Free CIPS L4M7 Exam Questions

Question 1

What is the main goal of just-in-time?

A : Waste reduction

B : Better demand forecasting

C : Higher safety stock

D : Leveraging economic order quantity

Answer: A

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

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 4

Which of the following are most likely the benefits of using unit loads? Select TWO that apply.

A : fer handling

B : crease transport time of each item

C : it loads must be placed on pallets

D : duce handling cost of one unit

E : nimise space utilisation

Answer: A,D

Question 5

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