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CIPS L5M10 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand Capacity Planning and Control in Logistics Management: This section of the exam measures the skills of Operations Planners and focuses on the techniques and systems used to manage capacity, demand, and resource planning across logistics activities. It explains how organizations balance planning with real-time control, adjust to fluctuating demand, and schedule workloads effectively. Candidates are expected to understand capacity concepts, constraints, demand forecasting, capacity measurement, and different planning approaches such as level planning, chase demand strategies, and demand management methods. The section also examines the use of technology in capacity planning, particularly Materials Requirements Planning (MRP), MRP II, ERP systems, master production scheduling, inventory data, and bills of materials, while recognizing the limitations of these tools. Finally, it covers the role of reverse logistics, emphasizing the handling of customer returns, the development of return policies, and how returned items are reintegrated into the supply chain.
Topic 2
  • Analyse the Role and Activities of Logistics Management: This section of the exam measures the skills of Logistics Managers and covers the essential concepts, functions, and strategic importance of logistics within modern supply chains. It explains what logistics is, how its key elements work together—such as transportation, warehousing, inventory, packaging, information flow, and security—and how these components support procurement, production, distribution, after-sales processes, and product disposal. The section explores how logistics integrates with broader supply chain management and introduces the idea of total logistics and total cost thinking, showing how multimodal transport and pipeline inventory contribute to efficiency. Candidates must understand how logistics creates competitive advantage by aligning operations with business strategy, managing customer service levels, measuring service quality, and recognizing its financial impact. This heading also evaluates the increasing role of technology in logistics, including barcoding, RFID, e-fulfilment systems, warehouse management systems, automated data capture, and the integration of digital tools across the logistics network.

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CIPS Logistics Management Sample Questions (Q41-Q46):

NEW QUESTION # 41
Which of the following are types of Auto-Identification and Data Capture (AIDC) technology used in logistics? Select THREE

Answer: A,C,E

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
AIDC encompasses technologies that automatically identify items and capture data with minimal human intervention. Examples include barcodes/QR, RFID, biometrics, magnetic stripes, and voice recognition.
Smartphones are devices that may host AIDC apps but are not a technology class themselves; EDI is a system- to-system messaging standard, not AIDC. (Reference: CIPS L5M10 Study Guide, AIDC overview and examples, p. 83)


NEW QUESTION # 42
Which of the following items can be classed as inventory? Select THREE

Answer: A,B,C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Inventory in logistics and supply chain management refers to goods held for sale or for use in producing goods for sale, at any stage of completion. This includes raw materials/components, work-in-progress (WIP), and finished goods. Physical assets such as warehouses or vehicles are not inventory; they are resources
/capacity assets. (Reference: CIPS L5M10 Study Guide, Section on "The role of logistics and inventory," p. 3)


NEW QUESTION # 43
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?

Answer: B

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)


NEW QUESTION # 44
Various business functions complete different controlling activities. Which control activity would be completed by the Distribution function?

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Distribution control focuses on transport execution and delivery performance-monitoring, expediting, and controlling outbound deliveries. Purchasing contract analysis belongs tosupply/procurement control; quality control to production/quality; and warehouse budgets to warehousing control. (Reference: CIPS L5M10 Study Guide, "Controlling activities by function," p. 109)


NEW QUESTION # 45
When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs wouldnotbe included in the calculation?

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
TCO for inventory focuses on all direct and indirect costs incurred in holding stock - such as pilferage (theft), obsolescence (unsellable items), and insurance (risk protection for loss/damage). Staff uniforms, however, are general overheads unrelated to inventory holding cost. (Reference:CIPS L5M10 Study Guide,
"Costs of holding inventory," p. 27)


NEW QUESTION # 46
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