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L6M9 Quiz | Latest L6M9 Guide Files
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CIPS Supply Network Design Sample Questions (Q19-Q24):
NEW QUESTION # 19
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.
What type of supply chain does Maxi Ltd currently have?
- A. Asymmetrical
- B. Bureaucratic
- C. Centralised
- D. Symmetric
Answer: D
Explanation:
Maxi Ltd hasstrong relationships with its suppliersand holdsregular meetings, indicating asymmetric supply chain. In a symmetric supply chain, both buyers and suppliers collaborate effectively and share a balanced relationship. (LO 1.1)
NEW QUESTION # 20
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
- A. Yes - there are occasions when an organisation would choose not to fulfil customer demand
- B. No - this would negatively affect the profit the organisation could make
- C. Yes - there are exceptions, but these are always outside of the organisation's control
- D. No - organisations should always aim to meet customer demand or resources will be underutilised
Answer: A
Explanation:
While organisations generally try to fulfil customer demand, there are times when theystrategicallychoose not to. A common reason is maintaining a premium image-limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
NEW QUESTION # 21
Scenario:
Blue Bear Ltd is amultifunctional manufacturing organisationwith aglobal supply chainand customers in over30 different countries. Each function within the company hasdifferent supplynetworksand relationships.
For eachfunction, select the correctValue Chain ActivityandSupply Network Typefrom the given options.
Answer:
Explanation:
Explanation:
A white and black list with black text AI-generated content may be incorrect.
NEW QUESTION # 22
Who are thefour business playersin theValue Net? SelectALLthat apply.
- A. Buyer
- B. Complementor
- C. Supplier
- D. Distributor
- E. Customer
- F. Competitor
Answer: B,C,E,F
Explanation:
TheValue Netconsists ofsuppliers, customers, competitors, and complementors. Unlike asupply chain, which focuses on material and information flow, theValue Netis about creatingbusiness value.
* Supplier:Provides goods/services
* Customer:Purchases goods/services
* Competitor:Competes in the same market
* Complementor:A business that enhances your product/service offering
Buyer and distributorare not primary players in the Value Net. (See LO 1.2, p.31)
NEW QUESTION # 23
Which of the following statements aboutDemand Chain Management (DCM)areTRUE? SelectALLthat apply.
- A. Key drivers of demand chain management are cash flow and profitability
- B. Demand chain management is a strengths-based approach
- C. The supply chain uses forecasts and plans to understand customer demand
- D. There is a long-term focus
- E. Demand chain management focuses on cost minimisation
- F. An organisation can be effective or efficient, but not both
Answer: A,B,C,D
Explanation:
#Correct statements about DCM:
* (C)Cash flow and profitabilityarekey drivers.
* (D)It is astrengths-basedapproach, focusing onleveraging competitive advantages.
* (E)There is along-term focusrather than just short-term efficiency.
* (F)Usesforecasts and planningto understand customer demand.
#Incorrect statements:
* (A)False - A companyCANbe bothefficient and effective.
* (B)False -Supply Chain Management (SCM)focuses oncost minimisation, whileDemand Chain Management (DCM)focuses oncustomer value.
(See LO 2.3, p.125)
NEW QUESTION # 24
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