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CIPS Supply Network Design Sample Questions (Q15-Q20):

NEW QUESTION # 15
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.

A. Customer demand is low
B. Changes in competitor activity
C. Raw materials are vulnerable
D. There is a short lead time for the product

Answer: B,C

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 # 16
Mabel, theOperations Directorat a hotel, is engaged in a debate abouttrade-offs. The CFO believes that efficiency and effectiveness cannot be achieved together. Is this correct?

A. Yes - engaging in trade-offs means that continuous improvement methodologies are no longer required
B. Yes - the hotel must make a trade-off between efficiency or effectiveness, it cannot have both
C. No - with improvements to technology and communications, there is no need for trade-offs
D. No - the concept of trade-offs means that the organisation can position itself to achieve both effectiveness and efficiency

Answer: D

Explanation:
* Trade-offs involve balancing objectives(cost, quality, speed) toenhance both efficiency and effectiveness.
* Technology helps (D), but trade-offs still existin areas likesustainability and ethical sourcing.
* Continuous improvement (B) remains crucialeven with trade-offs.
(LO 2.2, See p.128-129)

NEW QUESTION # 17
The operations department of ABC Ltd has recently launched a new product. The product is manufactured within a large factory and then sent to retailers for sale. The department has a system in place which details the components required for the product and the quantities required to fulfil customer demand. The system works online and links to other areas of the business including HR and finance.
So far, several large orders have been placed for the product from different retailers. The Chief Operations Officer (COO) has decided to programme the completion of the orders based on when the orders were placed.
The benefit of this strategy is that it will give each customer a similar lead time. Thus far no buffer stock has been created as products are only created when orders are received.
Three teams are required to make the product and the product flows from team one to team two to team three, each team adding a component to the product. Unfortunately, team two are short staffed and are completing their work at a slower rate than the other two teams. This is a huge consideration for the COO as it will impact upon the capacity of the organisation.
The retailers have all signed contracts with ABC Ltd and the COO is extremely happy that they are long term contracts. Contract 1 is with retailer X and the price is set for three years. Contract 2 is with retailer Y and is a five year contract where the price will be reviewed annually in line with CPI. Contract 3 has a variable pricing mechanism based on the volume of products ordered.
What capacity strategy is being used?

A. Capacity-lag
B. Demand-led
C. Demand-lag
D. Capacity-led

Answer: B

Explanation:
The company follows ademand-ledstrategy since production capacity is adjustedbased on actual customer orders. No stock is produced without confirmed demand. (See LO 2.2)

NEW QUESTION # 18
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?

A. To avoid the inefficiency trap
B. To please shareholders
C. To decrease fixed costs
D. To gain better access to emerging markets

Answer: C

Explanation:
* Outsourcing replaces fixed costs with variable costs-companies onlypay for what they use, rather than maintaining their own fleet.
* Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.
* Option C is incorrectas there is no mention of shareholders in the scenario.
* Option D is incorrectsince the inefficiency trap relates tooffshoring.
(LO 1.2, See p.44)

NEW QUESTION # 19
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?

A. Yes - corporate strategy dictates operational strategy and thus resource allocation
B. No - corporate strategies will not assist in resource planning
C. Yes - resources can only be assembled once objectives have been set
D. No - strategies can be created to fit an organisation's resource capabilities

Answer: D

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 # 20
......

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How Dumps4PDF will Help You in Passing the L6M9 Exam?

Updated CIPS Certification L6M9 Exam Infor With Interarctive Test Engine & Trustable Valid Test L6M9 Fee

CIPS Supply Network Design Sample Questions (Q15-Q20):

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