CIPS L2M5 Practice Test : Free Online Preparation

Question 1
- An unfortunate side effect of using automated packing, wrapping and labelling machines is the corresponding increase in non-biodegradable waste.
  
  A : TRUE
  
  B : FALSE
  
  Answer: A
Question 2
- Which of the following is true for Just in time – JIT. Select all that apply?
  
  A : Aims to bring inventory levels down to minimal levels or, in its purest form, have no inventory.
  
  B : Any disruption in a Just-in-time system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.
  
  C :
  Buyers should adopt JIT with ALL suppliers
  
  D : Can be used as an inventory control system to mitigate over-supply.
  
  E :
  Just in time, or JIT, is an operations management or inventory control system that aims to reduce wasted resources by minimising inventory. It coordinates demand and supply by purchasing, transporting and processing materials ‘just in time’ for when they are needed in the manufacturing process.
  JIT should NOT be adopted with all suppliers as this is not practical. It should be adopted when appropriate because any disruption in a JIT system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.
  
  Answer: A,B,D
Question 3
- Who devised the INCOTERMS?
  A : International Chamber of Civil Engineers
  
  B : International Chamber of Commerce
  
  C : International Cubical of Civil Engineers
  
  D : International Cubical of Commerce
  
  Answer: B
Question 4
- Which mode of transport is more environmentally friendly than other methods, and can be used for large or heavy items?
  A : Air
  
  B : Pipeline
  
  C : Rail
  
  D : Road
  
  E : Sea
  
  Answer: C
Question 5
- The MRP refers to minimum order quantity, batch quantities and buffer stock to arrive at an order and creates BOM for each product ordered. What does BOM stand for?
  
  A :
  Bill of manufacturing
  
  B : Bill of materials
  
  C : Bill of measurements
  
  D :
  Bill of motion
  
  Answer: B

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