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CIPS L5M7 Exam - Topic 1 Question 15 Discussion

Actual exam question for CIPS's L5M7 exam

Question #: 15
Topic #: 1

[All L5M7 Questions]

Which of the following is an example of a closed-loop supply chain?

AA farm supplying milk to a dairy manufacturer

BThe extraction of diamonds from a mine sold to a jewellery manufacturer

CThe sale of second-hand cars at a retail outlet

DA retailer which accepts old phones to be given back to the manufacturer

Show Suggested Answer

Suggested Answer: D

A closed-loop supply chain returns used products to the chain for reuse/recycling/remanufacture. Short extract: ''closed loop -- products/materials re-enter the supply chain.'' (L5M7 Study Guide, pp.5--7)

by Billy at May 31, 2026, 04:10 PM

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Tracey

11 hours ago

I practiced a similar question where the focus was on returns and recycling. D definitely sounds like the best example here!

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Julie

6 days ago

I’m not entirely sure, but I thought closed-loop meant something about the entire lifecycle of a product. Could it be A or D?

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Karl

11 days ago

I remember discussing closed-loop systems in class, and I feel like it’s about recycling or reusing materials. D seems to fit that.

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Loise

16 days ago

I think a closed-loop supply chain involves returning products to the manufacturer, so maybe D is the right choice?

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