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L5M7 Reliable Exam Sample & Test L5M7 Cram Review

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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q44-Q49):

NEW QUESTION # 44
Which of the following tactics helps organisations in the middle of a supply chain protect themselves from the Bullwhip Effect?

A. Employ a younger workforce
B. Trade in a strong currency
C. Conduct due diligence on lower-tier suppliers
D. Have buffer stock

Answer: D

Explanation:
TheBullwhip Effectdescribes amplified demand fluctuations up the supply chain;buffer stockmitigates shortages caused by sudden demand changes.
Short cited term: "buffer stock helps counter demand fluctuation" (L5M7 Study Guide, p. 4).
Reference:CIPS L5M7 Study Guide, p. 4.

NEW QUESTION # 45
SRT Ltd, a national construction firm, has acentralised procurement function. What is an advantage of this?

A. Closer to stakeholders
B. Stakeholder management
C. Coordination of cost-reduction initiatives and bulk ordering
D. Increased flexibility

Answer: C

Explanation:
Centralised procurementenables bettercost coordination, standardisation, and leverage through bulk purchasing, ensuring consistency across sites.
Short cited extract: "Centralised structures coordinate savings and achieve economies of scale." (L5M7 Study Guide, p. 69) Reference:CIPS L5M7 Study Guide, p. 69.

NEW QUESTION # 46
Which of the following is an example ofVariable Pricing?

A. A cleaning firm charges more when demand increases.
B. A retailer holds a January sale.
C. A wholesaler offers a discount when a customer buys more than 100 units.
D. A restaurant offers student discounts.

Answer: C

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.

NEW QUESTION # 47
A marketplace which is described as a'red ocean'has which of the following characteristics?

A. Easy to enter
B. No competition
C. Highly competitive
D. Lots of substitute products available

Answer: C

Explanation:
ARed Oceanmarket ishighly competitivewith many firms fighting for market share, leading to price wars and reduced margins.
Short cited term: "red ocean = intense competition and saturated market." (L5M7 Study Guide, p. 179) Reference:CIPS L5M7 Study Guide, p. 179.

NEW QUESTION # 48
Anagilesupply chain focuses on the elimination of waste. Is this true?

A. No - it focuses on responsiveness to changing customer demand
B. Yes - an agile supply chain reduces waste and defects
C. Yes - it introduces TQM to remove inefficiencies
D. No - it incorporates continuous improvement until errors cease

Answer: A

Explanation:
Agilesupply chains prioritiseflexibility and responsivenessto change, whereasLeanfocuses on waste elimination.
Short cited term: "agile = responsive to demand; lean = waste removal." (L5M7 Study Guide, p. 155) Reference:CIPS L5M7 Study Guide, p. 155.

NEW QUESTION # 49
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