L6M9 Exam Questions & Answers
Supply Network Design • CIPS
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Sample L6M9 Questions
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Company A manufactures wheels for Company B, which manufactures cars. Traditionally, Company A would complete the wheels and conduct quality assessments before sending them to Company B, which would then begin assembling cars. However, a new CEO at Company B has introduced a technology system that enables simultaneous production, meaning Company B starts manufacturing cars at the same time Company A begins producing wheels.
What is this new system known as?
Start to start means two different organisations at different levels of the supply chain begin their work simultaneously rather than sequentially. This is the opposite of a start to finish system, where the next process starts only when the previous one is completed. (See LO 1.2, p.19)
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 the suppliers and has been told that it is not common practice to have contracts with the full range of suppliers. What should Alexandra do?
Since Wet Lettuce Incorporated operates a tiered 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 with tier-one suppliers are well managed. (See p.195)
In a bottom-up process for planning and control, who would make the strategic plan?
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)
Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients in the construction industry. She has a team of 20 consultants and is considering how many projects each team member should handle. In terms of capacity loading, which factors should Zelda consider when assigning projects? Select ALL that apply.
Capacity loading determines how much work each employee can handle. Key factors include experience, efficiency, time availability, and effectiveness. Salary is not relevant to determining workload capacity---though managers might mistakenly believe higher-paid employees should take on more. (See p.181)
Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers. Which of the following stocking policies should be used for this item?
The item described is a 'regular seller'---important to customers but not sold in high volumes. Keeping an average of 3 days' stock balances demand with the effort required for stock management. 'Never be out of stock' is only for high-demand, critical items, while 'monthly stock review' might lead to lost sales. (See p. 158)
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