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| Topic |
Details |
| Topic 1 |
- 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".
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| Topic 2 |
- 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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| Topic 3 |
- 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.
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CIPS Supply Network Design Sample Questions (Q77-Q82):
NEW QUESTION # 77
Which of the following arenotcharacteristics of good information?
- A. Timely
- B. Analysed
- C. Relevant
- D. Interpreted
- E. Accurate
Answer: B,D
Explanation:
Analysed and interpreted arenotcharacteristics of good information. The key characteristics of good information are accuracy, reliability, timeliness, relevance, and completeness. (See p.178)
NEW QUESTION # 78
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. Similar process
- C. First in, first out
- D. Shortest processing time
Answer: C
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 # 79
What would the Boston Consulting Group Matrix help an organisation decide?
- A. The desirable size of the supply network
- B. The optimum number of suppliers
- C. Which product mix should be invested in
- D. The break-even point
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 # 80
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 Forrest Effect
- B. The Bullwhip Effect
- C. The Butter 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 # 81
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. Produced to order
- B. Engineered to order
- C. Made to order
- D. Configured to order
Answer: B
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 # 82
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