CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) L5M7 Exam Dumps: Updated Questions & Answers (December 2025)

Rationalisationincludesreducing supplier numbersand practices such astier-skippingto simplify the network and reduce cost/complexity. Short extract: “rationalisation—reduce supplier base; consider tier-skipping.” (L5M7 Study Guide, p.11)

Inventory valuation requires data onquantity in stockandunit purchase cost. These determine the total inventory value at any given time.

Short cited extract: “Inventory value = number of items × purchase cost.” (L5M7 Study Guide, p.147)

BPRexamines and redesignsworkflows and processesto remove waste and maximise efficiency and customer value.

Short cited extract: “BPR – radical review of workflows to achieve major efficiency improvements.” (L5M7 Study Guide, p. 111)

Offshoring typically seekscost reduction(e.g., labour arbitrage) while maintaining service/output levels; other motives are secondary. Short cited term: “cost reduction/advantages” (L5M7 Study Guide, domain 1.4 discussion).

Six Sigma is adata-driven methodologyaimed ateliminating defectsand reducing variation to improve quality and performance. Short cited terms: “data-driven,” “eliminate defects” (L5M7 Study Guide, p.110).

TheModeis the value thatappears most oftenin a dataset, distinguishing it from themean(average) andmedian(middle value).

Short cited term: “mode = most frequent value.” (L5M7 Study Guide, p. 149)

RIDDOR(Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) relates tohealth and safetyperformance measurement—tracking workplace incidents and compliance.

Short cited extract: “RIDDOR statistics relate to health and safety reporting.” (L5M7 Study Guide, p.141)

Dynamic Pricingadjusts prices in real time to reflectmarket demand and supply conditions, commonly used in commodities.

Short cited term: “dynamic pricing – prices adjust to demand fluctuation.” (L5M7 Study Guide, p. 189)

The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: “added value may be created through quality, innovation and time-to-market.” (L5M7 Study Guide, p.27)

Thefive Golden Metricsof supply chain performance are:safety,quality,delivery performance,total cost, andtotal cycle time. They represent universally accepted indicators of operational excellence.

Short cited extract: “Golden Metrics – safety, quality, delivery, total cost, total cycle time.” (L5M7 Study Guide, p.123)