Free CIPS L2M5 Exam Questions

Become CIPS Certified with updated L2M5 exam questions and correct answers

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Total 126 Questions | Updated On: Mar 28, 2025

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Question 1

Which of the following is a definition of the economic order quantity – EOQ?

A : rmula that buyers use to calculate the most economically viable quantity in which to order additional stock

B : Formula that buyers use to calculate the most economically viable price in which to order additional stock

C : rmula that buyers use to calculate the most economically viable place in which to order additional stock

D : rmula that buyers use to calculate the most economically viable quantity in which to order additional stock

Answer: A

Question 2

Who devised the INCOTERMS?

A : ternational Chamber of Civil Engineers

B : ternational Chamber of Commerce

C : ternational Cubical of Civil Engineers

D : ternational Cubical of Commerce

Answer: B

Question 3

An organisation can be in profit but have poor cash flow

A : UE

B : LSE

Answer: A

Question 4

Which mode of transport is more environmentally friendly than other methods, and can be used for large or heavy items?

A : r

B : peline

C : il

D : ad

E :

Answer: C

Question 5

Which of the following is true for Just in time – JIT. Select all that apply?

A : ms to bring inventory levels down to minimal levels or, in its purest form, have no inventory.

B : y disruption in a Just-in-time system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

C : Buyers should adopt JIT with ALL suppliers

D : n be used as an inventory control system to mitigate over-supply.

E : Just in time, or JIT, is an operations management or inventory control system that aims to reduce wasted resources by minimising inventory. It coordinates demand and supply by purchasing, transporting and processing materials ‘just in time’ for when they are needed in the manufacturing process.JIT should NOT be adopted with all suppliers as this is not practical. It should be adopted when appropriate because any disruption in a JIT system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

Answer: A,B,D

Page: 1 / 26

Total 126 Questions | Updated On: Mar 28, 2025

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