CIPS L6M9 VALID EXAM FORUM, VALID L6M9 TEST PRACTICE

CIPS L6M9 Valid Exam Forum, Valid L6M9 Test Practice

CIPS L6M9 Valid Exam Forum, Valid L6M9 Test Practice

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CIPS Supply Network Design Sample Questions (Q62-Q67):

NEW QUESTION # 62
Ajewelry manufacturerhas recently acquired themining companythat supplies the precious metals used in its jewelry production.
What is this an example of?

  • A. Forward vertical integration
  • B. Backward vertical integration
  • C. Forward horizontal integration
  • D. Backward horizontal integration

Answer: B

Explanation:
Backward vertical integrationoccurs when a companyacquires a supplier or producerthat is further upstreamin the supply chain. In contrast,forward vertical integrationhappens when a companybuys a retailer or distributorfurtherdownstream.
#Note:Forward horizontalandbackward horizontal integrationdo not exist-these are trick options. (See LO 1.2, p.42)


NEW QUESTION # 63
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. Start manufacturing the order that has the longest completion time first so all orders are ready at the same time
  • B. Use a First Come, First Serve system to prioritise the orders that were made first, ensuring customer satisfaction
  • C. 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
  • D. Sequence the orders in the way that will be the cheapest to produce, creating the highest profit margin

Answer: C

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 # 64
Ping Lin Ltd is a toy manufacturer based in China. The company has acomplex supply chaininvolving raw material suppliers, retailers, international distributors, and logistics firms. Zeng, a Logistics Coordinator, has noticedirregularities in the ordering of materials in the lower part of the supply chain. Combined with irregular consumer buying patterns, this poses a risk to the organisation.
What is this phenomenon known as?

  • A. The Hierarchy Effect
  • B. The Forrest Effect
  • C. The Bullwhip Effect
  • D. The Butter Effect

Answer: C

Explanation:
TheBullwhip Effectdescribes howsmall changesin demand at the consumer level createlarger variancesin supply chain orders upstream. It leads to inefficiencies, overstocking, or shortages.
#Note:This is also known as theForrester Effect(not "Forrest Effect"-that was a trick!). A famous real- world example occurred duringCOVID-19, when panic-buying causedtoilet paper shortages.
For more insights, read:#The Bullwhip Effect & Toilet Paper Shortages(See LO 1.1, p.12)


NEW QUESTION # 65
Paul is the Operations Manager at a button factory. Buttons are incorporated into many different fashion garments, and as they are currently 'on trend,' there is a high demand for more buttons. Paul is concerned that the factory cannot produce the number of buttons that is being demanded in the marketplace. He has calculated that each team within the factory only has the capacity to create 1,000 buttons per day, and he will decline any requests for buttons that exceed this amount. In terms of Capacity Loading, what is this called?

  • A. Complete loading
  • B. Finite loading
  • C. Maximum loading
  • D. Process loading

Answer: B

Explanation:
This isfinite loading. There is a finite amount of buttons that can be produced. Finite means there is a limit.
This is the opposite ofinfinite loading, where a team can take on additional tasks/orders without any issues.
Maximum loadingis similar to finite loading, but the difference is subtle-maximum is the amount of work that is possible in a given time period, but no limits are placed on this. Infinite loading, a strict limit is placed.
(See p.181)


NEW QUESTION # 66
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?

  • A. Stock reviewed monthly
  • B. Never be out of stock
  • C. Maintain an average of 3 days stock
  • D. No stock held locally

Answer: C

Explanation:
The item described is a 'regular seller'-important to customers but not sold in high volumes. Keepingan average of 3 days' stockbalances 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)


NEW QUESTION # 67
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