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Trustable L6M9 Latest Exam Format & Leading Offer in Qualification Exams & Latest updated L6M9: Supply Network Design
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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q76-Q81):
NEW QUESTION # 76
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. ERP
- B. MRP
- C. KPI
- D. Lean
Answer: A
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 # 77
When designing a supply network, which of the following stages should be completedfirst?
- A. Track information flow
- B. Confirm the network scope
- C. Analyse potential risks
- D. Determine the approach for managing material flow
Answer: B
Explanation:
The correct sequence fordesigning a supply networkis:
* Determine strategic objectives
* Confirm the network scope
* Analyse potential risks
* Determine the approach for managing material and information flow
* Track material and information flow
Sincenetwork scopedefines theboundaries, scale, and overall structureof the network, it must be confirmed first. (LO 1.1, See p.3)
NEW QUESTION # 78
Which of the following arenotcharacteristics of good information?
- A. Analysed
- B. Interpreted
- C. Timely
- D. Accurate
- E. Relevant
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 # 79
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.
What type of supply chain does Maxi Ltd currently have?
- A. Symmetric
- B. Asymmetrical
- C. Centralised
- D. Bureaucratic
Answer: A
Explanation:
Maxi Ltd hasstrong relationships with its suppliersand holdsregular meetings, indicating asymmetric supply chain. In a symmetric supply chain, both buyers and suppliers collaborate effectively and share a balanced relationship. (LO 1.1)
NEW QUESTION # 80
Megan, theDirector of Operationsat Orange Windows Ltd, is concerned aboutovercapacity. Should she be worried?
- A. Yes - overcapacity means that the organisation has wasted resources
- B. No - overcapacity means there are unused resources within the operations department
- C. Yes - overcapacity means that some customer orders may not be fulfilled
- D. No - undercapacity will lead to unsold products
Answer: A
Explanation:
* Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.
* Customer orders will still be fulfilled(eliminating option B).
* Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.
(LO 2.2, See p.115)
NEW QUESTION # 81
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