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CIPS L6M9 Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
CIPS Supply Network Design Sample Questions (Q65-Q70):
NEW QUESTION # 65
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
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
Gill runs the operations department of amanufacturing organisationin Wales. The departmentemulates best practicesfrom competitors throughbenchmarkingand has recently introducedSix Sigmato prevent operational problems. Which of the following best describes Gill's approach to operations function?
Answer: A
Explanation:
This aligns withexternally neutral, which includes:
* Benchmarking against competitors
* Adopting best practices(Lean, Six Sigma, BPR, TQM)
* Emulating successful industry models
(LO 2.1, See p.99)
NEW QUESTION # 67
Which of the followingcapacity planning strategiesis theleast conservative?
Answer: D
Explanation:
* Lead strategyis theleast conservativeas itincreases capacity before demand is proven, making it risky but proactive.
* Lag strategy (B)waits for demand toexceed capacitybefore expanding.
* Incremental strategy (C)expandsgradually over time.
* Demand smoothing (D)focuses onmanaging demand fluctuations, not increasing capacity.
(LO 1.3, See p.54-55)
NEW QUESTION # 68
Giant Gymsis a fitness chain where clientspay a monthly subscriptionfor full access to gym facilities. The company typically experiences ahuge spike in new memberships in Januarydue to New Year's fitness resolutions. However, toreduce this seasonal surge, Giant Gyms introduces apricing structure that makes it cheaper to sign up in November, which is typically itsslowest month.
What is this strategy called?
Answer: A
Explanation:
Demand smoothingattempts toinfluence customer behaviorto balancedemand fluctuations. Giant Gyms wants more customers inNovemberrather than inJanuary, preventingseasonal peaks and troughs.
#Note:
* Lead Strategy= expanding capacitybefore demand increases
* Capacity Expansion= increasing production ability
* Optimal Capacity= achieving thebest cost-to-production ratio
(See LO 1.3, p.55)
NEW QUESTION # 69
Which of the following arenotcharacteristics of good information?
Answer: C,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 # 70
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