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Information about CIPS L6M9 Exam
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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q28-Q33):
NEW QUESTION # 28
Of the following, which areexamples of disintermediation?Select ALL that apply.
- A. A business sells a property to a buyer without the use of an estate agent or broker
- B. A farm sells its products directly to the public
- C. A company relocates its call centre to another country to save on costs
- D. A factory hires an external organisation to provide cleaning and security services
- E. A furniture manufacturer buys a forest to produce the wood which it will chop down to make the furniture
Answer: A,B
Explanation:
* Disintermediationrefers toremoving intermediariesfrom a supply chain, meaning companies deal directly with consumers or suppliers.
* Option B (selling without an estate agent)removes thereal estate broker.
* Option C (farm selling directly to the public)removes theretailer/middleman.
* Option A is incorrectbecausebuying a forestisbackward vertical integration.
* Option D is incorrectbecause relocating a call centre isoffshoring.
* Option E is incorrectbecause hiring an external company for services isoutsourcing, not disintermediation.
(LO 1.2, See p.23)
NEW QUESTION # 29
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These items are produced using imported raw materials from a variety of suppliers, many of whom arebased in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable to cost increases and fluctuating currency values. What is Joy completing?
- A. Sensitivity Analysis
- B. Investment Appraisal
- C. Gearing Ratio
- D. Background Check
Answer: A
Explanation:
This is a sensitivity analysis-checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)
NEW QUESTION # 30
Which of the following is considered aprimary activityin theValue Chain?
- A. Procurement
- B. Marketing and sales
- C. Technology development
- D. HR
Answer: B
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 # 31
Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers. Which of the following stocking policies should be used for this item?
- A. Stock reviewed monthly
- B. Never be out of stock
- C. No stock held locally
- D. Maintain an average of 3 days stock
Answer: D
Explanation:
The item described is a 'regular seller'-important to customers but not sold in high volumes. Keepingan average of 3 days' stockbalances demand with the effort required for stock management. "Never be out of stock" is only for high-demand, critical items, while "monthly stock review" might lead to lost sales. (See p.
158)
NEW QUESTION # 32
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.
Whatarea of the product lifecycleis product Z in?
- A. Growth
- B. Decline
- C. Maturity
- D. Introduction
Answer: A
Explanation:
Product Z has been available fora short amount of time, andsales are still increasing. Since thedemand is growing but has not yet stabilized, it is in thegrowth stageof the product lifecycle. (LO 2.2)
NEW QUESTION # 33
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