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100% Pass Quiz 2025 Efficient CIPS L6M9: Supply Network Design Actual Test Answers
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Quiz L6M9 - Perfect Supply Network Design Actual Test Answers
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CIPS Supply Network Design Sample Questions (Q28-Q33):
NEW QUESTION # 28
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
- A. Yes - there are occasions when an organisation would choose not to fulfil customer demand
- B. No - organisations should always aim to meet customer demand or resources will be underutilised
- C. No - this would negatively affect the profit the organisation could make
- D. Yes - there are exceptions, but these are always outside of the organisation's control
Answer: A
Explanation:
While organisations generally try to fulfil customer demand, there are times when theystrategicallychoose not to. A common reason is maintaining a premium image-limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
NEW QUESTION # 29
Which of the following areexamples of Linear Programming (LP) solvers? SelectALLthat apply.
- A. MATLAB
- B. Excel
- C. CPLEX
- D. LPX
- E. Lindo
Answer: A,B,C,E
Explanation:
Excel, Lindo, MATLAB, and CPLEXare all realLinear Programming (LP) solversused foroptimization problems.
#LPX is made up-it does not exist. (See LO 1.3, p.47)
NEW QUESTION # 30
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 toteam 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 is the nature of the COO's consideration?
- A. Push technique
- B. Corporate strategy
- C. Variance analysis
- D. Theory of Constraints
Answer: D
Explanation:
This is an issue related to theTheory of Constraints, as Team 2 is thebottleneckaffecting overall production efficiency. TheTheory of Constraintsfocuses on identifying and managing the most critical limitation in a system. (See LO 3.3)
NEW QUESTION # 31
Which of the following appear in the concept ofTheory of Constraints? Select ALL that apply.
- A. Rope
- B. Safe harbour
- C. Boat
- D. Drum
- E. Buffer
Answer: A,D,E
Explanation:
TheTheory of Constraints (TOC)includes theDrum, Buffer, and Ropeapproach. This method helps manage constraints in production by synchronising workflow. TheDrumsets the pace, theBufferprotects against variability, and theRopeensures efficient scheduling.Boat and safe harbourare not part of TOC. (See p.204) For further reading onDrum-Buffer-Rope, refer to this resource:#Theory of Constraints - Fortelabs
NEW QUESTION # 32
What does a forcefield diagram show?
- A. The flow of information through a supply network
- B. People in favour of change and against it
- C. The potential causes of an issue that has occurred
- D. The sequencing of events within an operational strategy
Answer: B
Explanation:
Aforcefield diagramidentifies forces (e.g., people or factors) that support or oppose change. This model, developed byKurt Lewin, helps organisations assess and manage resistance to change. (See p.196)
NEW QUESTION # 33
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