Free Practice CIPS L2M5 Exam Questions 2025

Stay ahead with 100% Free CORE Level 2 Inventory, Logistics and Expediting L2M5 Dumps Practice Questions

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Total 126 Questions | Updated On: Apr 21, 2025

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Question 1

The buyer does not need to look at global sources to fully understand their own country’s domestic importation regulations.

A : TRUE

B : FALSE

Answer: B

Question 2

Which of the following are examples of indirect costs? More than one applies

A : Lease hire of the company vehicle

B : Packaging

C : Rent of the office

D : Wages of salaried staff

Answer: A,C,D

Question 3

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 4

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

Question 5

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

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Total 126 Questions | Updated On: Apr 21, 2025

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