CIPS Level 2 – Certificate in Procurement andSupply OperationsModule 5 – Inventory, Logistics and ExpeditingSAMPLE EXAM QUESTIONSOBJECTIVE RESPONSE QUESTIONS AND ANSWERSThe correct answer will be identified as [key]1Leading global excellence in procurement and supplyL2M5 Sample Exam Questions Sep 2018
Q1. Which of the following explains the actions involved as part of an efficient expediting system?a. Checking requirements for export of goods from another countryb. Maintaining contact with important suppliers to reduce the likelihood of problems with orders[key]c. Updating users on progress and ensuring speedy release of the purchase orderd. Ensuring invoices are checked and supplier payment is not delayedLO: 3AC: 3.2Q2. Why might an organisation hold safety stock?a.b.c.d.To minimise the risk of stock outs [key]To increase stock recording accuracyTo reduce order and handling costsTo utilise available storage capacityLO: 1AC: 1.1Q3. Which of the following is an example of why an organisation might decide to hold inventory?a)b)c)d)To help production look busyTo maintain service level agreements [key]To make best use of warehousesTo maintain smooth productionLO: 1AC: 1.22L2M5 Exam Exemplar Questions Sep 2018
Q4. A example of system used to control inventory is a.b.c.d.TQMMRP [key]NLPOGMLO: 1AC: 1.3Q5. Drag and drop the correct option into the blank space.can be described as “the management of the flow of goods and services between the pointof origin and the point of consumption in order to meet customer requirements”.Logistics [key], Operations, Organisational success, ProcurementLO: 2AC: 2.1Q6. The rules that are used internationally to define the way in which goods can be purchased are knownas a.b.c.d.land and sea termsopen bordersclosed bordersincoterms 2010 [key]LO: 2AC: 2.33L2M5 Exam Exemplar Questions Sep 2018
Q7. Which of the following documentation would you associate with the transportation of supplies?a.b.c.d.SpecificationConsignment note [key]Purchase orderSupplier catalogueLO: 2AC: 2.5Q8. One of the major problems of transporting goods by sea is a.b.c.d.salt ingresslosing the ship in a stormtime of delivery [key]excessive costLO: 2AC: 2.2Q9. Air freight is often not considered to be an option to transport goods because a.b.c.d.aircraft can crashit is very expensive [key]the pressure at height can damage goodsloading is a problemLO: 2AC: 2.24L2M5 Exam Exemplar Questions Sep 2018
Q10. A stock out may lead to a.b.c.d.better use of warehouse spacereputational damage for the organisation [key]identifying ways to be more efficientincreased value for moneyLO: 3AC: 3.15L2M5 Exam Exemplar Questions Sep 2018
CIPS Level 2 – Certificate in ... To maintain service level agreements [key] c) To make best use of warehouses d) To maintain smooth production LO: 1 AC: 1.2 . 3 L2M5 Exam Exemplar Questions Sep 2018 Q4. A example of system used to control inventory is … a. TQM b. MRP [key] c. NLP d. OGM LO: 1 AC: 1.3 Q5. Drag and drop the correct option into the blank space. can be described as “the ...