Pass L5M10 Exam in First Attempt Guaranteed 100% Cover Real Exam Questions [Apr-2026]
Valid L5M10 test answers & CIPS L5M10 exam pdf
CIPS L5M10 Exam Syllabus Topics:
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NEW QUESTION # 13
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. Production of sales reports
- B. Management of the receipt of customer orders
- C. Manage the delivery of items through a transport fleet
- D. Operation of the distribution centre
- E. Management of customer complaints
Answer: B,C,D
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 # 14
Mobile Ltd offers customers £50 to return old or broken phones. What is the most likely reason?
- A. Recovery
- B. Re-manufacture
- C. Recycle
- D. Reuse
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
"Recovery" focuses on extractingvaluable materials(e.g., precious metals) from returned items. For broken phones, recovery is often most economical versus full remanufacture. (CIPS L5M10 Study Guide, p. 191)
NEW QUESTION # 15
What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
- A. To avoid import duty
- B. To reduce costs
- C. To save time
- D. To simplify billing
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drop shippingdelivers goods directly from the manufacturer or wholesaler to the customer, bypassing retailer warehouses. This savestime(faster delivery) andcost(less handling and storage). Billing remains unchanged; import duty avoidance is not a design aim.
(Reference:CIPS L5M10 Study Guide, Customer fulfilment strategies, p. 7)
NEW QUESTION # 16
What is the name of the emerging tool that can help companies improve supply chain visibility across macro- environmental factors such as political, environmental, and social changes?
- A. SCEM
- B. LEAN
- C. Six Sigma
- D. STEEPLE
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Supply Chain Event Management (SCEM) systems monitor and compareplanned versus actualsupply chain events. They issue alerts when disruptions or macro-environmental changes (e.g., political instability or weather) cause deviations from plan, enabling rapid corrective actions. (Reference:CIPS L5M10 Study Guide, SCEM section, p. 40)
NEW QUESTION # 17
Hazardous waste such as asbestos or radioactive material presents additional reverse logistics complications.
In these cases, what type of return is used?
- A. Product defect return
- B. Product recall
- C. End-of-life return
- D. Recycle return
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
End-of-life returns occur when a product cannot be repaired, reused, or recycled safely and must be disposed of in line with legal and environmental regulations. Hazardous waste (e.g., asbestos) falls under this category due to safety requirements. (Reference:CIPS L5M10 Study Guide, Reverse logistics-types of returns, p. 193)
NEW QUESTION # 18
A detailed list of a ship's cargo, issued as a receipt by the master of the ship to the person consigning the goods, is known as which document?
- A. Bill of Lading
- B. Customs Declaration
- C. EUR1 Form
- D. Certificate of Origin
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
A Bill of Lading (B/L) serves as both a receipt for shipped goods and a document of title. It confirms carriage terms between shipper and carrier and is critical in international freight documentation. (Reference:CIPS L5M10 Study Guide, "Key transport documents," p. 44)
NEW QUESTION # 19
Paul is a Warehouse Manager of plumbing supplies. He is planning to change the layout by placing fast- moving items near the front, slower further back, and rarely used items in separate storage. What type of system is Paul using?
- A. FSN analysis
- B. ABC analysis
- C. HML analysis
- D. VED analysis
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
FSNgroups items by movement speed:Fast-moving,Slow-moving,Non-moving. It's used to position stock for efficient access and handling based on usage frequency. (CIPS L5M10 Study Guide, p. 147)
NEW QUESTION # 20
Which governing body is responsible for the creation and management of Incoterms rules?
- A. International Labour Organization
- B. United Nations
- C. World Trade Organization
- D. International Chamber of Commerce
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Incoterms are published and maintained by the International Chamber of Commerce (ICC) to define buyer
/seller responsibilities for delivery, risk, and costs under international sales contracts. (Reference: CIPS L5M10 Study Guide, Incoterms governance, p. 7)
NEW QUESTION # 21
Patrick wants a tool that can visually display information on planning, scheduling and track production activities within a distribution centre. Which would best suit his requirement?
