2026 Useful L5M7–100% Free Exam Questions Answers | L5M7 Testing Center

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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q22-Q27):

NEW QUESTION # 22
A pricing approach in which avalue pointis decided upon and maintained for aprescribed periodis known as what?

Answer: B

Explanation:
Fixed pricingmaintains aconstant pricefor a defined period regardless of market changes, providing stability for both buyer and supplier.
Short cited extract: "Fixed pricing - price remains constant for an agreed duration." (L5M7 Study Guide, p.
188)
Reference:CIPS L5M7 Study Guide, p.188.


NEW QUESTION # 23
What doesISO 9001refer to?

Answer: C

Explanation:
ISO 9001sets the framework forquality management systems(QMS), based on principles such as customer focus, leadership, and improvement. Short extract: "ISO 9001-quality management." (L5M7 Study Guide, p.122) Reference:L5M7 Study Guide, p.122.


NEW QUESTION # 24
Which of the following areadvantages of using local sourcing? Select TWO.

Answer: B,D

Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.


NEW QUESTION # 25
Which approach to quality involvesmanufacturing only what is required, when it is required?

Answer: D

Explanation:
Just-in-Time (JIT)manufacturing produces goodsonly when required, eliminating excess inventory and waste, ensuring smooth, efficient flow.
Short cited term: "make only what is needed, when needed" (L5M7 Study Guide, p. 30).
Reference:CIPS L5M7 Study Guide, p. 30.


NEW QUESTION # 26
Just-in-Time (JIT)manufacturing is a form of which organisational strategy?

Answer: B

Explanation:
JIT is aLeantechnique to minimise inventory and produce "only what is needed, when needed," thereby removing waste from processes. Short cited phrase: "only when needed" (L5M7 Study Guide, p.111).
Reference:CIPS L5M7 Study Guide, p.111.


NEW QUESTION # 27
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