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NEW QUESTION # 53
When would you use aFishbone (Ishikawa) Diagram?
- A. To identify the cause of a problem
- B. To decide which supplier to use
- C. To clarify a relationship
- D. To map issues in the supply chain
Answer: A
Explanation:
AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).
Short cited term: "used to identify root causes of problems." (L5M7 Study Guide, p. 126) Reference:CIPS L5M7 Study Guide, p. 126.
NEW QUESTION # 54
To analyse thevalue of inventory held, which data points must be collected? Select TWO.
- A. Number of items sold
- B. Expiry date
- C. Number of items held in storage
- D. Purchase price
Answer: C,D
Explanation:
Inventory valuation requires data onquantity in stockandunit purchase cost. These determine the total inventory value at any given time.
Short cited extract: "Inventory value = number of items × purchase cost." (L5M7 Study Guide, p.147) Reference:CIPS L5M7 Study Guide, p.147.
NEW QUESTION # 55
RIDDORstatistics provide information on which of the following?
- A. Speed of production
- B. Health and safety
- C. Financial standing
- D. Conformance with specification
Answer: B
Explanation:
RIDDOR(Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) relates tohealth and safetyperformance measurement-tracking workplace incidents and compliance.
Short cited extract: "RIDDOR statistics relate to health and safety reporting." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 56
Which of the following departments within an organisation form part of theValue Chain?
Select THREE.
- A. Logistics
- B. Operations
- C. Human Resources
- D. Procurement
- E. Marketing
Answer: A,B,E
Explanation:
According toMichael Porter's Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.
Short cited term: "primary activities - logistics, operations, marketing and sales" (L5M7 Study Guide, p. 76).
Reference:CIPS L5M7 Study Guide, p. 76.
NEW QUESTION # 57
Just-in-Time (JIT)manufacturing is a form of which organisational strategy?
- A. Cost Leadership
- B. Lean
- C. Business Process Re-engineering
- D. Differentiation
Answer: B
Explanation:
JIT is aLeantechnique to minimise inventory and produce "only what is needed, when needed," thereby removing waste from processes. Short cited phrase: "only when needed" (L5M7 Study Guide, p.111).
Reference:CIPS L5M7 Study Guide, p.111.
NEW QUESTION # 58
In a confectionery factory, quality inspection occurs before packaging. If a product is found defective, which type ofcost of qualityis incurred?
- A. Prevention cost
- B. Appraisal cost
- C. External failure cost
- D. Internal failure cost
Answer: D
Explanation:
Defects discoveredbefore dispatchare classified asinternal failures, including rework, scrap, or re-inspection.
Short cited term: "internal failure = defects found before reaching customer." (L5M7 Study Guide, p. 128) Reference:CIPS L5M7 Study Guide, p. 128.
NEW QUESTION # 59
A strategy in which an organisation concentrates its resources on anarrow market or industry segmentis which ofPorter's Generic Strategies?
- A. Cost Certainty
- B. Cost Leadership
- C. Focus
- D. Differentiation
Answer: C
Explanation:
Porter'sFocus Strategyinvolvestargeting a niche marketto meet unique needs better than competitors.
Short cited term: "focus - targeting a narrow market segment" (L5M7 Study Guide, p. 52).
Reference:CIPS L5M7 Study Guide, p. 52.
NEW QUESTION # 60
The effective balancing ofdemand variabilityandinventorythat achieves the optimal time a product passes through the supply chain is known as:
- A. Lean Manufacturing
- B. Cycle Time
- C. The Theory of Swift, Even Flow
- D. Just-in-Time
Answer: C
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 # 61
Sandy has been asked to collectprimary dataon manufacturing defects and their effect on profits. She decides to send aquestionnaireto staff. Is this correct?
- A. Yes - a questionnaire is a form of primary data
- B. No - she should research online about defaults
- C. No - a questionnaire will not provide useful information
- D. Yes - staff will know all the answers
Answer: A
Explanation:
Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy's approach aligns with primary data collection methods.
Short cited extract: "Primary data: original research such as questionnaires and interviews." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 62
Trust is a dynamic concept required in partnership relationships. Which of the following are part of thefive trust componentsimportant in supply chains?
- A. Competence
- B. Charm
- C. Integrity
- D. Loyalty
- E. Power
Answer: A,C,D
Explanation:
Trust in supply chains is built on components includingintegrity,competence,loyalty,openness, andfairness.
Short extract: "key trust components: integrity, competence, loyalty, openness, fairness." (L5M7 Study Guide, Domain 3.4 section) Reference:L5M7 Study Guide, Domain 3.4 (Relationship/Trust components).
NEW QUESTION # 63
In supply-chain management, isculturea relevant consideration?
- A. Yes - understanding culture helps achieve collaboration between organisations
- B. No - culture is impossible to define and should not be a consideration
- C. No - it does not matter what the culture of the supply chain is
- D. Yes - culture determines whether you wish to work with a supplier or not
Answer: A
Explanation:
Understandingorganisational and national culturesupports collaboration, communication, and innovation across the chain. Cultural awareness enables smoother partnerships and shared values.
