Latest L6M9 Exam Cram | Test L6M9 Cram
Latest L6M9 Exam Cram | Test L6M9 Cram
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L6M9 test braindumps & L6M9 exam questions & L6M9 exam guide
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CIPS Supply Network Design Sample Questions (Q81-Q86):
NEW QUESTION # 81
Megan, theDirector of Operationsat Orange Windows Ltd, is concerned aboutovercapacity. Should she be worried?
- A. Yes - overcapacity means that some customer orders may not be fulfilled
- B. Yes - overcapacity means that the organisation has wasted resources
- C. No - overcapacity means there are unused resources within the operations department
- D. No - undercapacity will lead to unsold products
Answer: B
Explanation:
* Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.
* Customer orders will still be fulfilled(eliminating option B).
* Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.
(LO 2.2, See p.115)
NEW QUESTION # 82
In a bottom-up process for planning and control, who would make the strategic plan?
- A. Senior managers
- B. Operational staff
- C. Middle managers
- D. Stakeholders
Answer: B
Explanation:
Operational staff would make the plan and pass this up to senior managers for approval. This is the opposite of a top-down approach, where senior managers make the plan and tell the operational staff what to do. (See p.
187)
NEW QUESTION # 83
Which of the following statements aboutDynamic Capability TheoryareTRUE? SelectALLthat apply.
- A. It can contribute to thecompetitive advantageof the organisation
- B. The focus is on reducing costs to ensure the organisation remains profitable
- C. Information sharing throughout thesupply networkis important to creating dynamic capability
- D. It can be utilised to understand how the operations functionreconfigures its competenciesin response to changes in the marketplace
Answer: A,C,D
Explanation:
#Option A is correct-Dynamic Capability Theory helps companiesadjust their competenciesto market changes.#Option B is correct-Dynamic capabilities contribute tocompetitive advantage.#Option D is correct-Information sharingwithin the supply chain is key tobuilding dynamic capabilities.
#Option C is incorrect-Dynamic Capability Theory doesnot focus on cost reduction, but rather onagility and responsivenesstomarket changes.
Note:This section also coversPorter's 5 Forces, STEEPLE, and the Product Life Cycle, which are important topics for revision!
(See LO 2.1, p.88)
NEW QUESTION # 84
Which of the following is adifferencebetween a supply chain and a supply network?Select ALL that apply.
- A. Number of players involved
- B. Complexity
- C. Dimension difference
- D. Profit made
- E. Location of the players
Answer: A,B,C
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 # 85
Which of the following are disadvantages of thesmall-capacity strategyin capacity planning? SelectALLthat apply.
- A. Unable to personalise requirements from customers
- B. Less responsive to changes in market demands
- C. Higher production costs
- D. Weaker ability to compete on price
Answer: C,D
Explanation:
Thesmall-capacity strategymeans a company deliberately produces below optimal capacity. This provides agility and flexibilityto respond to market changes and allows forcustomer personalisation. However,the disadvantagesinclude:
* Higher production costs(lack of economies of scale)
* Weaker ability to compete on price(since larger-capacity businesses have lowerproduction costs) Options C and Dare disadvantages oflarge-capacity strategy, not small-capacity. (See LO 1.3)
NEW QUESTION # 86
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