- A. PERT Analysis
- B. Linear Programming
- C. Critical Path
- D. Gantt Chart
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AGantt chartvisually maps activities over time forplanning and scheduling, showing task durations, overlaps and progress tracking. Critical Path/PERT are network methods for project timing; linear programming is an optimisation technique. (CIPS L5M10 Study Guide, pp. 125-128)
NEW QUESTION # 22
In which of the following circumstances does the usual 14-day cooling-off periodnotapply? Select THREE.
- A. Buying train tickets
- B. Made-to-order items (e.g., personalised T-shirts)
- C. Items covered by warranty (e.g., electrical goods)
- D. Hiring a consultant
- E. Online digital content where the buyer has begun downloading
Answer: A,B,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Consumer protection regulations exclude cancellation rights for:
* Transport tickets (e.g., train, flights)
* Bespoke or personalised goods
* Digital downloads where the buyer has begun accessing the content
(Reference:CIPS L5M10 Study Guide, "Cooling-off periods and exceptions," p. 200)
NEW QUESTION # 23
In a logistics system, if the production rate increases, which of the following is true?
- A. The throughput time increases
- B. The workload arrival rate increases
- C. The workload arrival rate decreases
- D. The waiting rate increases
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
An increase in the production rate generally leads to an increase in theworkload arrival rate- the rate at which items or tasks enter the system for processing. This relationship reflects flow interdependence between system inputs and production capacity. The relationship among production rate, throughput rate, and waiting rate is visually represented in logistics process flow diagrams.
(Reference:CIPS L5M10 Study Guide, Flow management and capacity relationships, p. 132)
NEW QUESTION # 24
Apart from customers, which of the following areexternal stakeholdersinvolved in reverse logistics operations? Select TWO.
- A. Suppliers
- B. Government agencies
- C. Banks and creditors
- D. Drivers of logistics vehicles
Answer: A,B
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 # 25
Martin Christopher argues that Competitive Advantage is formed through the management of which THREE aspects?
- A. Company
- B. Creditors
- C. Customer
- D. Competitors
- E. Cost
Answer: A,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Martin Christopher'sThree Cs modelemphasises achieving competitive advantage through balancing and managing theCompany,Customer, andCompetitors. These must be aligned to deliver superior value and sustained differentiation.
(Reference:CIPS L5M10 Study Guide, Christopher's Three Cs model, p. 59)
NEW QUESTION # 26
Select from the following list the example ofreverse logistics.
- A. A supplier provides an additional delivery of items to the buyer
- B. A retail outlet returns faulty goods to the manufacturer
- C. A distribution centre sends goods to several retail units using the same delivery truck
- D. The manufacturer sends completed goods to the customer
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Reverse logistics involves goods movingupstreamin the supply chain-typically from customers back to the manufacturer or supplier-for return, repair, reuse, or recycling. Returning faulty goods to a manufacturer is a textbook example.
(Reference: CIPS L5M10 Study Guide, Reverse logistics definition and examples, p. 189)
NEW QUESTION # 27
The "Net Promoter Score" (NPS) provides a company with an indication of customer satisfaction by answering which question?
- A. How likely are you to recommend the service to a friend?
- B. On a scale of 1-10 did you find the service value for money?
- C. Would you use this service again?
- D. How happy are you with the service delivered?
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
NPS is a single-question metric asking customers how likely they are to recommend the product/service to others (typically on a 0-10 scale). It is widely used as a proxy for loyalty and satisfaction. (Reference: CIPS L5M10 Study Guide, customer satisfaction measures-NPS, p. 62)
NEW QUESTION # 28
Which of the following is a key driver of reverse logistics?
- A. An increase in the manufacturing of faulty goods
- B. Free returns offered to customers who buy online
- C. Increased prices of raw materials to the manufacturer
- D. Increased demand within the retail sector
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The growth ofe-commerce free-returns policieshas significantly increasedreturn volumes, making it a major driver of reverse logistics activity and cost. (CIPS L5M10 Study Guide, p. 190)
NEW QUESTION # 29
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?
- A. It allows humans to check the work for accuracy
- B. It simplifies the supply chain
- C. It replaces emails
- D. It is cheap to introduce
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)
NEW QUESTION # 30
A Transport Management System (TMS) comprises several functions. Which of the following is NOT one of these?
- A. Planning and decision-making
- B. Measurement and reporting
- C. Transport execution
- D. Fleet maintenance
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Core TMS functions typically include: planning & decision-making (e.g., carrier/route selection), transport execution (e.g., tendering, dispatch), transport follow-up/visibility, and measurement & reporting (KPIs).
