Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

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Total 343 Questions | Updated On: Jan 13, 2026

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Question 1

What advantage can the use of ABC classification of stock provide in warehouse design?

A : It allows the organisation to categorise items in alphabetical order for easier storage and retrieval

B : It gives purchasing staff more time to concentrate on those items that have most financial benefit to the organisation

C : It assists in deciding on the most appropriate layout, handling systems, and what type of picking system to introduce

D : It determines where each item is to be located within the warehouse to aid inspection procedures

Answer: C

Question 2

What does MRP software schedule?

A : Human resource management

B : Tax accounting

C : Executive meetings

D : Production processes

Answer: D

Question 3

What advantage can the use of ABC classification of stock provide in warehouse design?

A : It allows the organisation to categorise items in alphabetical order for easier storage and retrieval

B : It gives purchasing staff more time to concentrate on those items that have most financial benefit to the organisation

C : It assists in deciding on the most appropriate layout, handling systems, and what type of picking system to introduce

D : It determines where each item is to be located within the warehouse to aid inspection procedures

Answer: C

Question 4

Which ONE of the following correctly differentiates between obsolescent and redundant stock?

A : Obsolescent stock is in short supply, redundant stock has no current supplier with stock available

B : Obsolescent stock is damaged goods that need returning to suppliers, redundant stock is no longer stocked by the organization

C : Obsolescent stock has been updated by another item but can still be used, redundant stock is no longer used by an organization

D : Obsolescent stock has been supplied by a failed supplier, redundant stock requires quality testing before use

Answer: C

Question 5

The manufacturer wants to significantly increase the stock to meet seasonal demand, but they have limited resources. Which of the following could satisfy their wishes?

A : nsolidate deliveries

B : lk ordering

C : riety reduction

D : nsignment stock

Answer: D

Page: 1 / 69

Total 343 Questions | Updated On: Jan 13, 2026

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