Real L6M9 Testing Environment | Exam L6M9 Collection
Real L6M9 Testing Environment | Exam L6M9 Collection
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CIPS L6M9 Exam Syllabus Topics:
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CIPS Supply Network Design Sample Questions (Q58-Q63):
NEW QUESTION # 58
XYZ Ltd is aretail organisationselling various hair care products. Themarketing teamis reviewingsales figuresfrom the past year and wants to determinewhich products should receive extra marketing.
One product haslow market sharebut exists in ahigh-growth market.
According to theBoston Consultancy Group (BCG) Matrix, which category does this product fall under?
- A. Star
- B. Problem Child
- C. Cash Cow
- D. Dog
Answer: B
Explanation:
#Problem Child(also calledQuestion Mark) refers to a product withlow market sharein ahigh-growth market.
#BCG Matrix Categories:
* Dog##Low market share, low market growth
* Cash Cow##High market share, low market growth
* Star##High market share, high market growth
* Problem Child (Question Mark)##Low market share, high market growth
#Exam Tip:The BCG Matrix is frequently tested. Be aware that "Problem Child" is sometimes called
"Question Mark"in other versions of the matrix!
(See LO 2.3, p.130)
NEW QUESTION # 59
Alexandra is the new Chief Procurement Officer at Wet Lettuce Incorporated, a manufacturing organisation that uses a tiered supply structure. She has asked to see the contracts with all thesuppliers and has been told that it is not common practice to have contracts with the full range of suppliers. What should Alexandra do?
- A. Set up meetings with the tier-one suppliers and assess the contracts with these suppliers
- B. Do nothing-if it is not common practice within the organisation, she should not change things
- C. Ensure contracts are immediately put in place with all suppliers within the tiered supply structure
- D. Amend the supply structure so that contracts are put in place with all suppliers
Answer: A
Explanation:
SinceWet Lettuce Incorporatedoperates atiered supply structure, it is common for contracts to be in place only with tier-one suppliers, while sub-contractors in lower tiers are managed by those suppliers. Instead of changing the entire structure, Alexandra should ensure that contracts and relationships withtier-one suppliers are well managed. (See p.195)
NEW QUESTION # 60
What would the Boston Consulting Group Matrix help an organisation decide?
- A. The break-even point
- B. The desirable size of the supply network
- C. Which product mix should be invested in
- D. The optimum number of suppliers
Answer: C
Explanation:
TheBoston Consulting Group (BCG) Matrixidentifies four categories of products based on market size and growth rate. It is a useful tool for evaluating whether a product is performing well and whether it's worth investing in. Organisations use this matrix to determine which products to invest in and which ones to discontinue. (See p.130)
NEW QUESTION # 61
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. Lag
- C. Demand smoothing
- D. Incremental
Answer: C
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 # 62
In a bottom-up process for planning and control, who would make the strategic plan?
- A. Operational staff
- B. Senior managers
- C. Stakeholders
- D. Middle managers
Answer: A
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 # 63
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