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 25, 2026

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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

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 3

The following are examples of scheduled maintenance except...

A : eaning of tank

B : pair signage damage from a recent storm

C : erhauling of machine

D : l changes and regular servicing

Answer: B

Question 4

Which of the following is the formula for calculating the re-order level?

A : erage usage in a lead-time / Required level of safety stock

B : erage usage in a lead-time + Required level of safety stock

C : quired level of safety stock x Average usage in a lead-time.

D : quired level of safety stock – Average usage in a lead-time

Answer: B

Question 5

Which of the following are examples of acquisition costs for the buying organisation? Select TWO that apply.

A : The disposal costs of the assets

B : The costs associated with consumer product sales tax

C : The costs of approving and paying invoices

D : The advertising costs of the marketing company

E : The costs of the goods or materials

Answer: C,E

Page: 1 / 76

Total 380 Questions | Updated On: Mar 25, 2026

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