Logistics Management (L5M10) Free Practice Test

Question 1

Claudio uses aRe-Order Point (ROP)system for stock replenishment. What is one disadvantage compared with an MRP system?

A. Suppliers are unable to view current stock levels

B. It does not work with forecasts

C. It cannot be used with independent demand items

D. It is a manual system that takes longer to raise orders

Correct Answer: B

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Question 2

In which of the following examples is capacity expressed as aninputcapacity measure?

A. A factory makes 1,000 cupcakes a day

B. A worker sews 10 buttons per hour

C. An oil refineryprocesses 800 barrels of crude oil per day

D. A machine produces 100 widgets per day

Correct Answer: C

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Question 3

Oracle and SAP are examples of which type of system?

A. SCM

B. ERP

C. MRP

D. JIT

Correct Answer: B

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Question 4

Select from the following list the example ofreverse logistics.

A. A distribution centre sends goods to several retail units using the same delivery truck

B. The manufacturer sends completed goods to the customer

C. A retail outlet returns faulty goods to the manufacturer

D. A supplier provides an additional delivery of items to the buyer

Correct Answer: C

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Question 5

The "Net Promoter Score" (NPS) provides a company with an indication of customer satisfaction by answering which question?

A. On a scale of 1-10 did you find the service value for money?

B. How likely are you to recommend the service to a friend?

C. How happy are you with the service delivered?

D. Would you use this service again?

Correct Answer: B

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Question 6

Paul is a Warehouse Manager of plumbing supplies. He is planning to change the layout by placing fast- moving items near the front, slower further back, and rarely used items in separate storage. What type of system is Paul using?

A. HML analysis

B. FSN analysis

C. VED analysis

D. ABC analysis

Correct Answer: B

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Question 7

PLM manages large distribution centres. Goods are not stored when delivered but are prepared immediately for shipment to retail outlets. What type of system is this?

A. Pull-through distribution

B. Distribution channelling

C. Distribution resource planning

D. Cross docking

Correct Answer: D

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Question 8

Which of the following is a type of 2D barcode that can hold large amounts of data and is commonly used by airlines for boarding passes?

A. Codabar

B. QR Code

C. UPC

D. PDF417

Correct Answer: D

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Question 9

Omar is forecasting future demand. Normally he uses three years of sales data, but this year he's been asked to include data back to 2004. Which forecasting technique is he using?

A. Simple linear regression

B. Time series method

C. Moving average technique

D. Exponential smoothing technique

Correct Answer: D

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Question 10

Which pieces of information would you require to calculate aBOM explosure? Select TWO

A. Current inventory levels

B. Price of the materials

C. Lead-time of the materials

D. Materials required to complete an order

Correct Answer: A,D

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CIPS Logistics Management (L5M10) Free Practice Test