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CIPS L5M10 Exam Syllabus Topics:

Topic

Details

Topic 1

Understand Capacity Planning and Control in Logistics Management: This section of the exam measures the skills of Operations Planners and focuses on the techniques and systems used to manage capacity, demand, and resource planning across logistics activities. It explains how organizations balance planning with real-time control, adjust to fluctuating demand, and schedule workloads effectively. Candidates are expected to understand capacity concepts, constraints, demand forecasting, capacity measurement, and different planning approaches such as level planning, chase demand strategies, and demand management methods. The section also examines the use of technology in capacity planning, particularly Materials Requirements Planning (MRP), MRP II, ERP systems, master production scheduling, inventory data, and bills of materials, while recognizing the limitations of these tools. Finally, it covers the role of reverse logistics, emphasizing the handling of customer returns, the development of return policies, and how returned items are reintegrated into the supply chain.

Topic 2

Analyse the Role and Activities of Logistics Management: This section of the exam measures the skills of Logistics Managers and covers the essential concepts, functions, and strategic importance of logistics within modern supply chains. It explains what logistics is, how its key elements work together—such as transportation, warehousing, inventory, packaging, information flow, and security—and how these components support procurement, production, distribution, after-sales processes, and product disposal. The section explores how logistics integrates with broader supply chain management and introduces the idea of total logistics and total cost thinking, showing how multimodal transport and pipeline inventory contribute to efficiency. Candidates must understand how logistics creates competitive advantage by aligning operations with business strategy, managing customer service levels, measuring service quality, and recognizing its financial impact. This heading also evaluates the increasing role of technology in logistics, including barcoding, RFID, e-fulfilment systems, warehouse management systems, automated data capture, and the integration of digital tools across the logistics network.

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CIPS Logistics Management Sample Questions (Q44-Q49):

NEW QUESTION # 44
When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs wouldnotbe included in the calculation?

A. Obsolescence
B. Warehouse staff uniforms
C. Insurance
D. Pilferage

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TCO for inventory focuses on all direct and indirect costs incurred in holding stock - such as pilferage (theft), obsolescence (unsellable items), and insurance (risk protection for loss/damage). Staff uniforms, however, are general overheads unrelated to inventory holding cost. (Reference:CIPS L5M10 Study Guide,
"Costs of holding inventory," p. 27)

NEW QUESTION # 45
Cleo Manufacturing has introduced a new Electronic Data Interchange (EDI) system. Which of the following is an advantage of using this technology?

A. It allows humans to check the work for accuracy
B. It simplifies the supply chain
C. It is cheap to introduce
D. It replaces emails

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
EDI automates structured, computer-to-computer exchange of business documents (e.g., POs, ASNs, invoices), replacing manual, error-prone channels such as emails and paper and reducing rekeying/latency. It typically requires investment and integration effort; it does not remove the underlying supply chain complexity, and by design reduces-not adds-manual human checking. (Reference: CIPS L5M10 Study Guide, EDI-purpose and benefits, p. 81)

NEW QUESTION # 46
Yolo Inc. is a low-cost manufacturer with tight margins. To remain profitable, logistics must help reduce costs. Which transportation strategy best supports this aim?

A. Eliminate all activities that do not provide value add
B. Manage inbound logistics to strict KPIs to reduce waste and delays
C. Brand all fleet vehicles with company logos
D. Run a competitive tender annually to secure the cheapest logistics provider

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cost-leadership logistics requires efficiency in inbound and outbound flows. Managing inbound logistics using KPIs (e.g., vehicle turnaround time, delivery reliability) reduces time waste and unnecessary costs.
Annual tenders or branding efforts do not guarantee cost reduction. (Reference:CIPS L5M10 Study Guide,
"Cost as a business strategy," p. 53)

NEW QUESTION # 47
RFID tags are commonly used in warehousing to improve speed and accuracy. Which of the following functions can RFID technology complete?

A. Demand planning
B. Track and trace
C. Storage
D. Logistics

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
RFIDenablesreal-time tracking and tracingof goods through automated scanning. Active tags continuously transmit location; passive tags activate upon scanning.
(Reference: CIPS L5M10 Study Guide, RFID applications in warehousing, p. 84)

NEW QUESTION # 48
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?

A. Bill of materials
B. Peg record
C. CSV file
D. Requirement record

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Apeg recordprovides "pegging," i.e., a traceable link betweendemand(e.g., a customer order/MPS line) and the specificsupplycreated to satisfy it. (CIPS L5M10 Study Guide, p. 186)

NEW QUESTION # 49
......

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