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CIPS Logistics Management Sample Questions (Q38-Q43):

NEW QUESTION # 38
"Logistics is the flow of goods along a supply chain." Is this sentence true?

A. Yes, but logistics also includes the flow of intangible items such as information and knowledge
B. Yes - logistics is the flow of goods, but only downwards along the supply chain
C. No - logistics is the management of suppliers
D. No - logistics is the management of supply and demand along the supply chain

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Logistics encompasses the efficient flow and storage of goods, services, and related information from origin to consumption. It is not limited to physical goods or one direction; information and knowledge flows are integral. (Reference: CIPS L5M10 Study Guide, definition and scope of logistics, p. 3)

NEW QUESTION # 39
Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?

A. B
B. C
C. A
D. Any - ABC does not categorise by cost

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
ABC (Pareto) classification typically groups a small proportion of high-value items as "A" (often 10-20% of items accounting for a large share of value), with "B" and "C" representing progressively lower value importance. (Reference: CIPS L5M10 Study Guide, ABC inventory categorisation, p. 9)

NEW QUESTION # 40
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?

A. It is cheap to introduce
B. It simplifies the supply chain
C. It allows humans to check the work for accuracy
D. It replaces emails

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)

NEW QUESTION # 41
A Transport Management System (TMS) comprises several functions. Which of the following is NOT one of these?

A. Measurement and reporting
B. Fleet maintenance
C. Transport execution
D. Planning and decision-making

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Core TMS functions typically include: planning & decision-making (e.g., carrier/route selection), transport execution (e.g., tendering, dispatch), transport follow-up/visibility, and measurement & reporting (KPIs).
Fleet maintenance is generally a separate fleet/asset management function, not a standard TMS core function.
(Reference: CIPS L5M10 Study Guide, TMS functions, p. 91)

NEW QUESTION # 42
Bradbury's Ltd manufactures chocolate and uses an ERP system. Which of the following would be included in theMaster Production Schedule (MPS)?

A. The profit margin of each chocolate bar
B. The number of customers served by Bradbury's
C. The rate at which chocolate must be produced in Q1
D. The full list of ingredients to order

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The MPS defineswhatproducts will be made,in what quantities, andwhen. It is driven by sales forecasts, existing inventory, and resource capacity. Ingredients (A) are part of the Bill of Materials, not the MPS.
(Reference: CIPS L5M10 Study Guide, Master Production Scheduling, p. 180)

NEW QUESTION # 43
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