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L6M9 Test Discount | Valid L6M9 Vce Dumps

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CIPS Supply Network Design Sample Questions (Q30-Q35):

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 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 capacity strategy is being used?

A. Capacity-led
B. Demand-led
C. Demand-lag
D. Capacity-lag

Answer: B

Explanation:
The company follows ademand-ledstrategy since production capacity is adjustedbased on actual customer orders. No stock is produced without confirmed demand. (See LO 2.2)

NEW QUESTION # 31
According toFoster's Model of Operational Balance, how shouldbusiness strategybe developed?

A. Designed by senior leaders and updated once a year based on feedback from other members of the organisation
B. Select one member from each department to join a working group and represent the interests of that department
C. Use both formal and informal groups across the organisation
D. By senior leaders and filtered down through the company hierarchy

Answer: C

Explanation:
Foster'sland management-based approachsuggests thatbusiness strategy should not be dictated from the top down. Instead, it should involveboth formal and informal groupsthroughout the organisation. This helps preventartificial decision-making and misalignmentbetween leaders and employees.
(LO 2.1, See p.77)

NEW QUESTION # 32
In a bottom-up process for planning and control, who would make the strategic plan?

A. Operational staff
B. Middle managers
C. Stakeholders
D. Senior managers

Answer: A

Explanation:
Operational staff would make the plan and pass this up to senior managers for approval. This is the opposite of a top-down approach, where senior managers make the plan and tell the operational staff what to do. (See p.
187)

NEW QUESTION # 33
Which of the following aretypical objectives of Linear Programming (LP)?Select ALL that apply.

A. Minimising inventory levels
B. Maximising machine working hours
C. Minimising production costs
D. Maximising transportation costs
E. Maximising labour working hours

Answer: A,B,C,E

Explanation:
* Linear Programming (LP) aims to optimise resource allocationby:
* Minimising inventory levels(reduce storage costs).
* Maximising machine working hours(increase efficiency).
* Minimising production costs(reduce expenses).
* Maximising labour working hours(increase productivity).
* Option C is incorrect-LPaims to minimise, not maximise, transportation costs.
(LO 1.3, See p.47)

NEW QUESTION # 34
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 - with improvements to technology and communications, there is no need for trade-offs
B. Yes - engaging in trade-offs means that continuous improvement methodologies are no longer required
C. No - the concept of trade-offs means that the organisation can position itself to achieve both effectiveness and efficiency
D. Yes - the hotel must make a trade-off between efficiency or effectiveness, it cannot have both

Answer: C

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 # 35
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