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Warehouse A has a Design Capacity that allows for 20 lorries to be unloaded per day. Which of the following is likely to be the Effective Capacity of the warehouse?
Answer : C
Comprehensive and Detailed Explanation From Exact Extract:
Effective capacity is always lower than design capacity due to real-world losses (delays, staff absence, variability in unloading times). Design capacity reflects an ideal ''perfect day.'' (CIPS L5M10 Study Guide, p. 108)
The Supply Chain Module of an ERP (Enterprise Resource Planning) system would typically include which of the following elements? Select THREE.
Answer : C, D, E
Comprehensive and Detailed Explanation From Exact Extract:
The Supply Chain module within ERP systems manages transport, demand planning, and warehouse operations. Other ERP modules handle finance and CRM separately.
(Reference: CIPS L5M10 Study Guide, ERP systems and supply chain integration, p. 73)
Omar is forecasting future demand. Normally he uses three years of sales data, but this year he's been asked to include data back to 2004. Which forecasting technique is he using?
Answer : B
Comprehensive and Detailed Explanation From Exact Extract:
Exponential smoothing gives progressively less weight to older data but uses the entire historical dataset to forecast future demand. Moving averages, by contrast, use a fixed number of recent periods. (Reference: CIPS L5M10 Study Guide, Demand forecasting methods, p. 157)
Which of the following statements about Sales and Operations Planning (S&OP) are TRUE? Select TWO
Answer : A, C
Comprehensive and Detailed Explanation From Exact Extract:
S&OP aligns aggregate demand and supply by planning future resource levels, typically on a rolling monthly cycle. It is explicitly cross-functional, involving operations/logistics, marketing/sales, finance, and HR to reconcile a single plan. While finance input is important, S&OP is not merely a financial plan, and external factors---including competitor actions---are considered in demand assumptions. (Reference: CIPS L5M10 Study Guide, S&OP overview, p. 112)
PLM manages large distribution centres. Goods are not stored when delivered but are prepared immediately for shipment to retail outlets. What type of system is this?
Answer : D
Comprehensive and Detailed Explanation From Exact Extract:
Cross docking (XDK) involves transferring inbound goods directly to outbound transport without long-term storage, reducing handling, time, and warehousing costs. It requires tight coordination between transport and order schedules.
(Reference: CIPS L5M10 Study Guide, Cross docking and distribution centre operations, p. 24)
