CIPS L5M7 Exam - Topic 1 Question 10 Discussion

Actual exam question for CIPS's L5M7 exam

Question #: 10
Topic #: 1

[All L5M7 Questions]

Joe is a Supply Chain Manager at a car manufacturer in the UK. He plans rationalisation to streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.

ACustomisation

BSupplier innovation

CCollaborative inventory management

DTier-skipping

EReducing the number of suppliers

Show Suggested Answer

Suggested Answer: D, E

Rationalisation includes reducing supplier numbers and practices such as tier-skipping to simplify the network and reduce cost/complexity. Short extract: ''rationalisation---reduce supplier base; consider tier-skipping.'' (L5M7 Study Guide, p.11)

by Dominic at Mar 07, 2026, 03:47 PM

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