Free CIPS L4M7 Exam Questions

Question 1

One of the classifications of inventory is referred to as 'indirect supplies.' Which of the following items are examples of indirect supplies in a water bottling plant? Lubricants for maintenance of production machines Computer cartridges for the procurement office Reams of printed labels to stick on water bottles Blue-colored plastic caps to seal the water bottles

A : 1 and 2 only

B : 1 and 3 only

C : 2 and 3 only

D : 3 and 4 only

Answer: A

Question 2

What does MRP software schedule?

A : Human resource management

B : Tax accounting

C : Executive meetings

D : Production processes

Answer: D

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

GAP Ltd is a growing retail business. It spends a lot of money on buying stock for sale. However, the procurement process is still largely manual. This manual process contains a lot of tasks that are repeated for each procurement event and time consuming. The company management team decides to adopt procure-to-pay (P2P) software in order to eliminate duplicate activities and improve process efficiencies. Which type of cost is GAP targeting?

A : lding costs

B : t of stockouts

C : quisition costs

D : posal costs

Answer: C

Question 5