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CIPS L6M9 Exam Syllabus Topics:
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Details
Topic 1
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Topic 3
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CIPS Supply Network Design Sample Questions (Q42-Q47):
NEW QUESTION # 42
Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point?Select ALL that apply.
Answer: B,C,E
Explanation:
Greg needs to know hisfixed costs, variable costs, and price per car washto determine his break-even point.
For example, if:
* Fixed costs(rent, bills) = £100/day
* Variable cost per car wash(soap, sponges) = £5
* Price per car wash= £10
Thebreak-even pointis when revenue = costs, which means washing20 cars per day(£10 × 20 = £200 revenue, covering fixed and variable costs).
* Number of customers (C) is incorrect, as this iscalculated from the break-even formula, not an input.
* Number of employees (E) is incorrect, as it isnot a direct factorin the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
NEW QUESTION # 43
Asimple supply chainconsists of threecommercial roles. What are these?
Answer: A,B,E
Explanation:
Abasic supply chainconsists ofthree key roles:
* Supplier# Provides materials or products to the organisation
* Organisation# The business that processes/manages the product
* Buyer# The final customer who purchases the product
Distributor and Manufacturerexist in morecomplex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)
NEW QUESTION # 44
Carla is an Operations Manager at a bank. Customers are requestingmore digitalisationof services, and Carla is consideringa radical approachthat streamlines decision-making and creates efficiency in the organisation' s structural resources. What is this approach best known as?
Answer: D
Explanation:
Thekeyword here is "radical", which is a key feature ofbusiness process reengineering (BPR).
* Total quality management (A) is incorrectbecause TQM focuses ongradualquality improvements.
* Lean (C) is incorrectbecause it focuses onwaste reduction, which is not mentioned.
* Six Sigma (D) is incorrectbecause it focuses onprocess improvement through data and system development, but it is not consideredradical.
(LO 2.1, See p.68)
NEW QUESTION # 45
Which of the following is considered aprimary activityin theValue Chain?
Answer: C
Explanation:
* Marketing and Salesis aprimary activityinPorter's Value Chain, directly contributing to delivering value to customers.
* Procurement (A), HR (B), and Technology Development (C) are support activities.
(LO 1.2, See p.29)
NEW QUESTION # 46
XYZ Ltd is a manufacturing organisation that buys raw materials from ABC Ltd, including rare materials such as rubies and gold. XYZ Ltd acceptsallorders from ABC Ltd as the materials are rare, making the relationshipone-sided. Which type of network best describes this relationship?
Answer: C
Explanation:
This is anasymmetric relationship, meaning it isone-sided-one company has more power in the supply relationship.
* Asymmetric supply networksoccur when one party is dependent on the other (e.g., XYZ Ltd relies on ABC Ltd for rare materials).
* Symmetric networksinvolvemutual negotiation and equal dependence.
Since XYZ Ltdmust accept whatever ABC Ltd supplies, the relationship isasymmetric. (LO 1.1, See p.4)
NEW QUESTION # 47
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