Free L5M10 Exam Braindumps
Logistics Management Questions 11–15 (page: 4)

Updated On: 10-Feb-2026

Oracle and SAP are examples of which type of system?

  1. MRP
  2. ERP
  3. SCM
  4. JIT

Answer(s): B

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

Enterprise Resource Planning (ERP) platforms integrate multiple enterprise functions (e.g., finance, procurement/supply, manufacturing, HR, customer service) into a single system and database. Oracle and SAP are cited as leading ERP vendors.


Reference:

CIPS L5M10 Study Guide, ERP overview and scope, p. 73)



The "Net Promoter Score" (NPS) provides a company with an indication of customer satisfaction by answering which question?

  1. How happy are you with the service delivered?
  2. Would you use this service again?
  3. On a scale of 1­10 did you find the service value for money?
  4. How likely are you to recommend the service to a friend?

Answer(s): D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

NPS is a single-question metric asking customers how likely they are to recommend the product/service to others (typically on a 0­10 scale). It is widely used as a proxy for loyalty and satisfaction.


Reference:

CIPS L5M10 Study Guide, customer satisfaction measures--NPS, p. 62



Green Frog Ltd is a consultancy with ~50 customers. The CEO plans to use a Cost-to-Serve (CTS) tool to understand customer profitability. Is this the right approach?

  1. Yes -- Cost to Serve will allow identification of unprofitable customers
  2. Yes -- it is expensive but provides high visibility
  3. No -- all customers are equally profitable if they pay the same rates
  4. No -- use Total Cost of Ownership (TCO) instead

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

Cost-to-Serve analyses end-to-end activities and resources consumed to serve specific customers or segments, exposing variation in profitability (e.g., delivery distance, visit frequency, handling complexity). It is appropriate for finding unprofitable customers. CTS is not inherently "expensive," and TCO focuses on lifecycle cost of acquiring/owning goods--not customer profitability.


Reference:

CIPS L5M10 Study Guide, Cost-to-Serve concept and uses, p. 61



In which circumstance does the supplier hold the power in negotiations?

  1. Low-value contract, high market risk
  2. High-value contract, low market risk
  3. Low-value contract, low market risk
  4. High-value contract, low market risk

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

The supplier positioning/power matrix shows supplier power increases when the buyer's spend is low (low value to the supplier) and market risk is high (limited alternatives, volatility). Buyer power is strongest with high contract value and low market risk.


Reference:

CIPS L5M10 Study Guide, Supplier Positioning Model and power dynamics, p. 71



Customer service levels can be measured using Service Level Agreements (SLAs).
Which of the following are "hard" measures typically found in an SLA? Select THREE

  1. Stock availability
  2. Seriousness of complaints
  3. First-time fix rate
  4. On-time delivery
  5. Level of customer satisfaction

Answer(s): A,C,D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

"Hard" measures are objective, quantifiable performance indicators--typical logistics/service measures include stock availability, first-time fix rate, and on-time delivery. Measures such as complaint seriousness and perceived satisfaction are "soft" (more subjective) but still useful.


Reference:

CIPS L5M10 Study Guide, SLAs--hard vs soft measures, p. 60



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