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| Vendor: | CIPS |
|---|---|
| Exam Code: | L5M10 |
| Exam Name: | Logistics Management |
| Exam Questions: | 88 |
| Last Updated: | November 20, 2025 |
| 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)
Which governing body is responsible for the creation and management of Incoterms rules?
Comprehensive and Detailed Explanation From Exact Extract:
Incoterms are published and maintained by the International Chamber of Commerce (ICC) to define buyer/seller responsibilities for delivery, risk, and costs under international sales contracts. (Reference: CIPS L5M10 Study Guide, Incoterms governance, p. 7)
Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?
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)
In an organisation that has implemented the Theory of Constraint in manufacturing, which of the following is true?
Comprehensive and Detailed Explanation From Exact Extract:
Within TOC, inventory is treated as a liability (it ties up cash and can hide flow problems), contrasting with traditional accounting that books inventory as an asset. (CIPS L5M10 Study Guide, pp. 141--142)
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?
Comprehensive and Detailed Explanation From Exact Extract:
Distribution control focuses on transport execution and delivery performance---monitoring, expediting, and controlling outbound deliveries. Purchasing contract analysis belongs to supply/procurement control; quality control to production/quality; and warehouse budgets to warehousing control. (Reference: CIPS L5M10 Study Guide, ''Controlling activities by function,'' p. 109)
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