Key details for this exam, checked against the published exam outline
Each question shows the correct answer and an explanation of why it is right
What is the name given to an additional file attached to an inventory file that links a requirement to the specific order or component that triggered it?
Comprehensive and Detailed Explanation From Exact Extract:
A peg record provides ''pegging,'' i.e., a traceable link between demand (e.g., a customer order/MPS line) and the specific supply created to satisfy it. (CIPS L5M10 Study Guide, p. 186)
What is the name of the emerging tool that can help companies improve supply chain visibility across macro-environmental factors such as political, environmental, and social changes?
Comprehensive and Detailed Explanation From Exact Extract:
Supply Chain Event Management (SCEM) systems monitor and compare planned versus actual supply chain events. They issue alerts when disruptions or macro-environmental changes (e.g., political instability or weather) cause deviations from plan, enabling rapid corrective actions. (Reference: CIPS L5M10 Study Guide, SCEM section, p. 40)
In a logistics system, if the production rate increases, which of the following is true?
Comprehensive and Detailed Explanation From Exact Extract:
An increase in the production rate generally leads to an increase in the workload arrival rate --- the rate at which items or tasks enter the system for processing. This relationship reflects flow interdependence between system inputs and production capacity. The relationship among production rate, throughput rate, and waiting rate is visually represented in logistics process flow diagrams.
(Reference: CIPS L5M10 Study Guide, Flow management and capacity relationships, p. 132)
Helmets Ltd produces hard hats. Which of the following sentences relates to the company's capacity?
Comprehensive and Detailed Explanation From Exact Extract:
Capacity describes the rate of output that can be produced under normal operating conditions (e.g., ''120 helmets per day''). Headcount or machine hours are capacity inputs, not capacity measures.
(Reference: CIPS L5M10 Study Guide, Understanding capacity and throughput, pp. 134--135)
Triple 0 Logistics is a new company using Competitive Strategy to stand out. Which of the following is an example of Service as a Business Strategy?
Comprehensive and Detailed Explanation From Exact Extract:
A service-based strategy focuses on improving customer convenience and satisfaction. Offering flexible delivery slots enhances service differentiation. Electric fleets relate to quality; packaging optimisation/reduction address cost strategy.
(Reference: CIPS L5M10 Study Guide, Service and cost strategies, p. 54)
In storing which of the following inventory types are you most likely to see a FIFO (First In, First Out) system? Select TWO.
Comprehensive and Detailed Explanation From Exact Extract:
FIFO ensures older stock is issued first, preventing spoilage or expiry. It's essential for perishable goods (food) and time-sensitive stock (cosmetics). For durable goods, FIFO is less critical.
(Reference: CIPS L5M10 Study Guide, Inventory management methods and systems, p. 13)
Which of the following statements about Sales and Operations Planning (S&OP) are TRUE? Select TWO
Comprehensive and Detailed Explanation From Exact Extract:
S&OP aligns aggregate demand and supply by planning future resource levels, typically on a rolling monthly cycle. It is explicitly cross-functional, involving operations/logistics, marketing/sales, finance, and HR to reconcile a single plan. While finance input is important, S&OP is not merely a financial plan, and external factors---including competitor actions---are considered in demand assumptions. (Reference: CIPS L5M10 Study Guide, S&OP overview, p. 112)
Exam domains verified against: Official CIPS L5M10 exam guide, last checked October 2026.
Understanding what logistics means and its core elements including information integration, transportation, inventory management, warehousing, material handling, packaging and security. This domain covers how logistics sits within supply chain management and the different areas where logistics operates: procurement, production, distribution, after-sales and disposals.
Examining how organisations balance planning and control activities, respond to demand fluctuations and optimise loading, sequencing and scheduling of logistics operations. These techniques form the foundation for effective capacity management.
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