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 27, 2026

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Question 1

Why do you need a life cycle asset management plan?

A : It is the basis of calculating the financial depreciation of the asset

B : It is used to calculate the manpower required to operate the asset

C : It is used to determine what the overall costs of disposing of the asset will be

D : It is a basis for planning resources and budgets to support the asset

Answer: D

Question 2

The managing director requires action to be taken to improve the organization’s profitability and has asked for suggestions to enable this to be achieved. The procurement manager has said that a just-in-time (JIT) system should be introduced. Would such a system improve profitability?

A : Yes, because it would reduce stock holding costs

B : No, because it would increase buffer stock

C : No, because it would increase stock holding costs

D : Yes, because it would reduce stock turn rates

Answer: A

Question 3

Warehouse automation involves the use of technology to perform as many warehousing tasks as possible. There are several benefits that can be gained by using automation in a warehouse. They are...

A : Maintenance costs, downtime due to malfunction, investment costs, and reduced flexibility

B : Decreased speed, increasing cost, improved efficiency, and maximising space

C : Reduced customer service, reduced picking errors, reduced accidents, and minimised space utilisation

D : Increased speed, decreasing cost, improved efficiency, and maximised space

Answer: D

Question 4

A manufacturer aims at increasing the service levels to 99% from 97% through expanding the safety stock. Safety stock can be used to accommodate which of the following?

1. Variability of stock turn

2. Variability of holding costs

3. Variability of demand

4. Variability of lead time

A : 3 and 4 only

B : 1 and 2 only

C : 2 and 4 only

D : 1 and 3 only

Answer: A

Question 5

What are some warehouse layouts that have cross aisles and picking aisles that intersect at angles other than 90 degrees?

A : 'Fan' shaped layout

B : Herringbone-shaped layout

C : U-shape layout

D : L-shape layout

E : 3 and 4 only

F : 2 and 3 only

G : 1 and 3 only

H : 1 and 2 only

Answer: H

Page: 1 / 69

Total 343 Questions | Updated On: Jan 27, 2026

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