CIPS Level 5 Advanced Diploma in Procurement and Supply Practice Questions — 10 Free (2026)

Taylor's methods delivered a 60 per cent increase in output. If a gang had been producing 1,250 tons a week, what was the new weekly figure?

• A. 1,750
• B. 1,950
• C. 2,000 ✓
• D. 2,250
• E. 3,125

The base figure stays and the increase is added to it. Reading 60 per cent as the new total rather than the uplift gives 750 and inverts the direction. CIPS Level 5 Advanced Diploma Core Study Guide, L5M1

What is a horizontal alliance in Porter and Fuller's classification?

• A. An alliance linking a company to a supplier above or below it in the chain
• B. An alliance between firms in completely different markets
• C. An alliance formalised by creating a new legal entity
• D. An alliance between firms in the same business area, often former competitors ✓
• E. An alliance in which each party takes an equity stake in the other to discourage outside takeovers

Research and development collaborations are said to be typical of it. Improving market position relative to others is what brings the former rivals together. CIPS Level 5 Advanced Diploma Core Study Guide, L5M15

A supplier made 480 deliveries in a year and the record shows 30 per cent of them arrived late. How many were late?

• A. 48
• B. 72
• C. 96
• D. 120
• E. 144 ✓

Historical data of this kind is what lets a buffer be sized rather than guessed. The guide pairs the buffer with a liquidated damages clause so the supplier has a reason to improve. CIPS Level 5 Advanced Diploma Core Study Guide, L5M2

A bureaucracy has one director, and every manager supervises six people. How many posts sit at the third level below the director?

• A. 18
• B. 216 ✓
• C. 222
• D. 1,296
• E. 1,555

Each level multiplies rather than adds, which is why a vertical chain of command grows so quickly. That growth is part of why Weber thought the design needed careful planning. CIPS Level 5 Advanced Diploma Core Study Guide, L5M1

What separates design capacity from effective capacity?

• A. Design capacity is measured in output and effective capacity in input
• B. Effective capacity is what remains once losses are taken into account ✓
• C. Design capacity is set by the equipment maker and effective capacity by the operator
• D. Effective capacity is always the higher of the two figures
• E. Design capacity applies to a whole plant while effective capacity applies to one machine

The guide's warehouse example falls from twenty inbound deliveries an hour to fifteen. Actual output is the further figure after both desirable and undesirable losses. CIPS Level 5 Advanced Diploma Core Study Guide, L5M10

What is a service credit in a large service contract?

• A. A discount for early payment of the supplier's invoices
• B. An allowance the supplier holds against future price rises
• C. A payment made to the supplier for exceeding a KPI
• D. The sum set aside by the buyer at the start of a contract to cover the cost of any early termination
• E. A credit the supplier gives when it underperforms against contract KPIs ✓

The guide observes that what is a credit to the buyer is a debit to the supplier. Many suppliers are said to price a portion of them in from the start. CIPS Level 5 Advanced Diploma Core Study Guide, L5M15

Which set of words does the LILAC model use for building a risk-aware culture?

• A. Leadership, integrity, learning, accountability and control
• B. Leadership, involvement and learning, with accountability and communication ✓
• C. Learning, involvement, leadership, assurance and culture
• D. Listening and involvement, with leadership, awareness and commitment throughout
• E. Leadership, investment, learning, audit and communication

The guide asks that risk run as a golden thread through strategy, policies, appraisals and training. Treated that way it becomes part of culture in the same manner as quality and sustainability. CIPS Level 5 Advanced Diploma Core Study Guide, L5M2

A buyer contracted for a vehicle at 50 a day for two days. The supplier could not provide one, and the buyer hired at short notice at 75 a day. What damages are due on the expectation measure?

• A. 25
• B. 50 ✓
• C. 100
• D. 150
• E. 250

The buyer is put where it would have been had the contract been performed: it bears the 50 a day it had budgeted, and the supplier meets the excess. CIPS Level 5 Advanced Diploma Core Study Guide, L5M3

Purchase price is 84,000, acquisition costs 7,500, usage costs 12,400 a year over four years, and end-of-life cost 5,600. What is the total cost of ownership?

• A. 109,500
• B. 134,900
• C. 146,700 ✓
• D. 152,300
• E. 158,400

Usage is annual and the life is four years, which is the step most often missed. The purchase price turns out to be a little over half the commitment. CIPS Level 5 Advanced Diploma Core Study Guide, L5M7

Which five factors does the SERVQUAL model measure against?

• A. Speed, accuracy, availability, courtesy and price
• B. Quality, cost, delivery, flexibility and innovation
• C. Product, place, price, promotion and people
• D. Reliability, tangibles, empathy, assurance and responsiveness ✓
• E. Satisfaction, engagement, loyalty, retention and advocacy across the customer base

The model examines variations between what the user anticipates and what they perceive. It sits alongside the net promoter score and CSAT in the guide's summary of service measures. CIPS Level 5 Advanced Diploma Core Study Guide, L5M10