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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q20-Q25):
NEW QUESTION # 20
Which of the following arenotcharacteristics of good information?
- A. Interpreted
- B. Analysed
- C. Accurate
- D. Relevant
- E. Timely
Answer: A,B
Explanation:
Analysed and interpreted arenotcharacteristics of good information. The key characteristics of good information are accuracy, reliability, timeliness, relevance, and completeness. (See p.178)
NEW QUESTION # 21
Maxi Ltd is a medium-sized manufacturing organisation in the automotive industry that creates engines for cars. It has traditionally worked well with its suppliers, with strong relationships and regular meetings. There are currently around 15 suppliers who provide parts to Maxi Ltd.
Due to changing customer demands, Maxi Ltd will, from next month, modify the manufacturing of some of its products. Product X is being made more environmentally friendly, with output of CO2 being reduced by 32%. The product will take longer to produce, but there will be no additional cost to customers for this.
Maxi ltd are considering outsourcing the manufacturing of Product Y as it is not a product which is routinely ordered by customers. This will allow Maxi Ltd to focus on other products which generate higher revenues for the company. The concern within the Board of Directors is that if demand increases for this product, an outsourced company may not be able to cope with higher numbers of orders.
Product Z is an extremely popular item and oftentimes Maxi Ltd does not have the capacity to fulfil all orders. Consideration has been given to increasing the size of the factory, but this has been discarded as risky as demand is not guaranteed. The product has been available on the marketplace for a short amount of time and sales are continuing to increase, but the company believes this will soon plateau. To deal with current demand, the marketing team is working on campaigns to invite customers to make orders for this product at certain times of the year when product X is not being created in the factory.
This means resources can be reallocated to the creation of product Z.
Whatcapacity strategyis being used for product Z?
- A. Demand smoothing
- B. Lag
- C. Lead
- D. Incremental
Answer: A
Explanation:
The marketing team isencouraging customersto make orders at specific times of the year, whenproduct X is not being produced, tobetter allocate resources. This is a classic example ofdemand smoothing, where businesses adjust demand patterns to match available capacity. (LO 1.3)
NEW QUESTION # 22
Which of the following are Porter's strategies that can help an organisation create competitive advantage in the marketplace?Select ALL that apply
- A. Provide exceptional customer service
- B. Ensure a large product range
- C. Become an organisation that is meaningfully different from competitors
- D. Be a low-cost provider
- E. Become a specialised provider
Answer: C,D,E
Explanation:
Porter's three strategies are low-cost, differentiation, and niche. These options are just worded slightly differently but align with Porter's competitive strategies. (See p.151)
NEW QUESTION # 23
Scenario:
Blue Bear Ltd is amultifunctional manufacturing organisationwith aglobal supply chainand customers in over30 different countries. Each function within the company hasdifferent supply networksand relationships.
For eachfunction, select the correctValue Chain ActivityandSupply Network Typefrom the given options.
Answer:
Explanation:
Explanation:
Function 1:This function is asupport activityresponsible for ensuring other functions have the right resources to complete work. It has acomplex structurewithhorizontal and verticalreporting lines, and each employee has clear objectives.#Correct answer:HR|Bureaucratic Function 2:This function ensures that theFive Rightsare achieved. It makeskey strategic decisionsthat other departments follow.Power is centralised, and staff support other business areas as needed.#Correct Answer:
Procurement|Centralised
Function 3:Staff describe themselves as the"people that get stuff done". This is aPrimary Activityin the Value Chain, responsible for turning raw materials intofinished products. The function has ahighly valued supply network, bothupstream and downstream, withjoint decision-making.#Correct answer:Operations| Symmetrical Function 4:Although aPrimary Activity, this function isnot well-organised. It relies ontrust-based relationshipsrather than formal contracts. Information is shared informally. It is responsible forwarehousing and transportation.#Correct Answer:Outbound Logistics|Social Function 5:This function has aone-sided supply network. It is aPrimary Activityanddeals directly with customers.#Correct Answer:Marketing and Sales|Asymmetrical A screenshot of a white sheet AI-generated content may be incorrect.
NEW QUESTION # 24
Which of the following examples of a supplier would be suitable forStrategic Supplier BusinessReviews?
Select ALL that apply.
- A. Sole sourcing
- B. A partnership arrangement
- C. A top-tier supplier in a tiered supply chain
- D. Supplier of direct components
- E. Short-term bottleneck supplier
Answer: A,B,C
Explanation:
Strategic Supplier Business Reviewsare used for long-term and important suppliers. The study guide states that this type of review is more commonly seen where an organisation has significantsole sourcing, tiering, or partnership relationships, particularly those spanning a long time scale. Sharing future plans and incorporating developments in each organisation is important for maintaining strategic integrity.
* Option D (short-term bottleneck supplier)is incorrect because strategic reviews are for long-term supplier relationships.
* Option E (supplier of direct components)is incorrect because it does not specify that the supplier is of strategic importance. (See p.190)
NEW QUESTION # 25
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