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    Inventory, Logistics and Expediting (L2M5) : CIPS Level 2 - Certificate in Procurement and Supply Operations

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    The document contains 20 sample exam questions for the CIPS Level 2 – Certificate in Procurement and Supply Operations in the subject areas of Inventory, Logistics and Expediting. Each question includes the learning outcome and assessment criteria it relates to, and lists the correct answer. The questions cover topics such as types of inventory, forecasting methods, transportation terms, reasons for holding inventory, and consequences of stock outs.

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    Inventory, Logistics and Expediting (L2M5) : CIPS Level 2 - Certificate in Procurement and Supply Operations

    Uploaded by

    Hus Nia
    626 views8 pages
    The document contains 20 sample exam questions for the CIPS Level 2 – Certificate in Procurement and Supply Operations in the subject areas of Inventory, Logistics and Expediting. Each question includes the learning outcome and assessment criteria it relates to, and lists the correct answer. The questions cover topics such as types of inventory, forecasting methods, transportation terms, reasons for holding inventory, and consequences of stock outs.

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    The document contains 20 sample exam questions for the CIPS Level 2 – Certificate in Procurement and Supply Operations in the subject areas of Inventory, Logistics and Expediting. Each question includes the learning outcome and assessment criteria it relates to, and lists the correct answer. The questions cover topics such as types of inventory, forecasting methods, transportation terms, reasons for holding inventory, and consequences of stock outs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    626 views8 pages

    Inventory, Logistics and Expediting (L2M5) : CIPS Level 2 - Certificate in Procurement and Supply Operations

    Uploaded by

    Hus Nia
    The document contains 20 sample exam questions for the CIPS Level 2 – Certificate in Procurement and Supply Operations in the subject areas of Inventory, Logistics and Expediting. Each question includes the learning outcome and assessment criteria it relates to, and lists the correct answer. The questions cover topics such as types of inventory, forecasting methods, transportation terms, reasons for holding inventory, and consequences of stock outs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    CIPS Level 2 – Certificate in Procurement and Supply

    Operations

    Inventory, Logistics and


    Expediting [L2M5]

    Sample Exam Questions (Objective Response)

    The correct answer will be listed below each question

    L2M5 Sample Questions April 2020


    Q1. Stock that is included in unfinished products throughout a factory is referred to as?

    a. Work in process
    b. Work in progress
    c. Work in purchase
    d. Work in procurement

    LO: 1
    AC: 1.1
    Correct answer: B

    Q2. ABC analysis of stock is a method derived from which theory?

    a. Pareto 80/20 Rule


    b. Porter’s 5 Forces
    c. STEEPLE analysis
    d. Kraljic Matrix

    LO: 1
    AC: 1.1
    Correct answer: A

    Q3. Hannah has set up an ordering system that has products arriving at the warehouse door one hour before
    they are needed on the shop floor. What type of system has Hannah set up?

    a. JIT
    b. ERP
    c. ABC
    d. MRP

    LO: 1
    AC: 1.3
    Correct answer: A

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q4. Due to an increase in inventory, Steve has had to procure some additional racking. To what type of cost
    should the racking be allocated?

    a. Indirect
    b. Variable
    c. Direct
    d. Fixed

    LO: 1
    AC: 1.2
    Correct answer: C

    Q5. Gathering data from previous sales, adding a percentage on for a known upward trend in purchases from
    customers’ results in what form of forecasting?

    a. Objective
    b. Subjective
    c. Accurate
    d. Unreliable

    LO: 1
    AC: 1.3
    Correct answer: A

    Q6. Arranging for a purchase order to be transported by rail rather than road could provide which benefit to
    an organisation?

    a. Reduced environmental impact


    b. Higher ethical risk
    c. Slower delivery
    d. Less likely to incur damage

    LO: 2
    AC: 2.2
    Correct answer: A

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q7. DDP, EXW and FOC are examples of what?

    a. Contracts
    b. Tenders
    c. Incoterms
    d. Standard Terms

    LO: 2
    AC: 2.3
    Correct answer: C

    Q8. What is the name for the document which states where a product in transit started its life?

    a. Certificate of conformance
    b. Certificate of authentication
    c. Certificate of incorporation
    d. Certificate of origin

    LO: 2
    AC: 2.5
    Correct answer: D

    Q9. Juan has been awarded a contract with a low cost country supplier. This is the first time Juan has dealt
    with the new supplier. The supplier does not want to supply Juan until he has received payment, but Juan
    does not want to pay until he has the goods. Which of the below options is the best solution to the problem
    Juan and his supplier face?

    a. Letter of credit
    b. Pro forma
    c. Credit terms
    d. BACS/CHAPS payment

    LO: 2
    AC: 2.5
    Correct answer: A

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q10. Which of the following statements best describe obsolescent stock?

    a. Stock that has a use to another organisation


    b. Stock that is at the end of its lifecycle
    c. Stock that is appreciating in value
    d. Stock that is held as JIT inventory

    LO: 1
    AC: 1.1
    Correct answer: B

    Q11. Which of the following explains the actions involved as part of an efficient expediting system?

    a. Checking requirements for export of goods from another country


    b. Maintaining contact with important suppliers to reduce the likelihood of problems with
    orders
    c. Updating users on progress and ensuring speedy release of the purchase order
    d. Ensuring invoices are checked and supplier payment is not delayed

    LO: 3
    AC: 3.2
    Correct answer: B

    Q12. Why might an organisation hold safety stock?

    a. To minimise the risk of stock outs


    b. To increase stock recording accuracy
    c. To reduce order and handling costs
    d. To utilise available storage capacity

    LO: 1
    AC: 1.1
    Correct answer: A

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q13. Which of the following is an example of why an organisation might decide to hold inventory?

    a. To help production look busy


    b. To maintain service level agreements
    c. To make best use of warehouses
    d. To maintain smooth production

    LO: 1
    AC: 1.2
    Correct answer: B

    Q14. A example of system used to control inventory is …

    a. TQM
    b. MRP
    c. NLP
    d. OGM

    LO: 1
    AC: 1.3
    Correct answer: B

    Q15. 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 point
    of origin and the point of consumption in order to meet customer requirements”.

    Logistics, Operations, Organisational success, Procurement

    LO: 2
    AC: 2.1
    Correct answer: Logistics

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q16. The rules that are used internationally to define the way in which goods can be purchased are
    known as …

    a. land and sea terms


    b. open borders
    c. closed borders
    d. incoterms

    LO: 2
    AC: 2.3
    Correct answer: D

    Q17. Which of the following documentation would you associate with the transportation of
    supplies?

    a. Specification
    b. Consignment note
    c. Purchase order
    d. Supplier catalogue

    LO: 2
    AC: 2.5
    Correct answer: B

    Q18. One of the major problems of transporting goods by sea is …

    a. salt ingress
    b. losing the ship in a storm
    c. time of delivery
    d. excessive cost

    LO: 2
    AC: 2.2
    Correct answer: C

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
    Q19. Air freight is often not considered to be an option to transport goods because …

    a. aircraft can crash


    b. it is very expensive
    c. the pressure at height can damage goods
    d. loading is a problem

    LO: 2
    AC: 2.2
    Correct answer: B

    Q20. A stock out may lead to …

    a. better use of warehouse space


    b. reputational damage for the organisation
    c. identifying ways to be more efficient
    d. increased value for money

    LO: 3
    AC: 3.1
    Correct answer: B

    Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question

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