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2025 CIPS L6M9 Updated New Test Pass4sure
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| Topic |
Details |
| Topic 1 |
- Assess the strategic value of resource planning and control: This part targets Resource Planners, focusing on evaluating strategic resource planning concepts such as forecasting, scheduling, monitoring, and controlling resources effectively within the operational framework.
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| Topic 2 |
- Understand and apply leadership skills and behaviors appropriate for strategically improving the procurement and supply chain function: This section of the exam measures the skills of Supply Chain Managers and covers understanding leadership behaviors that enhance procurement processes. It assesses how to strategically improve supply chain functions, focusing on a key skill like "Strategic Decision Making".
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| Topic 3 |
- Understand operations strategy and its contribution to overall business success: Targeting Operations Directors, this section evaluates understanding of operations strategy's impact on organizations, including aligning with business goals, market requirements, and resource management.
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CIPS Supply Network Design Sample Questions (Q82-Q87):
NEW QUESTION # 82
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 to team 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 system is used by ABC Ltd?
- A. ERP
- B. MRP
- C. Lean
- D. KPI
Answer: A
Explanation:
The system used isERP (Enterprise Resource Planning)since it links multiple business functions such as HR and finance.MRP and MRPIIare primarily used formanufacturing/operations, andKPIrefers to performance measurement rather than a system. (See LO 3.3)
NEW QUESTION # 83
Megan, theDirector of Operationsat Orange Windows Ltd, is concerned aboutovercapacity. Should she be worried?
- A. Yes - overcapacity means that the organisation has wasted resources
- B. No - overcapacity means there are unused resources within the operations department
- C. No - undercapacity will lead to unsold products
- D. Yes - overcapacity means that some customer orders may not be fulfilled
Answer: A
Explanation:
* Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.
* Customer orders will still be fulfilled(eliminating option B).
* Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.
(LO 2.2, See p.115)
NEW QUESTION # 84
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 Butter Effect
- B. The Forrest Effect
- C. The Bullwhip Effect
- D. The Hierarchy Effect
Answer: C
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 # 85
Gill runs the operations department of amanufacturing organisationin Wales. The departmentemulates best practicesfrom competitors throughbenchmarkingand has recently introducedSix Sigmato prevent operational problems. Which of the following best describes Gill's approach to operations function?
- A. Internally supportive
- B. Externally neutral
- C. Internally neutral
- D. Externally supportive
Answer: B
Explanation:
This aligns withexternally neutral, which includes:
* Benchmarking against competitors
* Adopting best practices(Lean, Six Sigma, BPR, TQM)
* Emulating successful industry models
(LO 2.1, See p.99)
NEW QUESTION # 86
Which of the following is considered aprimary activityin theValue Chain?
- A. Technology development
- B. Procurement
- C. HR
- D. Marketing and sales
Answer: D
Explanation:
* Marketing and Salesis aprimary activityinPorter's Value Chain, directly contributing to delivering value to customers.
* Procurement (A), HR (B), and Technology Development (C) are support activities.
(LO 1.2, See p.29)
NEW QUESTION # 87
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