CIPS L4M1 Study Guide Questions with
Verified Correct Answers
Tangible
An item or product which you are able to touch, feel and, importantly, measure
Intangible
Something you cannot physically see or touch
Strategic
High level planning, including setting direction and long-term goals
Inventory
Components, raw materials, work in progress, finished goods and suppliers required for the
creation of goods and services for the customer. It can also refer to the number of units and/or
value of the stock of goods held by a company
Expediting
The process involved in the progress of an order to ensure stock is received as quickly as
possible
Primary sector
Industry sector that extracts raw materials
Secondary sector
Industry sector that manufactures things
Tertiary sector
Industry sector that provides services
, Supply chain
A channel of goods distribution, which starts with the supplier of raw materials or
components, moves through a operational process to the distributor and retailer, and finally to
the consumer
Upstream (supply chain)
The supply flow of raw materials, components, parts, etc., needed for production
Downstream (supply chain)
The supply chain that the organisation feeds into, from product to end user
Ethics
Principles that govern a person's or organisation's behaviour
Supply Chain Network (SCN)
An evolution of the basic supply chain, which defines the more complex structure, involving
a higher level of interdependence and connectivity allowing a two-way exchange of
information and materials to successfully meet customer demands between more
organisations both upstream and downstream
Tiering
The structured ordering and organisation of suppliers so that organisations downstream work
with fewer suppliers upstream
Original Equipment Manufacturer (OEM)
Generally perceived as the producer of own-branded parts or equipment which are sold to
other manufacturers for production and retail
Verified Correct Answers
Tangible
An item or product which you are able to touch, feel and, importantly, measure
Intangible
Something you cannot physically see or touch
Strategic
High level planning, including setting direction and long-term goals
Inventory
Components, raw materials, work in progress, finished goods and suppliers required for the
creation of goods and services for the customer. It can also refer to the number of units and/or
value of the stock of goods held by a company
Expediting
The process involved in the progress of an order to ensure stock is received as quickly as
possible
Primary sector
Industry sector that extracts raw materials
Secondary sector
Industry sector that manufactures things
Tertiary sector
Industry sector that provides services
, Supply chain
A channel of goods distribution, which starts with the supplier of raw materials or
components, moves through a operational process to the distributor and retailer, and finally to
the consumer
Upstream (supply chain)
The supply flow of raw materials, components, parts, etc., needed for production
Downstream (supply chain)
The supply chain that the organisation feeds into, from product to end user
Ethics
Principles that govern a person's or organisation's behaviour
Supply Chain Network (SCN)
An evolution of the basic supply chain, which defines the more complex structure, involving
a higher level of interdependence and connectivity allowing a two-way exchange of
information and materials to successfully meet customer demands between more
organisations both upstream and downstream
Tiering
The structured ordering and organisation of suppliers so that organisations downstream work
with fewer suppliers upstream
Original Equipment Manufacturer (OEM)
Generally perceived as the producer of own-branded parts or equipment which are sold to
other manufacturers for production and retail
