Valid L6M9 Practice Questions & L6M9 Certification Test Answers

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CIPS - L6M9 - Valid Supply Network Design Practice Questions

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CIPS L6M9 Exam Syllabus Topics:

Topic	Details
Topic 1	Assess the strategic value of resource planning and control: This part targets Resource Planners, focusing on evaluating strategic resource planning concepts such as forecasting, scheduling, monitoring, and controlling resources effectively within the operational framework.
Topic 2	Understand and apply leadership skills and behaviors appropriate for strategically improving the procurement and supply chain function: This section of the exam measures the skills of Supply Chain Managers and covers understanding leadership behaviors that enhance procurement processes. It assesses how to strategically improve supply chain functions, focusing on a key skill like "Strategic Decision Making".
Topic 3	Understand operations strategy and its contribution to overall business success: Targeting Operations Directors, this section evaluates understanding of operations strategy's impact on organizations, including aligning with business goals, market requirements, and resource management.

CIPS Supply Network Design Sample Questions (Q25-Q30):

NEW QUESTION # 25
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 system is used by ABC Ltd?

A. MRP
B. KPI
C. ERP
D. Lean

Answer: C

Explanation:
The system used isERP (Enterprise Resource Planning)since it links multiple business functions such as HR and finance.MRP and MRPIIare primarily used formanufacturing/operations, andKPIrefers to performance measurement rather than a system. (See LO 3.3)

NEW QUESTION # 26
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.
Whatarea of the product lifecycleis product Z in?

A. Decline
B. Introduction
C. Growth
D. Maturity

Answer: C

Explanation:
Product Z has been available fora short amount of time, andsales are still increasing. Since thedemand is growing but has not yet stabilized, it is in thegrowth stageof the product lifecycle. (LO 2.2)

NEW QUESTION # 27
What is the purpose ofsupplier development?

A. To reduce the number of suppliers upon which a business would become dependent
B. To add value to the supply chain
C. To lower prices, which will increase the profit margin
D. To ensure that there are no logistics or delivery issues within the supply chain

Answer: B

Explanation:
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
* Option A is incorrectbecause supplier development is not solely about cost reduction-it also focuses onquality and efficiency.
* Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want a widersupplier base.
* Option D is incorrectbecause no system caneliminatelogistics risks entirely-there will always be uncertainties.
(See LO 1.1, p.2)

NEW QUESTION # 28
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.

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

Answer: B,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 # 29
Which area ofoperations strategyis concerned withinformation management systems, automation, and productivity?

A. Supply network design
B. Process technology
C. Development and organisational design
D. Capacity

Answer: B

Explanation:
* Process technologyrefers toinformation management systems, automation, and productivity tools.
* Capacity (A)is related toresource planning.
* Supply network design (B)deals withsupplier relationships and logistics.
* Development and organisational design (D)is aboutpeople, structures, and hierarchies.
(LO 2.1, See p.71)

NEW QUESTION # 30
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Valid L6M9 Practice Questions & L6M9 Certification Test Answers

CIPS - L6M9 - Valid Supply Network Design Practice Questions

CIPS L6M9 Exam Syllabus Topics:

CIPS Supply Network Design Sample Questions (Q25-Q30):

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