CIPS L6M9 Exam Review & Dumps L6M9 Reviews
CIPS L6M9 Exam Review & Dumps L6M9 Reviews
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Dumps L6M9 Reviews & Exam L6M9 Flashcards
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CIPS Supply Network Design Sample Questions (Q85-Q90):
NEW QUESTION # 85
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. Escape, eliminate, evade, end
- B. Avoid, eliminate, reduce, transfer
- C. Track, control, mitigate, reduce
- D. Terminate, escape, eliminate, destroy
Answer: B
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 # 86
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?
- A. To decrease fixed costs
- B. To gain better access to emerging markets
- C. To avoid the inefficiency trap
- D. To please shareholders
Answer: A
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 # 87
In amanufacturing organisationthat produces cupcakes, which of the following categories ofcapacitytakes into accountstaff absencesandunplanned lossessuch as a late delivery of raw materials?
- A. Design capacity
- B. Effective capacity
- C. Available capacity
- D. Actual capacity
Answer: D
Explanation:
* Actual capacityaccounts forreal-life factors, includingstaff absences, supply chain delays, and other disruptions.
* Design capacity (A)is themaximumproduction level in an ideal scenario (no disruptions).
* Effective capacity (B) and available capacity (C) are the same, accounting forplanned stoppages, butnot unplanned losses.
(LO 2.2, See p.115)
NEW QUESTION # 88
Which of the following describes aProprietary Network?
- A. A privately owned and controlled group
- B. A network that has both horizontal and vertical structures
- C. A relationship that is one-sided
- D. The sharing of materials in an informal setting
Answer: A
Explanation:
AProprietary Networkis aprivately owned and controlled group.
* Option Brefers to aSocial Network
* Option Cdescribes aBureaucratic Network
* Option Drefers to anAsymmetric Network
Tip:Learn these definitions well, as they frequently appear in exam questions! (See LO 1.1)
NEW QUESTION # 89
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. Lead
- B. Demand smoothing
- C. Incremental
- D. Lag
Answer: B
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 # 90
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