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CIPS L4M7 Exam Questions
- Topic 1: Explain the use of product coding in inventory operations/ Order tracking technologies
- Topic 2: Systems for product coding/ Bar coding/ The use of RFID technologies
- Topic 3: Environmental standards for packaging/ Materials handling equipment
- Topic 4: The use of automation in warehousing/ Palletisation and unit loads
- Topic 5: Opening stock, work in progress, safety stock and finished goods/ Obsolescent and redundant stock Dependent demand and independent demand itemsof stock/ ABC classifications of stock that may apply
- Topic 6: Understand the key elements of effective inventory control/ Factors that influence stores and warehouse layout
- Topic 7: Contrast the impact of the use of different warehousing equipment/ Understand methods for the storage and movement of inventory
- Topic 8: Discuss options to reduce costs whilst mitigating any negative impact on service levels/ Location of stores and warehouses
- Topic 9: Identify the principles, purpose and impact of stores and warehouse design/ Identify the direct and indirect costs of holding inventory
- Topic 10: Hidden costs – global sourcing, risks associated with extended supply chain/ Cross functional support – ensure access to data
- Topic 11: Ensure senior management support/ Use best estimates of values available/ Identify the contributing elements to end-of-life costs
- Topic 12: Differentiate between the different classifications of inventory/ Identify techniques associated with inventory control
Free CIPS L4M7 Exam Actual Questions
Note: Premium Questions for L4M7 were last updated On Aug. 29, 2025 (see below)
The managing director requires action to be taken to improve the organization's profitability and has asked for suggestions to enable this to be achieved. The procurement manager has said that a just-in-time (JIT) system should be introduced. Would such a system improve profitability?
Just-in-Time (JIT) inventory management minimizes stock levels by synchronizing orders with production schedules, which:
Reduces holding costs: Less inventory means lower costs for storage and management.
Increases cash flow: Reduced stock levels free up working capital.
Whole-life asset management supports JIT as a cost-saving measure, focusing on maintaining lean inventories while meeting production needs.
Hi-Tech Products Inc. (HTP) has just opened a new state-of-the-art distribution centre. It has invested heavily in new technology that will help manage, store, and identify stock items and their locations quickly and continuously. Its investment uses wireless technology. HTP will be using which of the following?
Which of the following are most likely to be direct benefits of applying RFID technology? Select TWO that apply
RFID tags are the small devices that can be embedded in labels or attached to tags which work with radio transmitters and/or receivers to identify themselves.
RFID tags can be used to do the following:
- Track individual items
- Track boxes of products, cages of products and pallets
- Track containers with multiple loads
- Locate equipment within a building
- Trigger alarms should equipment or stock be removed without authorisation.
RFID devices have a very small integrated circuit incorporating a small memory capability - many are smaller than 2mm square and 2mm thick. Despite its size, many can hold 2000 characters of data.
RFID operating rage depends on the radio frequency used, receiver capability and the environment. Some tags are only readable from under 1m, others can have a 100m range.
RFID tags and labels are very specific to the type of material and size of your assets. For example, metal will deactivate the RFID antenna and the tag will not transmit at all. Using RFID on metal requires a special type of tag with an RFID block to prevent interference with the antenna. Liquid products can also affect the reliability of the RFID signal. To use RFID tags in specific environ-ments, some technologies are needed to support them.
LO 1, AC 1.2
A central distribution warehouse receives deliveries from several suppliers of bread and cakes on pallets in large quantities. These deliveries need to be separated into smaller individual consignments for delivery to retail stores operated by the bakery company. The division of the large quantities into smaller consignments is called:
Breaking bulk is the process of dividing large shipments of goods into smaller lots for easier distribution. This is a standard practice in warehousing and logistics to facilitate delivery to various locations or end users. Unlike cross-docking, which involves minimal storage time, breaking bulk focuses on redistributing large shipments into smaller, manageable batches. In whole-life asset management, breaking bulk helps maintain streamlined operations and reduces holding costs by ensuring goods are moved efficiently and without prolonged storage.
Which of the following correctly describes the triple bottom line?
The triple bottom line is a sustainability framework that examines a company's social, environment, and economic impact (or People, Planet, Profit).
- 25 Years Ago I Coined the Phrase ''Triple Bottom Line.'' Here's Why It's Time to Rethink It.
- CIPS study guide page 202
LO 3, AC 3.3
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