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Reliable L6M9 Test Objectives Pdf | L6M9 100% Free Certification Questions
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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q23-Q28):
NEW QUESTION # 23
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 pricing mechanism is being used with supplier Y?
- A. Indexation
- B. Fixed price
- C. Variable price
- D. Gain share
Answer: A
Explanation:
Indexationis the correct pricing mechanism because the price is adjusted based onCPI (Consumer Price Index), which is a form of indexed pricing. This ensures that prices fluctuate in response to inflation or other economic indicators. (See LO 3.3)
NEW QUESTION # 24
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 # 25
Asimple supply chainconsists of threecommercial roles. What are these?
- A. Organisation
- B. Buyer
- C. Supplier
- D. Distributor
- E. Manufacturer
Answer: A,B,C
Explanation:
Abasic supply chainconsists ofthree key roles:
* Supplier# Provides materials or products to the organisation
* Organisation# The business that processes/manages the product
* Buyer# The final customer who purchases the product
Distributor and Manufacturerexist in morecomplex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)
NEW QUESTION # 26
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 # 27
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. No - the concept of trade-offs means that the organisation can position itself to achieve both effectiveness and efficiency
- C. Yes - engaging in trade-offs means that continuous improvement methodologies are no longer required
- D. Yes - the hotel must make a trade-off between efficiency or effectiveness, it cannot have both
Answer: B
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 # 28
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Achieving the Supply Network Design (L6M9) certification can significantly impact your career progression and earning potential. This certification showcases your expertise and knowledge to employers, making you a valuable asset in the CIPS L6M9 industry. With the rapidly evolving nature of the CIPS world, staying up-to-date with the latest technologies and trends is crucial. The L6M9 Certification Exam enables you to learn these changes and ensures you remain current in your field.
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