Free CIPS L5M7 Practice Exam Questions and Answers 2026

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Total 122 Questions | Updated On: Apr 02, 2026

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Question 1

Six-Sigma is only suitable to the manufacturing industry. Is this correct?

A : yes- this reduces defects in the supply chain

B : yes- it is an excellent way of reducing costs

C : no- six sigma can be used across all industries and enables bottom-line savings

D : no- six sigma is not suitable for the manufacturing industry

Answer: C

Question 2

An organisation can leverage effective Supply Chain Management to deliver Competitive Advantage. What is meant by Competitive Advantage?

A : Outperforming competitors financially

B : Becoming the leader in the marketplace through working closely with the supply chain

C : A benefit that an organisation can use to out perform competitors in the marketplace

D : Cost savings by narrowing the supply chain

Answer: C

Question 3

ABC produces electronics and operates in a highly competitive industry in which new products are launched frequently. ABC has to be on top of new fashions and trends and be able to produce new, innovative forms of electronics in order to survive in the marketplace. Which of the following supply chain strategies should ABC employ?

A : Lean

B : Just in Time

C : Responsive

D : Agile

Answer: D

Question 4

Which of the following are advantages of using local sourcing? Select TWO

A : higher costs

B : less environmental impact

C : cheaper

D : flexibility for support and maintenance

E : higher quality

Answer: B,D

Question 5

2021-12-07-20-47-31-e2d86f27b567b81e2029955b255da44e Which of the following will you put into box 2?

A : Strategic

B : Bottleneck

C : Tactical

D : High Risk

Answer: B

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Total 122 Questions | Updated On: Apr 02, 2026

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