CIPS L5M10 Exam - Topic 10 Question 1 Discussion

Actual exam question for CIPS's L5M10 exam

Question #: 1
Topic #: 10

Baby Ltd manufactures 100 prams each quarter. In Q1, it sold 78 prams. A customer phones in March to order 3 prams for the following month. Is there Availability to Promise (ATP)?

AYes -- 22 prams were unsold last quarter

BYes -- 100 prams will be manufactured in Q2 so the customer can order one of these

CMaybe -- it depends on the number of customer orders already received for Q2

DMaybe -- the customer must wait until Q2 to be sure

Show Suggested Answer

Suggested Answer: C

Comprehensive and Detailed Explanation From Exact Extract:

Availability to Promise (ATP) is the portion of inventory or planned production that is not yet committed to existing customer orders. It depends on confirmed orders and forecasted production. Without knowing Q2's confirmed demand, ATP cannot be guaranteed.

(Reference: CIPS L5M10 Study Guide, ATP definition and application, p. 182)

by Jenise at Nov 19, 2025, 10:25 PM

Limited Time Offer

25%

Off

Get Premium L5M10 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ryan

15 hours ago

I'll take one pram, two prams, three prams, four! How many prams can I get?

upvoted 0 times

...

Mattie

6 days ago

Prams? I thought we were talking about llamas. Where's the llama option?

upvoted 0 times

...

Mariko

11 days ago

B) 100 prams in Q2? That's a lot of baby-carrying capacity! The customer's order should be no problem.

upvoted 0 times

...

Marti

16 days ago

D) Better safe than sorry. Waiting until Q2 is the way to go.

upvoted 0 times

...

Tammara

21 days ago

C) Hmm, gotta consider those other customer orders for Q2. Can't promise anything until we know the full picture.

upvoted 0 times

...

Veronica

26 days ago

I lean towards B because they will manufacture 100 prams in Q2, so there should be enough for the order, right?

upvoted 0 times

...

Maurine

1 month ago

I'm not entirely sure, but I feel like D could be correct since the customer has to wait until Q2 to see if they can actually get the prams.

upvoted 0 times

...

Leatha

1 month ago

I remember a similar question where we had to consider unsold inventory, so maybe A is also a possibility since there were 22 prams left.

upvoted 0 times

...

Nieves

1 month ago

I think the answer might be C because we need to know how many orders are already in for Q2 before confirming availability.

upvoted 0 times

...

Fletcher

2 months ago

Okay, I've got it. The answer is C. We don't have enough information to definitively say if there's ATP or not, since we don't know how many orders have already been placed for Q2. The customer will have to wait until Q2 to find out for sure.

upvoted 0 times

...

Alishia

2 months ago

I think the key here is that the customer is ordering 3 prams for the following month, not the whole quarter. So we need to look at the monthly production and sales, not just the quarterly numbers. The answer is probably C or D, depending on how many orders have already been placed for that month.

upvoted 0 times

...

Orville

2 months ago

Okay, let me think this through. We know the company sold 78 prams in Q1 and has 100 prams per quarter. So that leaves 22 unsold prams, which would be the answer to A. But the question is asking about availability for the next month, not the whole quarter, so I'm not sure if that's the right approach.

upvoted 0 times

...

Michael

2 months ago

A) Seems like the obvious choice. 22 prams unsold last quarter, easy peasy.

upvoted 0 times

...

Rory

2 months ago

A) Yes -- 22 prams were unsold last quarter

upvoted 0 times

...

Ronald

3 months ago

Hmm, I'm a bit confused. I was thinking the answer might be B since the company manufactures 100 prams per quarter, so the customer could just order one of those. But I'm not totally sure.

upvoted 0 times

...

Herman

3 months ago

I'm pretty sure the answer is C. We need to know how many customer orders have already been received for Q2 to determine if there's enough availability.

upvoted 0 times

Dalene

2 months ago

I think C makes sense. We need to check the orders first.

upvoted 0 times

...

Larue

3 months ago

Agreed, C is the best choice. Can't assume there's enough.

upvoted 0 times

...

Ashton

3 months ago

But what if they have a lot of orders already?

upvoted 0 times

...