100% PASS QUIZ 2025 MARVELOUS L6M9: EXAM SUPPLY NETWORK DESIGN QUESTIONS FEE

100% Pass Quiz 2025 Marvelous L6M9: Exam Supply Network Design Questions Fee

100% Pass Quiz 2025 Marvelous L6M9: Exam Supply Network Design Questions Fee

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CIPS Supply Network Design Sample Questions (Q66-Q71):

NEW QUESTION # 66
LTL Ltd is a manufacturing organisation producing made-to-order equipment for the construction industry, such as bespoke windows and doors. The Head of Operations has received four large orders and is considering the sequencing of production. Which of the following should the company do?

  • A. Sequence the orders in the way that will be the cheapest to produce, creating the highest profit margin
  • B. Create the orders in the most logical, economic, and fastest pattern. This may mean that the first order received is the last to be produced
  • C. Use a First Come, First Serve system to prioritise the orders that were made first, ensuring customer satisfaction
  • D. Start manufacturing the order that has the longest completion time first so all orders are ready at the same time

Answer: B

Explanation:
Sequencinginvolves balancinglogic, cost, and speedto optimise production. Prioritising orders purely by arrival time (Option A) or cost efficiency (Option B) might not be practical. Similarly, making sure all orders finish at the same time (Option D) isn't always necessary. (See p.183)


NEW QUESTION # 67
What is the purpose ofsupplier development?

  • A. To reduce the number of suppliers upon which a business would become dependent
  • B. To lower prices, which will increase the profit margin
  • C. To ensure that there are no logistics or delivery issues within the supply chain
  • D. To add value to the supply chain

Answer: D

Explanation:
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
* Option A is incorrectbecause supplier development is not solely about cost reduction-it also focuses onquality and efficiency.
* Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want a widersupplier base.
* Option D is incorrectbecause no system caneliminatelogistics risks entirely-there will always be uncertainties.
(See LO 1.1, p.2)


NEW QUESTION # 68
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 # 69
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 production method is used by ABC?

  • A. Earliest due date
  • B. First in, first out
  • C. Similar process
  • D. Shortest processing time

Answer: B

Explanation:
The production method isFirst In, First Out (FIFO)because orders are processed based on when they were received. This method ensures fairness in lead times across different customers. (See LO 3.2)


NEW QUESTION # 70
XYZ Ltd is a manufacturing organisation that buys raw materials from ABC Ltd, including rare materials such as rubies and gold. XYZ Ltd acceptsallorders from ABC Ltd as the materials are rare, making the relationshipone-sided. Which type of network best describes this relationship?

  • A. Proprietary
  • B. Asymmetric
  • C. Symmetric
  • D. Centralised

Answer: B

Explanation:
This is anasymmetric relationship, meaning it isone-sided-one company has more power in the supply relationship.
* Asymmetric supply networksoccur when one party is dependent on the other (e.g., XYZ Ltd relies on ABC Ltd for rare materials).
* Symmetric networksinvolvemutual negotiation and equal dependence.
Since XYZ Ltdmust accept whatever ABC Ltd supplies, the relationship isasymmetric. (LO 1.1, See p.4)


NEW QUESTION # 71
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