Free L5M10 Exam Braindumps
Logistics Management Questions 36–40 (page: 9)

Updated On: 10-Feb-2026

Which of the following are advantages of using an ERP system over an MRP system? Select TWO.

  1. Centralised databases
  2. No inputs are required
  3. Cheaper to implement
  4. System is multi-lingual

Answer(s): A,D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

ERP extends the MRP concept across the whole enterprise. It centralises data (reducing duplication and error) and supports multiple languages and currencies for global operations. It is, however, more complex and costly to implement than MRP.


Reference:

CIPS L5M10 Study Guide, ERP evolution from MRP, pp. 175­176



Claudio uses a Re-Order Point (ROP) system for stock replenishment.
What is one disadvantage compared with an MRP system?

  1. Suppliers are unable to view current stock levels
  2. It cannot be used with independent demand items
  3. It is a manual system that takes longer to raise orders
  4. It does not work with forecasts

Answer(s): D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

ROP systems trigger replenishment when inventory hits a set minimum. They are reactive and do not account for forecasted changes in demand (e.g., seasonality). MRP, by contrast, is proactive--factoring in future demand forecasts and production schedules.


Reference:

CIPS L5M10 Study Guide, Re-Order Point systems and limitations, pp. 170­171



Omar is forecasting future demand. Normally he uses three years of sales data, but this year he's been asked to include data back to 2004.
Which forecasting technique is he using?

  1. Moving average technique
  2. Exponential smoothing technique
  3. Time series method
  4. Simple linear regression

Answer(s): B

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

Exponential smoothing gives progressively less weight to older data but uses the entire historical dataset to forecast future demand. Moving averages, by contrast, use a fixed number of recent periods.


Reference:

CIPS L5M10 Study Guide, Demand forecasting methods, p. 157



Bilal has implemented a new production system using 5S and Value Stream Mapping.
Which continuous improvement approach has he applied?

  1. Theory of Constraints
  2. Lean
  3. Six Sigma
  4. Total Quality Management

Answer(s): B

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

5S (Sort, Set, Shine, Standardise, Sustain) and Value Stream Mapping are signature Lean tools focused on waste elimination and process flow efficiency. Six Sigma focuses on variability reduction; TQM is a broader philosophy.


Reference:

CIPS L5M10 Study Guide, Lean manufacturing tools and comparisons, p. 138



Helmets Ltd produces hard hats.
Which of the following sentences relates to the company's capacity?

  1. Helmets Ltd employs 76 people
  2. Helmets Ltd turnover last year was £340,000
  3. Helmets Ltd produces 120 helmets per day
  4. Helmets Ltd requires machines to run 8 hours per day

Answer(s): C

Explanation:

Comprehensive and Detailed Explanation From Exact Extract:

Capacity describes the rate of output that can be produced under normal operating conditions (e.g., "120 helmets per day"). Headcount or machine hours are capacity inputs, not capacity measures.


Reference:

CIPS L5M10 Study Guide, Understanding capacity and throughput, pp. 134­135



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