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PassCollection L5M10 Logistics Management Exam Questions are Available in Three
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CIPS Logistics Management Sample Questions (Q16-Q21):NEW QUESTION # 16
Which pieces of information would you require to calculate aBOM explosure? Select TWO
- A. Price of the materials
- B. Current inventory levels
- C. Lead-time of the materials
- D. Materials required to complete an order
Answer: B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABOM explosuredetermines net requirements by expanding theBill of Materialsfor an order and offsetting it againstcurrent inventory/receiptsto find what must be procured or made. Prices and lead times are relevant for scheduling/costing, not for the netting calculation itself. (CIPS L5M10 Study Guide, p. 182)
NEW QUESTION # 17
Dasap Group Ltd has hired a third-party logistics organisation (3PL) to manage some aspects of their business. Which of the following business functions would you expect a 3PL company to manage on behalf of Dasap Group Ltd? Select THREE.
- A. Manage the delivery of items through a transport fleet
- B. Management of the receipt of customer orders
- C. Operation of the distribution centre
- D. Production of sales reports
- E. Management of customer complaints
Answer: A,B,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A3PL (Third-Party Logistics)provider can manage operational logistics functions such asorder receipt and processing,distribution centre operations, andtransport management(fleet, routing, delivery). Customer complaints and sales reports remain the client's responsibility.
(Reference: CIPS L5M10 Study Guide, Outsourced logistics and 3PL services, p. 33)
NEW QUESTION # 18
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Suppliers
- B. Drivers of logistics vehicles
- C. Banks and creditors
- D. Government agencies
Answer: A,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
External stakeholders in reverse logistics includesuppliers, who may receive returned goods or components, andgovernment agencies, who regulate waste handling, recycling, and environmental compliance. Banks and creditors are financial stakeholders, not operational ones, and logistics drivers are internal or connected stakeholders.
(Reference: CIPS L5M10 Study Guide, Reverse logistics stakeholders, p. 192)
NEW QUESTION # 19
Which of the following items can be classed as inventory? Select THREE
- A. Components
- B. Work in progress
- C. Warehouses
- D. Finished goods
- E. Transport vehicles
Answer: A,B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Inventory in logistics and supply chain management refers to goods held for sale or for use in producing goods for sale, at any stage of completion. This includes raw materials/components, work-in-progress (WIP), and finished goods. Physical assets such as warehouses or vehicles are not inventory; they are resources
/capacity assets. (Reference: CIPS L5M10 Study Guide, Section on "The role of logistics and inventory," p. 3)
NEW QUESTION # 20
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. Obsolescence
- B. Pilferage
- C. Warehouse staff uniforms
- D. Insurance
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 # 21
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