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: May 11, 2026

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Question 1

A company bought 100 items for $15 each and then another 100 items for $20 each. It sold 60 items and assumed the COSG for each item was $15. It also assumed the value of the remaining 140 items was split into two groups: 40 items worth $15 each and 100 items worth $20 each. This is an example of…?

A : Last in, First out method

B : Just in Time method

C : Net Present Value

D : First in, First out method

Answer: D

Question 2

A manufacturing company warehouse manager has recently decided to adopt across-docking system for some of the components held in storage. Which of thefollowing is associated with goods in cross-docking?

A : Cross-docking eliminates any inventory losses

B : Cross-docking leads to increased finished goods delivery costs

C : Cross-docking significantly increases delivery lead times

D : Cross-docking reduces or eliminates storage requirements

Answer: B

Question 3

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 4

International Standard Book Number (ISBN) is a unique international identification system for each product form or edition of a monographic publication published or produced by a specific publisher. ISBN is an example of...?

A : eck digit

B : dustry standard code

C : n product code system

D : rmonized system

Answer: B

Question 5

Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?

A : reto curve

B : Opitz system

C : asonal demand

D : rrester effect

Answer: D

Page: 1 / 76

Total 380 Questions | Updated On: May 11, 2026

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