L5M7 Practice Exam Questions with Answers Achieving Competitive Advantage Through the Supply Chain (L5M7) Certification

TheKraljic Matrixrecommendspartnership/alliancesfor strategic items to secure continuity, innovation, and joint value creation. Short cited term: “strategic items … partnership” (L5M7 Study Guide, p.84).

Theautomotive industryusessupplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.

Short cited extract: “Automotive sector commonly applies supplier-tier structures.” (L5M7 Study Guide, p. 115)

Effective quality measurement requiresSMART data—Specific,Measurable,Achievable,Relevant, andTime-bound—ensuring that data supports actionable improvement.

Short cited extract: “Data should be SMART to allow accurate performance analysis.” (L5M7 Study Guide, p.140)

Atightly coupledsupply chain exhibitshigh interdependencebetween members; decisions by one partner affect all others.

Short cited extract: “Tightly coupled = high interdependence between supply-chain partners.” (L5M7 Study Guide, p. 82)

Meeting expectations (B) is not exceeding them. Exceeding is demonstrated byunexpected extra valuesuch aslower-than-expected priceora free add-on. Short extract: “exceeding expectations—delighting customers with additional/unexpected value.” (L5M7 Study Guide, p.121)

The5S Methodology—Sort, Set in order, Shine, Standardise, Sustain—originates from Lean philosophy to promote efficiency and discipline in operations.

Short cited extract: “5S – a Lean technique for organisation and cleanliness in the workplace.” (L5M7 Study Guide, p.166)

AClosed Loop Supply Chainreintroduces used products into the supply process forreuse, recycling, or remanufacturing, closing the product’s lifecycle.

Short cited term: “closed loop – materials re-enter supply chain” (L5M7 Study Guide, pp. 5–6).

ARed Oceanmarket ishighly competitivewith many firms fighting for market share, leading to price wars and reduced margins.

Short cited term: “red ocean = intense competition and saturated market.” (L5M7 Study Guide, p. 179)

Value flowsdownstream, originating with suppliers and moving toward the end customer. A typical chain is tiered suppliers ? OEM/producer ? distributors/retailers ? customer. Short cited term: “value moves downstream” (L5M7 Study Guide, p.4).

ThePDCA Cycle—Plan, Do, Check, Act—provides a structured approach tocontinuous quality improvement. It begins with planning, implementing, monitoring, and then acting to refine the process.

Short cited extract: “The PDCA cycle – Plan, Do, Check, Act – underpins continuous improvement.” (L5M7 Study Guide, p.129)

Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy’s approach aligns with primary data collection methods.

Short cited extract: “Primary data: original research such as questionnaires and interviews.” (L5M7 Study Guide, p.141)

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)

JIT is aLeantechnique to minimise inventory and produce “only what is needed, when needed,” thereby removing waste from processes. Short cited phrase: “only when needed” (L5M7 Study Guide, p.111).

The hierarchy extendsbeyond Black Belt, includingMaster Black BeltsandChampions, who provide leadership and strategic direction.

Short cited term: “Master Black Belt and Champion above Black Belt.” (L5M7 Study Guide, p. 153)

According toMichael Porter’s Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.

Short cited term: “primary activities – logistics, operations, marketing and sales” (L5M7 Study Guide, p. 76).

TheResource-Based View(RBV) argues thatunique internal resources and capabilitiesare the key to sustainable competitive advantage.

Short cited extract: “Competitive advantage stems from internal resources and capabilities.” (L5M7 Study Guide, p.52)

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)

Technology enhancesbuyer access to data, broadening supplier choice and transparency, whichreduces supplier power.

Short cited term: “technology has reduced suppliers’ bargaining power” (L5M7 Study Guide, p. 66).

The study guide describes how demand variabilityamplifies upstreamin the chain—commonly termed the“bullwhip effect.”This is introduced when explaining basic supply-chain dynamics and flows. Short extract: “demand changes become amplified upstream (bullwhip effect).” (L5M7 Study Guide, p.4)

Therelationship spectrumshows thattransactional relationshipsare theleast trust-based, focusing on short-term exchanges with minimal collaboration.

Short cited extract: “Transactional – low trust, short-term, low collaboration.” (L5M7 Study Guide, p.80)

Defects discoveredbefore dispatchare classified asinternal failures, including rework, scrap, or re-inspection.

Short cited term: “internal failure = defects found before reaching customer.” (L5M7 Study Guide, p. 128)