Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

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Total 380 Questions | Updated On: Mar 11, 2026

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Question 1

Which of the following are examples of subjective methods of forecasting? Select TWO that apply. Trend line analysis Moving averages Market research Expert opinion Seasonal variations

A : 1 and 2 only

B : 3 and 4 only

C : 2 and 5 only

D : 1 and 5 only

Answer: B

Question 2

A warehouse manager is evaluating the use of Automated Guided Vehicles (AGVs) within a repetitive taskenvironment. After reviewing their use and price, the manager decided to invest in several AGVs. Were theycorrect in doing this?

A : Yes, as it will reduce the costs of employing labour

B : No, as it reduces the flexibility of the warehouse operations

C : Yes, organisations must use high-tech solutions where possible

D : No, as they are only suitable for use in non-repetitive task environments

Answer: A

Question 3

A buyer has been asked to support the chief procurement officer with a whole-life cost analysis. What is thekey benefit of a cross-functional team for the development of a whole-life costing model?

A : It will ensure quicker access to all the data needed to develop the whole-life cost model

B : It will ensure that the decision making process will be slowed down

C : It will ensure that information is not shared

D : It will ensure that no department is left out of the planning process

Answer: D

Question 4

What does MRP software schedule?

A : Human resource management

B : Tax accounting

C : Executive meetings

D : Production processes

Answer: D

Question 5

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

Page: 1 / 76

Total 380 Questions | Updated On: Mar 11, 2026

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