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CIPS L5M10 Exam Syllabus Topics:
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CIPS Logistics Management Sample Questions (Q73-Q78):
NEW QUESTION # 73
Gary's Garage fixes cars. He wants to calculate theaverage time in the system per car processed. Which indicator should he use?
- A. Throughput time
- B. Utilisation rate
- C. Waiting rate
- D. Production rate
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Throughput time(also "flow time" or "cycle time") is theaverage time an item spends in the systemfrom entry to exit, capturing processing and waiting. (CIPS L5M10 Study Guide, p. 131)
NEW QUESTION # 74
A Master Production Schedule (MPS) will create a production plan for an item over a period. Which sources will the MPS take information from? Select THREE
- A. Forecast demand
- B. Current stock levels
- C. Price of the materials
- D. Firm customer orders
- E. Company balance sheet
Answer: A,B,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheMPSis driven byforecast demand,firm customer orders, andcurrent inventory/availabilityto decide what, how much, and whento make. Financial statements and prices are not direct inputs to the MPS. (CIPS L5M10 Study Guide, p. 180)
NEW QUESTION # 75
Demand for a product can be classified as either dependent or independent. Which of the following companies produces adependent demanditem?
- A. A dairy farm producing organic milk
- B. An ice cream van operating from April to September
- C. An online clothing retailer
- D. A company that produces tyres for cars
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Dependent demandrefers to items whose demand is directly derived from another product's production-e.
g., tyres depend on car production volumes. In contrast, demand for end products such as ice cream or clothing isindependent, influenced by consumer behaviour rather than other production outputs.
(Reference:CIPS L5M10 Study Guide, Dependent vs. independent demand concepts, p. 114)
NEW QUESTION # 76
Invoice accuracy would affect which element of a company's balance sheet?
- A. Property, plant and equipment
- B. Inventory
- C. Receivables
- D. Current liabilities
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Receivables (debtors)represent money owed from customers. Incorrect invoicing affects these values and distorts reported working capital.
(Reference: CIPS L5M10 Study Guide, Financial impact of logistics, p. 67)
NEW QUESTION # 77
Which of the following scenarios would an MRP system struggle to cope with?
- A. Reducing inventory costs for the business
- B. Changes in requirements from customers
- C. Improving the response time to customer queries
- D. Changes in prices of raw materials
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
MRPassumes relatively stable, planned demand and lead times. It is less effective when there arefrequent late changes(e.g., sudden customer requirement changes), supplier delays, or machine breakdowns, because it is not inherently reactive in real time. (CIPS L5M10 Study Guide, p. 188)
NEW QUESTION # 78
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