  • A. The Theory of Swift, Even Flow
  • B. Cycle Time
  • C. Just-in-Time
  • D. Lean Manufacturing
Answer: A
Explanation:
TheTheory of Swift Even Flowstates that organisational efficiency improves as the flow of materials, information, and cash becomessmooth and consistentthrough the chain.
Short cited term: "balancing demand and inventory to achieve swift, even flow." (L5M7 Study Guide, p. 37) Reference:CIPS L5M7 Study Guide, p. 37.

NEW QUESTION # 45
Joe is a Supply Chain Manager at a car manufacturer in the UK. He plansrationalisationto streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.
  • A. Customisation
  • B. Tier-skipping
  • C. Reducing the number of suppliers
  • D. Collaborative inventory management
  • E. Supplier innovation
Answer: B,C
Explanation:
Rationalisationincludesreducing supplier numbersand practices such astier-skippingto simplify the network and reduce cost/complexity. Short extract: "rationalisation-reduce supplier base; consider tier- skipping." (L5M7 Study Guide, p.11) Reference5M7 Study Guide, p.11.

NEW QUESTION # 46
Kerry is a new department manager at XYZ Ltd. The company has several manufacturing divisions that serve different market segments. She is considering introducingTotal Quality Management (TQM)only in her division. Is this a good idea?
  • A. No - TQM is not suitable in a manufacturing company
  • B. No - TQM is a holistic approach and should be implemented company-wide
  • C. Yes - TQM will ensure her division outperforms the other divisions
  • D. Yes - staff will respond positively to the change
Answer: B
Explanation:
TQM is aholisticphilosophy requiringorganisation-wideadoption and leadership commitment; partial
/isolated adoption undermines results. Short cited terms: "holistic," "organisation-wide commitment" (L5M7 Study Guide, p.118).
Reference:CIPS L5M7 Study Guide, p.118.

NEW QUESTION # 47
George, a property manager, agrees acost-pluspayment with a plumber. Which of the following will he need to know to calculate total price?
Select THREE.
  • A. Cost of materials
  • B. Supplier's tax rate
  • C. Cost of labour
  • D. Supplier's pension contribution
  • E. Supplier's overhead and profit
Answer: A,C,E
Explanation:
Cost-plus pricingis based onactual material and labour costs plus an agreed marginfor overheads and profit.
Short cited extract: "Cost-plus = actual cost + agreed mark-up for profit/overheads." (L5M7 Study Guide, p.
191)
Reference:CIPS L5M7 Study Guide, p.191.

NEW QUESTION # 48
What is the name of the phenomenon in which a small change in consumer demand can have an amplified effect throughout the supply chain?
  • A. Supply and Demand
  • B. Pareto Principle
  • C. Amplification Concept
  • D. Bullwhip Effect
Answer: D
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) Reference5M7 Study Guide, p.4.

NEW QUESTION # 49
......
L5M7 exam certification is very useful in your daily work in IT industry. When you decide to attend the L5M7 exam test, it is not an easy thing at begin. First, you should have a detail study plan and have a basic knowledge of the L5M7 actual test. Here, CIPS L5M7 test pdf dumps are recommended to you for preparation. L5M7 Pdf Torrent will tell you the basic question types in the actual test and give the explanations where is available. With the help of the L5M7 vce dumps, you will be confident to attend the L5M7 actual test and get your certification with ease.
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