Fleet maintenance is generally a separate fleet/asset management function, not a standard TMS core function.
(Reference: CIPS L5M10 Study Guide, TMS functions, p. 91)
NEW QUESTION # 31
There are five aspects to Total Supply Chain Management Costs. Which of the following isnotone of them?
- A. Material acquisition costs
- B. Inventory carrying costs
- C. Supply chain related finance and planning costs
- D. Order management costs
- E. Overhead costs
Answer: E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Total Supply Chain Cost (TSCC)covers five areas:
* Order management,
* Material acquisition,
* Inventory carrying,
* Supply chain IT systems,
* Supply chain finance and planning costs.Overheads(e.g., admin, utilities) are general business expenses, not TSCC elements.(Reference: CIPS L5M10 Study Guide, Supply chain cost components, p.
48)
NEW QUESTION # 32
Which approach aims to increase profits by maximising the performance ofconstraints?
- A. Total Quality Management
- B. Six Sigma
- C. Lean
- D. Theory of Constraint
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheTheory of Constraint (TOC)is built on the ideas that every process has abottleneckand that improving throughput requiresexploiting/elevating that constraint(while subordinating other steps). (CIPS L5M10 Study Guide, p. 138)
NEW QUESTION # 33
Green Frog Ltd is a consultancy with ~50 customers. The CEO plans to use a Cost-to-Serve (CTS) tool to understand customer profitability. Is this the right approach?
- A. No - all customers are equally profitable if they pay the same rates
- B. No - use Total Cost of Ownership (TCO) instead
- C. Yes - Cost to Serve will allow identification of unprofitable customers
- D. Yes - it is expensive but provides high visibility
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cost-to-Serve analyses end-to-end activities and resources consumed to serve specific customers or segments, exposing variation in profitability (e.g., delivery distance, visit frequency, handling complexity). It is appropriate for finding unprofitable customers. CTS is not inherently "expensive," and TCO focuses on lifecycle cost of acquiring/owning goods-not customer profitability. (Reference: CIPS L5M10 Study Guide, Cost-to-Serve concept and uses, p. 61)
NEW QUESTION # 34
Blue Toes Inc. conducts a Cost-to-Serve analysis and identifies customer "Pink Nose" as low-cost-to-serve and high-value. Which strategy should they apply?
- A. Cost engineer
- B. Danger zone
- C. Build
- D. Protect
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TheCustomer Profitability Matrix(Christopher, 1998) identifies "Protect" forhigh-value, low-cost-to-serve accounts - focusing on retention and maintaining satisfaction.
(Reference: CIPS L5M10 Study Guide, Customer Profitability Matrix, p. 62)
NEW QUESTION # 35
Jack bought a washing machine from a UK retailer. After 1 year, a fault develops that stops it from working.
Under UK legislation can Jack return the item?
- A. Yes - if he has attempted to fix the item himself and cannot fix it
- B. No - a customer has a maximum of 14 or 30 days to return the item
- C. No - as he has used the item
- D. Yes - if this is within the warranty period
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Under theConsumer Rights Act 2015, if a product develops a faultwithin its warranty period, the customer has the right to repair, replacement, or refund. Attempting self-repair voids warranty protection. The 14-30- day "cooling-off period" applies to unused, distance-purchased goods only.
(Reference:CIPS L5M10 Study Guide, Consumer legislation and returns, p. 200)
NEW QUESTION # 36
Red Lettuce Ltd is a manufacturer of screwdrivers. It uses afinite loadingapproach in its work centres. What does this mean?
- A. Each work centre produces items to a specific budget
- B. Demand for work may vary from work centre to work centre
- C. Each work centre is given a target number of items to produce
- D. The amount of work given to each work centre is limited to a specific amount
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Finite loadingassigns work to production centres only up to their available capacity and processing time. It ensures that the workload remains realistic and prevents overloading any resource. By contrast,infinite loadingignores capacity limits and assigns all work regardless of availability, leading to backlogs or bottlenecks.
(Reference:CIPS L5M10 Study Guide, Production planning - finite vs. infinite loading, p. 120)
NEW QUESTION # 37
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