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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q15-Q20):
NEW QUESTION # 15
According toFoster's Model of Operational Balance, how shouldbusiness strategybe developed?
Answer: A
Explanation:
Foster'sland management-based approachsuggests thatbusiness strategy should not be dictated from the top down. Instead, it should involveboth formal and informal groupsthroughout the organisation. This helps preventartificial decision-making and misalignmentbetween leaders and employees.
(LO 2.1, See p.77)
NEW QUESTION # 16
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: C
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 # 17
Which of the following principles considers the volume of work undertaken by a given resource within an organisation?
Answer: A
Explanation:
Loadingrefers to allocating work to a person or machine-essentially "loading" them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180)
NEW QUESTION # 18
ZYX Ltd creates products to meet customer demands. Each product created isunique to the customer's specification. What is the name of the workflow pattern used by ZYX Ltd?
Answer: A
Explanation:
* Engineered to order (ETO): Each product isuniquely designedbased on customer specifications.
* Made to order (MTO): The same product is made only when there is a demand.
* Configured to order (CTO): A hybrid approach where customers choose from predefined configurations (e.g., furniture with different color options).
* Produced to order: This is not a standard term for this type of workflow.
SinceZYX Ltdcreates products that are uniquely specified by each customer,engineered to order (ETO)is the correct answer. (See p.205)
NEW QUESTION # 19
In aResource-Based View (RBV)of strategic management, which characteristics make aresource strategically valuableto an organisation? SelectALLthat apply.
Answer: A,B,C
Explanation:
#The three characteristics of a valuable resource are:
* Scarcity- The resource isnot widely available.
* Originality- It isunique and not easily imitated.
* Immovability- The resourcecannot be easily transferredto another company.
#Incorrect options:
* Replicable: A valuable resource shouldNOTbe easily copied.
* Optimisable: A resource is valuable when it isalready optimised, not just when itcan beimproved.
(See LO 2.2, p.102)
NEW QUESTION # 20
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