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CIPS L5M7 Exam Dumps

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L5M7 Pack
Vendor: CIPS
Exam Code: L5M7
Exam Name: Achieving Competitive Advantage Through the Supply Chain
Exam Questions: 88
Last Updated: October 4, 2026
Related Certifications: Level 5 Advanced Diploma in Procurement and Supply
Exam Tags: Advanced Procurement and Supply Chain ProfessionalsSourcing Specialists
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Free CIPS L5M7 Exam Actual Questions

Question No. 1

The 80/20 rule is also commonly referred to as what?

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Correct Answer: B

The Pareto Principle states that approximately 80% of outcomes arise from 20% of causes, applied in supply chain analysis to identify key value contributors.

Short cited extract: ''Pareto (80/20) -- a small number of causes create the majority of effects.'' (L5M7 Study Guide, p.141)


Question No. 2

Which of the following departments within an organisation form part of the Value Chain?

Select THREE.

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Correct Answer: A, B, C

According to Michael Porter's Value Chain, primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Procurement and HR are support activities.

Short cited term: ''primary activities -- logistics, operations, marketing and sales'' (L5M7 Study Guide, p. 76).


Question No. 3

A car manufacturer that accommodates unique and desirable features into design at a premium cost is using which of the following strategies?

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Correct Answer: C

Differentiation Strategy involves offering products with unique attributes that customers value and are willing to pay more for, thus achieving competitive advantage.

Short cited term: ''differentiation -- unique product features at premium price.'' (L5M7 Study Guide, p. 177)


Question No. 4

To analyse the value of inventory held, which data points must be collected? Select TWO.

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Correct Answer: B, C

Inventory valuation requires data on quantity in stock and unit purchase cost. These determine the total inventory value at any given time.

Short cited extract: ''Inventory value = number of items purchase cost.'' (L5M7 Study Guide, p.147)


Question No. 5

Farmer Joe sells wheat and barley. He charges more when demand is high and less when demand falls. What pricing strategy does he follow?

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Correct Answer: C

Dynamic Pricing adjusts prices in real time to reflect market demand and supply conditions, commonly used in commodities.

Short cited term: ''dynamic pricing -- prices adjust to demand fluctuation.'' (L5M7 Study Guide, p. 189)


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