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L6M9 Certification, Valid L6M9 Exam Pdf

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CIPS Supply Network Design Sample Questions (Q43-Q48):

NEW QUESTION # 43
Risks are always present within organisational strategies, and it is important that they are assessed. Which of the following arestrategies for dealing with risk?

A. Avoid, eliminate, reduce, transfer
B. Terminate, escape, eliminate, destroy
C. Escape, eliminate, evade, end
D. Track, control, mitigate, reduce

Answer: A

Explanation:
Thefour risk management strategiesare often remembered asTEAR:
* Transfer: Shift the risk to another party (e.g., insurance, outsourcing).
* Eliminate: Remove the risk entirely where possible.
* Avoid: Choose not to engage in activities that introduce the risk.
* Reduce: Take measures to minimize the impact or likelihood of the risk occurring.
(See p.200)

NEW QUESTION # 44
Which of the following is considered aprimary activityin theValue Chain?

A. HR
B. Procurement
C. Marketing and sales
D. Technology development

Answer: C

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 # 45
Which of the following is adifferencebetween a supply chain and a supply network?Select ALL that apply.

A. Dimension difference
B. Profit made
C. Number of players involved
D. Complexity
E. Location of the players

Answer: A,C,D

Explanation:
Asupply chainis asimple, linearsystem where products move from A # B # C.Asupply networkismulti- layered, withhorizontal and vertical connections, making itmore complex.
* Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.
* Complexity (C):A supply network ismore intricatethan a single supply chain.
* Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.
* Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.
* Location of players (E) is incorrect, as both supply chains and networks can belocal or global.
(LO 1.1, See p.8)

NEW QUESTION # 46
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.
Which of the following is thetrade-offin the modification of product X?

A. Speed
B. Environment
C. Quality
D. Flexibility

Answer: A

Explanation:
The modification ofproduct Xis aimed at making itmore environmentally friendlybut results ina longer production time. This means that thetrade-offisspeed-production takes longer. (LO 1.2)

NEW QUESTION # 47
An organisation may haveseveral different business-level strategies. Is thisTRUE?

A. Yes-the different business-level strategies will contradict each other
B. No-effective vertical alignment between operations strategy and corporate strategy means there must only beoneorganisation-wide operations strategy
C. No-an organisation should only haveonestrategy, which can be likened to a 'master plan' with high- level ambitions
D. Yes-different parts of the business may operate indifferent marketplacesor have different services
/portfolios

Answer: D

Explanation:
* The statement is TRUE, so we can immediatelyeliminate A and B.
* Option C is correctbecauselarge organisations often have multiple business-level strategies depending onmarket conditions.
* Example:McDonald'shasdifferent menusandmarketing strategiesin different countries.
* Option D is incorrect-business-level strategiesdo not necessarily contradicteach other.
(See LO 2.1, p.75)

NEW QUESTION # 48
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