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| Vendor: | CIPS |
|---|---|
| Exam Code: | L5M10 |
| Exam Name: | Logistics Management |
| Exam Questions: | 88 |
| Last Updated: | August 20, 2026 |
| Related Certifications: | Level 5 Advanced Diploma in Procurement and Supply |
| Exam Tags: | Advanced Level Logistics Manager and Supply Chain Coordinators |
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Terry manages a warehouse stocking electronics and has a pilferage (theft) issue. Which of the following would help reduce this issue?
Comprehensive and Detailed Explanation From Exact Extract:
RFID tagging supports item-level identification and can trigger alarms at controlled exit points, helping deter and detect theft. While a WMS improves control and accuracy, RFID directly addresses shrinkage through automated detection. (Reference: CIPS L5M10 Study Guide, RFID uses---waste and pilferage reduction, p. 23)
Baby Ltd manufactures 100 prams each quarter. In Q1, it sold 78 prams. A customer phones in March to order 3 prams for the following month. Is there Availability to Promise (ATP)?
Comprehensive and Detailed Explanation From Exact Extract:
Availability to Promise (ATP) is the portion of inventory or planned production that is not yet committed to existing customer orders. It depends on confirmed orders and forecasted production. Without knowing Q2's confirmed demand, ATP cannot be guaranteed.
(Reference: CIPS L5M10 Study Guide, ATP definition and application, p. 182)
Jerry is a Supply Chain Manager at Barnacles Ltd. He wants a system that enhances integration with suppliers and allows joint visibility of inventory. Which system should he invest in?
Comprehensive and Detailed Explanation From Exact Extract:
CPFR promotes collaborative data sharing and joint visibility between supply chain partners, improving forecasting, replenishment, and inventory management accuracy. Data warehousing and WMS are internal systems; Six Sigma focuses on quality improvement, not collaboration.
(Reference: CIPS L5M10 Study Guide, CPFR systems and supply chain visibility, p. 5)
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?
Comprehensive and Detailed Explanation From Exact Extract:
Pipeline inventory (goods in transit between suppliers and buyers) forms part of total inventory value once ownership transfers (e.g., after payment). Retailer stock is excluded unless under vendor-managed agreements.
(Reference: CIPS L5M10 Study Guide, Inventory types and pipeline inventory, p. 40)
Jolie is a Warehouse Manager proposing a Warehouse Management System (WMS). Which of the following are advantages of using a WMS? Select THREE.
Comprehensive and Detailed Explanation From Exact Extract:
A WMS improves inventory accuracy, offers real-time tracking, and reduces labour costs via automation. It supports pull-based systems (demand-driven), not push, and does not guarantee new business.
(Reference: CIPS L5M10 Study Guide, Warehouse management technology benefits, p. 90)
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