L6M9 New Study Notes - Exam L6M9 Exercise
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Free PDF Quiz 2025 CIPS Perfect L6M9: Supply Network Design New Study Notes
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CIPS Supply Network Design Sample Questions (Q61-Q66):
NEW QUESTION # 61
Rayan is the new CFO of an international banking organisation operating in London. He has been invited to a meeting of the top executives regarding corporate strategies and strategic resource planning. He believes that the organisation must be led by the strategy first, with resources then created to meet the requirement. Is this always the case?
Answer: A
Explanation:
The question asks if strategy mustalwayscome first. The correct answer isnobecause strategies can also be developed based on available resources. Corporate strategy often influences resource planning, but sometimes an organisation will assess its resources and build a strategy accordingly. (See p. 150)
NEW QUESTION # 62
Which of the following aretypical objectives of Linear Programming (LP)?Select ALL that apply.
Answer: A,C,D,E
Explanation:
* Linear Programming (LP) aims to optimise resource allocationby:
* Minimising inventory levels(reduce storage costs).
* Maximising machine working hours(increase efficiency).
* Minimising production costs(reduce expenses).
* Maximising labour working hours(increase productivity).
* Option C is incorrect-LPaims to minimise, not maximise, transportation costs.
(LO 1.3, See p.47)
NEW QUESTION # 63
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
Answer: A,D
Explanation:
Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)
NEW QUESTION # 64
Of the following, which areexamples of disintermediation?Select ALL that apply.
Answer: B,C
Explanation:
* Disintermediationrefers toremoving intermediariesfrom a supply chain, meaning companies deal directly with consumers or suppliers.
* Option B (selling without an estate agent)removes thereal estate broker.
* Option C (farm selling directly to the public)removes theretailer/middleman.
* Option A is incorrectbecausebuying a forestisbackward vertical integration.
* Option D is incorrectbecause relocating a call centre isoffshoring.
* Option E is incorrectbecause hiring an external company for services isoutsourcing, not disintermediation.
(LO 1.2, See p.23)
NEW QUESTION # 65
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?
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 # 66
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