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CIPS L6M9 Exam Syllabus Topics:

Topic	Details
Topic 1	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.
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	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 (Q61-Q66):

NEW QUESTION # 61
A car manufacturing organisation organises formal, regular meetings with itstier one suppliersfor the purpose of collaborating on improvements and changes to the final product. What is this arrangement known as?

A. Supplier improvement project
B. Supplier forum
C. Supplier focus group
D. Supplier association

Answer: D

Explanation:
This is asupplier association-the key clue in the question is "formal, regular meetings."
* Asupplier improvement projectwould be aone-offinitiative rather than ongoing formal meetings.
* Asupplier forumismore informalthan what is described in the question.
* Asupplier focus groupmeets to discuss specific topics rather than engaging in regular collaboration on improvements.
(See p.191)

NEW QUESTION # 62
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 atechnology system that enablessimultaneous production, meaning Company B starts manufacturing cars at the same time Company A begins producing wheels.
What is this new system known as?

A. Start to start
B. Finish to start
C. Start to finish
D. Finish to finish

Answer: A

Explanation:
Start to startmeans two different organisations at different levels of the supply chainbegin their work simultaneouslyrather than sequentially. This is the opposite of astart to finishsystem, where the next process starts only when the previous one is completed. (See LO 1.2, p.19)

NEW QUESTION # 63
Which of the following are disadvantages of thesmall-capacity strategyin capacity planning? SelectALLthat apply.

A. Weaker ability to compete on price
B. Higher production costs
C. Less responsive to changes in market demands
D. Unable to personalise requirements from customers

Answer: A,B

Explanation:
Thesmall-capacity strategymeans a company deliberately produces below optimal capacity. This provides agility and flexibilityto respond to market changes and allows forcustomer personalisation. However,the disadvantagesinclude:
* Higher production costs(lack of economies of scale)
* Weaker ability to compete on price(since larger-capacity businesses have lowerproduction costs) Options C and Dare disadvantages oflarge-capacity strategy, not small-capacity. (See LO 1.3)

NEW QUESTION # 64
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 pricing mechanism is being used with supplier Y?

A. Variable price
B. Fixed price
C. Indexation
D. Gain share

Answer: C

Explanation:
Indexationis the correct pricing mechanism because the price is adjusted based onCPI (Consumer Price Index), which is a form of indexed pricing. This ensures that prices fluctuate in response to inflation or other economic indicators. (See LO 3.3)

NEW QUESTION # 65
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.

A. Changes in competitor activity
B. There is a short lead time for the product
C. Raw materials are vulnerable
D. Customer demand is low

Answer: A,C

Explanation:
Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)

NEW QUESTION # 66
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