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Prepare for the CIPS Supply Network Design exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.
QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIPS L6M9 exam and achieve success.
The questions for L6M9 were last updated on Apr 1, 2025.
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A simple supply chain consists of three commercial roles. What are these?
A basic supply chain consists of three key roles:
Supplier Provides materials or products to the organisation
Organisation The business that processes/manages the product
Buyer The final customer who purchases the product
Distributor and Manufacturer exist in more complex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)
The Improvement Gap Analysis can be utilised to manage trade-offs in operational strategy. Which of the following is measured by the IGA? Select ALL that apply.
The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137)
Jed is the Operations Manager at a cake manufacturer and is trying to determine the optimum capacity of the factory.
Which of the following would be true if the factory achieves optimum capacity? Select ALL that apply.
Optimum capacity is achieved when:
Customer demand is met (B)
Production costs are minimized (C)
Incorrect options:
(A) is false because optimum capacity isn't necessarily the physical limit
(D) is false because the factory should be operating at a profit, not breakeven
(E) is false because the lowest cost per unit is achieved, not the highest
(F) is false because inventory levels should be minimized, not maximized (to reduce storage costs)
(See LO 1.3, p.46)
Which of the following principles considers the volume of work undertaken by a given resource within an organisation?
Loading refers to allocating work to a person or machine---essentially 'loading' them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180)
Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point? Select ALL that apply.
Greg needs to know his fixed costs, variable costs, and price per car wash to determine his break-even point.
For example, if:
Fixed costs (rent, bills) = 100/day
Variable cost per car wash (soap, sponges) = 5
Price per car wash = 10
The break-even point is when revenue = costs, which means washing 20 cars per day (10 20 = 200 revenue, covering fixed and variable costs).
Number of customers (C) is incorrect, as this is calculated from the break-even formula, not an input.
Number of employees (E) is incorrect, as it is not a direct factor in the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
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