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CIPS L6M9 Questions Tips For Better Preparation 2025
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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q71-Q76):
NEW QUESTION # 71
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 # 72
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. Bureaucratic
- D. Centralised
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 # 73
Linear Programming (LP) can be adopted bymany business functions. Who out of the following could use LP modelling?Select ALL that apply.
- A. The marketing manager who is deciding how many social media posts to create
- B. The HR manager who needs to plan work schedules for the staff
- C. The logistics coordinator who is planning delivery routes
- D. An operations director who needs to choose between two products to manufacture
- E. A financial assistant who needs to create a budget for the manufacturing department
Answer: A,B,C
Explanation:
* LP is used for quantitative decision-making-finding the best possible outcome using numerical data.
* Option C (Marketing Manager)-LP can calculateoptimal ad frequencyfor sales conversion.
* Option D (HR Manager)-LP can help inworkforce scheduling.
* Option E (Logistics Coordinator)-LP can optimisedelivery routesfor cost efficiency.
* Option A and B are incorrectas LP doesn't apply to subjective decisions like product selection or budgeting.
(LO 1.3)
NEW QUESTION # 74
Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers. Which of the following stocking policies should be used for this item?
- A. Maintain an average of 3 days stock
- B. No stock held locally
- C. Stock reviewed monthly
- D. Never be out of stock
Answer: A
Explanation:
The item described is a 'regular seller'-important to customers but not sold in high volumes. Keepingan average of 3 days' stockbalances demand with the effort required for stock management. "Never be out of stock" is only for high-demand, critical items, while "monthly stock review" might lead to lost sales. (See p.
158)
NEW QUESTION # 75
Jed is theOperations Managerat acake manufacturerand is trying to determine theoptimumcapacityof the factory.
Which of the following would be true if the factoryachieves optimum capacity? SelectALLthat apply.
- A. The lowest total cost for production is achieved
- B. The factory physically cannot produce more items
- C. The factory breaks even
- D. The highest cost per item is achieved
- E. The factory fulfills customer demand for items
- F. Inventory levels are maximized
Answer: A,E
Explanation:
Optimum capacityis achieved when:
* Customer demand is met (B)
* Production costs are minimized (C)
#Incorrect options:
* (A)is false because optimum capacityisn't necessarily the physical limit
* (D)is false because the factory should beoperating at a profit, not breakeven
* (E)is false because the lowest cost per unit is achieved, not the highest
* (F)is false becauseinventory levels should be minimized, not maximized (to reduce storage costs) (See LO 1.3, p.46)
NEW QUESTION # 76
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