Logistics Management - L5M10 Exam Practice Test

Question 1

PLM manages large distribution centres. Goods are not stored when delivered but are prepared immediately for shipment to retail outlets. What type of system is this?

A. Cross docking

B. Pull-through distribution

C. Distribution resource planning

D. Distribution channelling

Correct Answer: A

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Question 2

A Transport Management System (TMS) comprises several functions. Which of the following is NOT one of these?

A. Fleet maintenance

B. Planning and decision-making

C. Transport execution

D. Measurement and reporting

Correct Answer: A

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Question 3

Yolo Inc. is a low-cost manufacturer with tight margins. To remain profitable, logistics must help reduce costs. Which transportation strategy best supports this aim?

A. Eliminate all activities that do not provide value add

B. Brand all fleet vehicles with company logos

C. Manage inbound logistics to strict KPIs to reduce waste and delays

D. Run a competitive tender annually to secure the cheapest logistics provider

Correct Answer: C

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Question 4

Simon, CEO of a toy manufacturer, imports components from China, paid for in advance, with 2-week delivery. He defines inventory as only what is in the warehouse and factory. Is this correct?

A. Yes - but only completed toys count as inventory

B. No - Simon must also consider inventory in transit from China

C. No - Simon must also consider the inventory held by retailers

D. Yes - inventory can be held at different levels

Correct Answer: B

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Question 5

Mobile Ltd offers customers £50 to return old or broken phones. What is the most likely reason?

A. Recovery

B. Re-manufacture

C. Reuse

D. Recycle

Correct Answer: A

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Question 6

Which of the following are types of Auto-Identification and Data Capture (AIDC) technology used in logistics? Select THREE

A. Electronic data interchange

B. Smartphones

C. Barcodes

D. Voice recognition

E. Biometrics

Correct Answer: C,D,E

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Question 7

Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?

A. It allows humans to check the work for accuracy

B. It replaces emails

C. It simplifies the supply chain

D. It is cheap to introduce

Correct Answer: B

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Question 8

Which of the following items can be classed as inventory? Select THREE

A. Transport vehicles

B. Finished goods

C. Components

D. Work in progress

E. Warehouses

Correct Answer: B,C,D

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Question 9

Patrick wants a tool that can visually display information on planning, scheduling and track production activities within a distribution centre. Which would best suit his requirement?

A. PERT Analysis

B. Linear Programming

C. Gantt Chart

D. Critical Path

Correct Answer: C

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Question 10

Demand for a product can be classified as either dependent or independent. Which of the following companies produces adependent demanditem?

A. A dairy farm producing organic milk

B. An online clothing retailer

C. An ice cream van operating from April to September

D. A company that produces tyres for cars

Correct Answer: D

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CIPS Logistics Management - L5M10 Exam Practice Test

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