L5M7 Paper 1 – Free

L5M7 Paper 1 – Free

Test your knowledge with this practice exam

25
Questions
60
Minutes

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Question 1 of 25

1 Verdana Consumer Goods has mapped its supply chain from cotton farms in India through spinning mills, fabric manufacturers, garment factories, and distribution centres to its retail stores. Its procurement director observes that multiple raw material suppliers feed into a single finished goods supplier. Which statement most accurately describes the difference between what Verdana is observing and a traditional supply chain?
2 Which of the following best describes the primary purpose of Supply Chain Management (SCM)?
3 Kalahari Logistics plc manages distribution for a range of consumer goods manufacturers. Its data shows that small weekly demand variations of ±3% at retail level result in order swings of ±25% at the raw materials tier. Which of the following best explains why this amplification occurs?
4 Verdana Consumer Goods is experiencing significant demand amplification across its supply network. Which TWO of the following actions would most directly mitigate the bullwhip effect? Select TWO.
5 In supply chain terminology, which of the following correctly identifies an 'upstream' activity for Hartfield Energy Co., an energy equipment manufacturer?
6 Which of the following is NOT identified as a cause of the bullwhip effect in supply chains?
7 The SCOR (Supply Chain Operations Reference) model encompasses five core management processes. Which of the following correctly lists all five?
8 Consider the following statements about supply chains and supply networks: 1. A supply chain is characterised by a linear, sequential flow from raw material to end customer. 2. A supply network involves multiple interconnected tiers of suppliers and more realistically represents modern procurement. 3. Supply Chain Management (SCM) focuses exclusively on physical goods movement rather than information flows. 4. The bullwhip effect is a phenomenon unique to supply networks and does not occur in linear supply chains. Which TWO statements are correct?
9 Verdana Consumer Goods has installed a shared demand visibility portal giving all Tier 1 and Tier 2 suppliers access to point-of-sale data. After 12 months, order volatility at the raw material tier has dropped from ±28% to ±6%. Its Head of Supply Chain is now evaluating whether to extend portal access to Tier 3 suppliers — raw material extractors in emerging markets with limited IT infrastructure. Which evaluation is most appropriate?
10 A supply chain for Crestfield Retail Group has four tiers. At the retail level, demand varies by ±5%. Historical data shows the bullwhip amplification factor between each consecutive tier is approximately 2×. What is the expected order variability at the Tier 3 (raw material) level?
11 Aquila Aerospace Ltd purchases titanium fasteners from a specialist component supplier. That component supplier, in turn, sources raw titanium from a mining company. In Aquila's supply structure, which tier does the mining company occupy?
12 Hines (1994) identified network sourcing as a hybrid between Japanese and Western sourcing practices. Which of the following is a key feature that distinguishes network sourcing from a purely arms-length Western approach?
13 IKEA's IWAY (IKEA Way) code of conduct is a component of its supply network management approach. Which of the following best explains its strategic purpose?
14 Which of the following is NOT a feature of the network sourcing model as described by Hines (1994)?
15 In Porter's Value Chain (1985), activities are classified as either primary or support. Which TWO of the following are classified as PRIMARY activities? Select TWO.
16 Elmbrook Solutions, a professional services firm, has conducted a value chain analysis and identified that its client reporting process consumes 20% of staff time but is consistently rated as low value by clients. The process is standardised and could be replicated by a specialist third party. Which strategic response is most appropriate?
17 NexaBuild Ltd has worked with a specialist structural steel supplier for 14 years. The two organisations share production schedules, have co-developed proprietary joint specifications, and the steel supplier has co-located a technical team at NexaBuild's engineering headquarters. Which position on the supply chain relationship spectrum best describes this relationship?
18 Which of the following best characterises an adversarial supply chain relationship?
19 In the 6-stage sourcing process described in CIPS L5M7, which stage immediately follows 'market analysis and supplier identification'?
20 Verdanix Enterprises is reviewing how its supply chain creates competitive advantage. Its analysis reveals that suppliers consistently deliver components three weeks ahead of the industry average lead time, and that two Tier 1 suppliers have contributed six patented innovations in the past 18 months. Which TWO of the five competitive dimensions are most clearly evidenced? Select TWO.
21 Which of the following individuals is most closely associated with the development of Total Quality Management, specifically through the concept of 'zero defects'?
22 Which of the following is NOT a core objective of Total Quality Management (TQM)?
23 Aquila Aerospace Ltd uses Statistical Process Control (SPC) charts to monitor its component manufacturing processes. The system flags an alert when a measurement falls outside the Upper or Lower Control Limits. What type of variation does this alert signal?
24 Hartfield Energy Co. has 500 active suppliers. Its analysis shows that 100 of these suppliers (20%) account for 78% of its total procurement spend. Which analytical tool does this finding directly reflect, and what is the recommended procurement response?
25 In the Cost of Quality (CoQ) framework, costs are categorised into four types. Which TWO of the following are classified as FAILURE costs? Select TWO.

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