L6M9 training study torrent & L6M9 guaranteed valid questions & L6M9 exam test simulator
L6M9 training study torrent & L6M9 guaranteed valid questions & L6M9 exam test simulator
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CIPS Supply Network Design Sample Questions (Q12-Q17):
NEW QUESTION # 12
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?
- A. To please shareholders
- B. To gain better access to emerging markets
- C. To avoid the inefficiency trap
- D. To decrease fixed costs
Answer: D
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 # 13
Which of the following examples of a supplier would be suitable forStrategic Supplier BusinessReviews?
Select ALL that apply.
- A. Short-term bottleneck supplier
- B. Supplier of direct components
- C. A partnership arrangement
- D. Sole sourcing
- E. A top-tier supplier in a tiered supply chain
Answer: C,D,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 # 14
Who are thefour business playersin theValue Net? SelectALLthat apply.
- A. Complementor
- B. Buyer
- C. Distributor
- D. Competitor
- E. Customer
- F. Supplier
Answer: A,D,E,F
Explanation:
TheValue Netconsists ofsuppliers, customers, competitors, and complementors. Unlike asupply chain, which focuses on material and information flow, theValue Netis about creatingbusiness value.
* Supplier:Provides goods/services
* Customer:Purchases goods/services
* Competitor:Competes in the same market
* Complementor:A business that enhances your product/service offering
Buyer and distributorare not primary players in the Value Net. (See LO 1.2, p.31)
NEW QUESTION # 15
ZYX Ltd creates products to meet customer demands. Each product created isunique to the customer's specification. What is the name of the workflow pattern used by ZYX Ltd?
- A. Configured to order
- B. Produced to order
- C. Made to order
- D. Engineered to order
Answer: D
Explanation:
* Engineered to order (ETO): Each product isuniquely designedbased on customer specifications.
* Made to order (MTO): The same product is made only when there is a demand.
* Configured to order (CTO): A hybrid approach where customers choose from predefined configurations (e.g., furniture with different color options).
* Produced to order: This is not a standard term for this type of workflow.
SinceZYX Ltdcreates products that are uniquely specified by each customer,engineered to order (ETO)is the correct answer. (See p.205)
NEW QUESTION # 16
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 Directorsis 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.
What is themain concernregarding the option to outsource the manufacturing of product Y?
- A. Competence
- B. Scalability
- C. Finance
- D. Cost
Answer: B
Explanation:
The main concern with outsourcingproduct Yis whether theoutsourced companycanhandle a potential increase in demand. This issue is related toscalability, as an external supplier may struggle to ramp up production if demand rises. (LO 1.2)
NEW QUESTION # 17
......
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