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CIPS L6M9 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand operations strategy and its contribution to overall business success: Targeting Operations Directors, this section evaluates understanding of operations strategy's impact on organizations, including aligning with business goals, market requirements, and resource management.
Topic 2	Understand and apply leadership skills and behaviors appropriate for strategically improving the procurement and supply chain function: This section of the exam measures the skills of Supply Chain Managers and covers understanding leadership behaviors that enhance procurement processes. It assesses how to strategically improve supply chain functions, focusing on a key skill like "Strategic Decision Making".
Topic 3	Assess the strategic value of resource planning and control: This part targets Resource Planners, focusing on evaluating strategic resource planning concepts such as forecasting, scheduling, monitoring, and controlling resources effectively within the operational framework.

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CIPS Supply Network Design Sample Questions (Q61-Q66):

NEW QUESTION # 61
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 Butter Effect
B. The Bullwhip Effect
C. The Forrest Effect
D. The Hierarchy Effect

Answer: B

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 # 62
What does a forcefield diagram show?

A. People in favour of change and against it
B. The potential causes of an issue that has occurred
C. The sequencing of events within an operational strategy
D. The flow of information through a supply network

Answer: A

NEW QUESTION # 63
ZYX Ltd creates products to meet customer demands. Each product created isunique to the customer's specification. What is the name of the workflow pattern used by ZYX Ltd?

A. Configured to order
B. Produced to order
C. Engineered to order
D. Made to order

Answer: C

Explanation:
* Engineered to order (ETO): Each product isuniquely designedbased on customer specifications.
* Made to order (MTO): The same product is made only when there is a demand.
* Configured to order (CTO): A hybrid approach where customers choose from predefined configurations (e.g., furniture with different color options).
* Produced to order: This is not a standard term for this type of workflow.
SinceZYX Ltdcreates products that are uniquely specified by each customer,engineered to order (ETO)is the correct answer. (See p.205)

NEW QUESTION # 64
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.
Whatarea of the product lifecycleis product Z in?

A. Growth
B. Introduction
C. Maturity
D. Decline

Answer: A

Explanation:
Product Z has been available fora short amount of time, andsales are still increasing. Since thedemand is growing but has not yet stabilized, it is in thegrowth stageof the product lifecycle. (LO 2.2)

NEW QUESTION # 65
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These items are produced using imported raw materials from a variety of suppliers, many of whom arebased in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable to cost increases and fluctuating currency values. What is Joy completing?

A. Investment Appraisal
B. Sensitivity Analysis
C. Background Check
D. Gearing Ratio

Answer: B

Explanation:
This is a sensitivity analysis-checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)

NEW QUESTION # 66
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