Short cited extract: "Cultural understanding assists collaboration and trust within supply-chain relationships.
" (L5M7 Study Guide, pp. 58-59)
Reference:CIPS L5M7 Study Guide, pp. 58-59.
NEW QUESTION # 64
In what way has the increase in the use oftechnologyaffected buyer-supplier relationships?
- A. It has reduced the bargaining power of buyers because there are fewer suppliers.
- B. It has increased the bargaining power of suppliers as they can provide faster quotations.
- C. It has increased the bargaining power of buyers because technology has increased operational costs.
- D. It has reduced the bargaining power of suppliers as buyers now have access to a wider pool of suppliers and product information.
Answer: D
Explanation:
Technology enhancesbuyer access to data, broadening supplier choice and transparency, whichreduces supplier power.
Short cited term: "technology has reduced suppliers' bargaining power" (L5M7 Study Guide, p. 66).
Reference:CIPS L5M7 Study Guide, p. 66.
NEW QUESTION # 65
Open-Book Costingrelies on which of the following? Select TWO.
- A. Good communication
- B. Splitting profit 50:50
- C. Transparency of costs and justifications
- D. Finding the lowest cost
Answer: A,C
Explanation:
Open-Book Costingfosterstrust and collaborationby ensuring both parties share detailed cost data and maintain open, transparent communication.
Short cited extract: "Open-book costing requires transparency and communication between partners." (L5M7 Study Guide, p.193) Reference:CIPS L5M7 Study Guide, p.193.
NEW QUESTION # 66
The80/20 ruleis also commonly referred to as what?
- A. Kraljic Matrix
- B. Supplier Positioning
- C. SWOT Analysis
- D. Pareto Principle
Answer: D
Explanation:
ThePareto Principlestates that approximately80% of outcomesarise from20% of causes, applied in supply chain analysis to identify key value contributors.
Short cited extract: "Pareto (80/20) - a small number of causes create the majority of effects." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.
NEW QUESTION # 67
Which of the following describes anAdhocracyorganisational structure? Select TWO.
- A. Highly formalised structure
- B. Low levels of centralisation
- C. Has a vertical structure where managers maintain control
- D. Can respond quickly to change
- E. Highly documented routine processes
Answer: B,D
Explanation:
Anadhocracyisflexible,decentralised, and able torespond rapidlyto change, though it may lack formal control systems.
Short cited term: "low formalisation, high adaptability" (L5M7 Study Guide, p. 64).
Reference:CIPS L5M7 Study Guide, p. 64.
NEW QUESTION # 68
Which of the following isNOTan objective ofTotal Quality Management (TQM)?
- A. Meeting customer expectations
- B. Employee empowerment
- C. Zero-defects
- D. Financial planning
Answer: D
Explanation:
TQM objectives focus oncustomer satisfaction, zero defects, and employee engagement, not financial planning.
Short cited extract: "TQM aims: customer focus, zero defects, continuous improvement - not financial planning." (L5M7 Study Guide, p. 112) Reference:CIPS L5M7 Study Guide, p. 112.
NEW QUESTION # 69
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?
- A. Open Loop Supply Chain
- B. Manufacturing Supply Chain
- C. Closed Loop Supply Chain
- D. Forward Loop Supply Chain
Answer: C
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.
NEW QUESTION # 70
Data needs to be collected, measured, and analysed to ensure quality in processes. Which of the following should the data be?
- A. Achievable, Time-bound, and Qualitative
- B. Quick, Relevant, and Measurable
- C. Time-bound, Detailed, and Impartial
- D. Specific, Measurable, Achievable
Answer: D
Explanation:
Effective quality measurement requiresSMART data-Specific,Measurable,Achievable,Relevant, and Time-bound-ensuring that data supports actionable improvement.
Short cited extract: "Data should be SMART to allow accurate performance analysis." (L5M7 Study Guide, p.
140)
Reference:CIPS L5M7 Study Guide, p.140.
NEW QUESTION # 71
According to theSupply of Goods and Services Act (1982), which of the following isnota legal description of quality?
- A. Fit for purpose
- B. Safety
- C. Durability
- D. Free from all defects
Answer: D
Explanation:
The Act defines quality as products beingfit for purpose,as described,safe, anddurable. It doesnot guarantee freedom from every defect.
Short cited term: "fit for purpose, safe, durable - but not free from all defects." (L5M7 Study Guide, relevant section on statutory quality standards) Reference:CIPS L5M7 Study Guide, Quality and Legislation section (Domain 2.1).
NEW QUESTION # 72
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)?
- A. Exploitative
- B. Nuisance
- C. Annoying
- D. Core
Answer: B
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.
NEW QUESTION # 73
Which industry is most likely to usesupplier tiering?
- A. Automotive
- B. Services
- C. Agriculture
- D. Finance
Answer: A
Explanation:
Theautomotive industryusessupplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.
Short cited extract: "Automotive sector commonly applies supplier-tier structures." (L5M7 Study Guide, p.
115)
Reference:CIPS L5M7 Study Guide, p. 115.
NEW QUESTION # 74
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