Real L5M7 Questions - Remove Your Exam Fear

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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q25-Q30):

NEW QUESTION # 25
Sandy has been asked to collectprimary dataon manufacturing defects and their effect on profits. She decides to send aquestionnaireto staff. Is this correct?

Answer: D

Explanation:
Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy's approach aligns with primary data collection methods.
Short cited extract: "Primary data: original research such as questionnaires and interviews." (L5M7 Study Guide, p.141) Reference:CIPS L5M7 Study Guide, p.141.


NEW QUESTION # 26
Which of the following departments within an organisation form part of theValue Chain?
Select THREE.

Answer: B,D,E

Explanation:
According toMichael Porter's Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.
Short cited term: "primary activities - logistics, operations, marketing and sales" (L5M7 Study Guide, p. 76).
Reference:CIPS L5M7 Study Guide, p. 76.


NEW QUESTION # 27
Farmer Joe sells wheat and barley. He charges more when demand is high and less when demand falls. What pricing strategy does he follow?

Answer: A

Explanation:
Dynamic Pricingadjusts prices in real time to reflectmarket demand and supply conditions, commonly used in commodities.
Short cited term: "dynamic pricing - prices adjust to demand fluctuation." (L5M7 Study Guide, p. 189) Reference:CIPS L5M7 Study Guide, p. 189.


NEW QUESTION # 28
The effective balancing ofdemand variabilityandinventorythat achieves the optimal time a product passes through the supply chain is known as:

Answer: A

Explanation:
TheTheory of Swift Even Flowstates that organisational efficiency improves as the flow of materials, information, and cash becomessmooth and consistentthrough the chain.
Short cited term: "balancing demand and inventory to achieve swift, even flow." (L5M7 Study Guide, p. 37) Reference:CIPS L5M7 Study Guide, p. 37.


NEW QUESTION # 29
Guppy Fish Ltd manufactures machinery. A rival is releasing automated technology that could replace manual operation. What type of threat does this pose?

Answer: D

Explanation:
According toPorter's Five Forces, new automated competitors represent athreat of new entrants, introducing innovation and market pressure.
Short cited extract: "New entrants increase competition and threaten existing players." (L5M7 Study Guide, p.
56)
Reference:CIPS L5M7 Study Guide, p.56.


NEW QUESTION # 30
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