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CIPS L5M7 Exam Questions

Vendor

CIPS

Exam Code

L5M7

Exam Name

Achieving Competitive Advantage Through the Supply Chain

Exam Duration

90 Minutes

Total Questions

88

$ 40

PDF VERSION

DEMO QUESTIONS

Q1:

What does ISO 9001 refer to?

A: Environment management

B: Risk management

C: Supply chain management

D: Quality management

Correct Answer: D
ISO 9001 sets the framework for quality management systems (QMS), based on principles such as customer focus, leadership, and improvement. Short extract: ”ISO 9001—quality management.” (L5M7 Study Guide, p.122)

Q2:

Six Sigma is only suitable for the manufacturing industry. Is this correct?

A: Yes -- it reduces defects in the supply chain

B: Yes -- it's an excellent way to reduce costs

C: No -- it can be used across all industries and delivers bottom-line savings

D: No -- it's not suitable for manufacturing

Correct Answer: C
Six Sigma applies universally to manufacturing, services, and administrative processes, improving quality and efficiency.

Short cited term: ”applicable across all sectors to improve process performance.” (L5M7 Study Guide, p. 154)

Q3:

A supply chain that has evolved to include multiple layers of interdependence on members both upstream and downstream is commonly known as what?

A: A Supply Network

B: A Supply Net

C: A Supply Web

D: A Supply Stream

Correct Answer: A

Q4:

Trust is a dynamic concept required in partnership relationships. Which of the following are part of the five trust components important in supply chains?

A: Integrity

B: Competence

C: Loyalty

D: Power

E: Charm

Correct Answer: A, B, C
Trust in supply chains is built on components including integrity, competence, loyalty, openness, and fairness. Short extract: ”key trust components: integrity, competence, loyalty, openness, fairness.” (L5M7 Study Guide, Domain 3.4 section)

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