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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. 08, 2026 (see below)
Which of the following is the correct statement about total ordering cost?
Typically, ordering costs include expenses for a purchase order, labor costs for the inspection of goods received, labor costs for placing the goods received in stock, labor costs for issuing a supplier's invoice and labor costs for issuing a supplier payment. These costs are irrelevant from the size of the order and are incurred every time a firm places an order.
The total ordering cost will be equal to ordering cost per order multiply with number of orders.
LO 2, AC 2.2
Warehouse automation involves the use of technology to perform as many warehousing tasks as possible. There are several benefits that can be gained by using automation in a warehouse. They are...
Do all types of warehouses require access to daylight to reduce the cost of electricity?
The design of a building should consider the advantages of natural light as this can reduce the cost of artificial lighting and improve the environmental performance of the building. Daylight entering the building can also help reduce heating costs. Unfortunately some stocks react badly to direct sunlight, and some stock reacts badly to extreme of temperature or may require a specific temperature for storage. Some stock may require a warmer temperature than the ambient temperature and other stocks may require cooler temperature. For example, fabric and garment are sensitive to direct sunlight as ultraviolet light catalyses a reaction between the water present in all fabrics and atmospheric oxygen to create hydrogen peroxide. This is a bleaching agent and breaks down the chemical bonds that give dyes their colour.
LO 1, AC 1.1
Bulk loose coal that requires massive handling system should be stored in which area?
Materials that will not easily deteriorate, are generally stored in open or fairly covered areas (stockyard). The materials are usually in bulk, like steel plates or coils casting, timber coal, steel barrels, cable drums, piping, lampposts, lorries, etc.
Stockyards are open or semi-covered areas that are used for the following:
- Bulk loose or packaged materials
- Bulky or oversized items that may be difficult to move inside
- Materials that may require specialised handling, loading or unloading
Below image shows the example of a stockyard that stores loose coal and its handling system.
LO 1, AC 1.1
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