Free PDF 2025 L6M9: Supply Network Design–Reliable Exam Dumps

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CIPS L6M9 Exam Syllabus Topics:

Topic	Details
Topic 1	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.
Topic 2	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.
Topic 3	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".

CIPS Supply Network Design Sample Questions (Q80-Q85):

NEW QUESTION # 80
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?

A. To gain better access to emerging markets
B. To please shareholders
C. To decrease fixed costs
D. To avoid the inefficiency trap

Answer: C

Explanation:
* Outsourcing replaces fixed costs with variable costs-companies onlypay for what they use, rather than maintaining their own fleet.
* Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.
* Option C is incorrectas there is no mention of shareholders in the scenario.
* Option D is incorrectsince the inefficiency trap relates tooffshoring.
(LO 1.2, See p.44)

NEW QUESTION # 81
Which of the following examples of a supplier would be suitable forStrategic Supplier BusinessReviews?
Select ALL that apply.

A. A partnership arrangement
B. A top-tier supplier in a tiered supply chain
C. Supplier of direct components
D. Short-term bottleneck supplier
E. Sole sourcing

Answer: A,B,E

Explanation:
Strategic Supplier Business Reviewsare used for long-term and important suppliers. The study guide states that this type of review is more commonly seen where an organisation has significantsole sourcing, tiering, or partnership relationships, particularly those spanning a long time scale. Sharing future plans and incorporating developments in each organisation is important for maintaining strategic integrity.
* Option D (short-term bottleneck supplier)is incorrect because strategic reviews are for long-term supplier relationships.
* Option E (supplier of direct components)is incorrect because it does not specify that the supplier is of strategic importance. (See p.190)

NEW QUESTION # 82
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.

A. Price per car wash
B. Number of employees
C. Fixed costs
D. Number of customers
E. Variable costs

Answer: A,C,E

Explanation:
Greg needs to know hisfixed costs, variable costs, and price per car washto 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
Thebreak-even pointis when revenue = costs, which means washing20 cars per day(£10 × 20 = £200 revenue, covering fixed and variable costs).
* Number of customers (C) is incorrect, as this iscalculated from the break-even formula, not an input.
* Number of employees (E) is incorrect, as it isnot a direct factorin the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)

NEW QUESTION # 83
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?

A. Demand smoothing
B. Lead
C. Incremental
D. Lag

Answer: A

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 # 84
What is the purpose ofsupplier development?

A. To add value to the supply chain
B. To reduce the number of suppliers upon which a business would become dependent
C. To lower prices, which will increase the profit margin
D. To ensure that there are no logistics or delivery issues within the supply chain

Answer: A

Explanation:
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
* Option A is incorrectbecause supplier development is not solely about cost reduction-it also focuses onquality and efficiency.
* Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want a widersupplier base.
* Option D is incorrectbecause no system caneliminatelogistics risks entirely-there will always be uncertainties.
(See LO 1.1, p.2)

NEW QUESTION # 85
......

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Free PDF 2025 L6M9: Supply Network Design–Reliable Exam Dumps

Pursue Certifications L6M9 Exam Dumps Exam Questions

CIPS L6M9 Exam Syllabus Topics:

CIPS Supply Network Design Sample Questions (Q80-Q85):

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