L6M9 Vce Download, CIPS L6M9 Guide: Supply Network Design Latest Released
L6M9 Vce Download, CIPS L6M9 Guide: Supply Network Design Latest Released
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CIPS Supply Network Design Sample Questions (Q11-Q16):
NEW QUESTION # 11
Sandeep is the Chief Financial Officer at Brass Knuckles Ltd. He has attended a meeting with the Head of Operations who has shown him several options of potential changes that can be made to the operations department of the business. These options have been plotted on the Efficiency Frontier. What is the purpose of using the Efficiency Frontier to evaluate these options?
- A. This will list the options in order of return on investment
- B. This will estimate the success rate of each option
- C. This will identify the option that has a better return on investment with the same level of risk
- D. This will identify the options which have potential for market growth
Answer: C
Explanation:
The Efficiency Curve plots options (or trade-offs) on a graph based on the level of risk and ROI. The options that are closest to the curve are the best-these ones represent the best ROI with the same level of risk. (See p.
133)
NEW QUESTION # 12
Mabel, theOperations Directorat a hotel, is engaged in a debate abouttrade-offs. The CFO believes that efficiency and effectiveness cannot be achieved together. Is this correct?
- A. No - the concept of trade-offs means that the organisation can position itself to achieve both effectiveness and efficiency
- B. No - with improvements to technology and communications, there is no need for trade-offs
- C. Yes - engaging in trade-offs means that continuous improvement methodologies are no longer required
- D. Yes - the hotel must make a trade-off between efficiency or effectiveness, it cannot have both
Answer: A
Explanation:
* Trade-offs involve balancing objectives(cost, quality, speed) toenhance both efficiency and effectiveness.
* Technology helps (D), but trade-offs still existin areas likesustainability and ethical sourcing.
* Continuous improvement (B) remains crucialeven with trade-offs.
(LO 2.2, See p.128-129)
NEW QUESTION # 13
What does a forcefield diagram show?
- A. The sequencing of events within an operational strategy
- B. The potential causes of an issue that has occurred
- C. The flow of information through a supply network
- D. People in favour of change and against it
Answer: D
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 # 14
Ping Lin Ltd is a toy manufacturer based in China. The company has acomplex supply chaininvolving raw material suppliers, retailers, international distributors, and logistics firms. Zeng, a Logistics Coordinator, has noticedirregularities in the ordering of materials in the lower part of the supply chain. Combined with irregular consumer buying patterns, this poses a risk to the organisation.
What is this phenomenon known as?
- A. The Forrest Effect
- B. The Hierarchy Effect
- C. The Butter Effect
- D. The Bullwhip Effect
Answer: D
Explanation:
TheBullwhip Effectdescribes howsmall changesin demand at the consumer level createlarger variancesin supply chain orders upstream. It leads to inefficiencies, overstocking, or shortages.
#Note:This is also known as theForrester Effect(not "Forrest Effect"-that was a trick!). A famous real- world example occurred duringCOVID-19, when panic-buying causedtoilet paper shortages.
For more insights, read:#The Bullwhip Effect & Toilet Paper Shortages(See LO 1.1, p.12)
NEW QUESTION # 15
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. Stock reviewed monthly
- C. No stock held locally
- 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 # 16
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