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CIPS Supply Network Design Sample Questions (Q57-Q62):

NEW QUESTION # 57
Liedtka (1998) describesfive attributesnecessary for aprocurement professionalto developstrategic thinking. What are these?

A. Systems perspective
B. Hypothesis driven
C. Intent focused
D. Thinking in time
E. Risk awareness
F. Intelligent optimism

Answer: A,B,C,D,F

Explanation:
* Thecorrect five attributesof strategic thinking are:#Systems perspective#Intent focused#Intelligent optimism#Thinking in time#Hypothesis driven
#Option B (Risk awareness) is incorrect-it isnotone of Liedtka's five attributes.
(See LO 2.1, p.65)

NEW QUESTION # 58
When would an organisation use aVRIO analysis?

A. To benchmark the organisation against similar organisations in the market
B. To identify internal resources that provide competitive advantage
C. To monitor performance of the operations department against predetermined criteria
D. To create a vision and mission statement for the organisation

Answer: B

Explanation:
* VRIO analysishelps an organisationidentify internal resourcesthat give it acompetitive advantage.
* VRIO stands forValue, Rarity, Imitability, Organisation-factors that determine whether a resource can sustain a competitive edge.
* Itdoes notfocus on benchmarking (C) or performance monitoring (B).
(LO 2.2, See p.103)

NEW QUESTION # 59
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?

A. To gain better access to emerging markets
B. To please shareholders
C. To avoid the inefficiency trap
D. To decrease fixed costs

Answer: D

Explanation:
* Outsourcing replaces fixed costs with variable costs-companies onlypay for what they use, rather than maintaining their own fleet.
* Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.
* Option C is incorrectas there is no mention of shareholders in the scenario.
* Option D is incorrectsince the inefficiency trap relates tooffshoring.
(LO 1.2, See p.44)

NEW QUESTION # 60
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 toteam 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 is the nature of the COO's consideration?

A. Push technique
B. Theory of Constraints
C. Variance analysis
D. Corporate strategy

Answer: B

Explanation:
This is an issue related to theTheory of Constraints, as Team 2 is thebottleneckaffecting overall production efficiency. TheTheory of Constraintsfocuses on identifying and managing the most critical limitation in a system. (See LO 3.3)

NEW QUESTION # 61
Scenario:
Blue Bear Ltd is amultifunctional manufacturing organisationwith aglobal supply chainand customers in over30 different countries. Each function within the company hasdifferent supplynetworksand relationships.
For eachfunction, select the correctValue Chain ActivityandSupply Network Typefrom the given options.

Answer:

Explanation:

Explanation:

A white and black list with black text AI-generated content may be incorrect.

NEW QUESTION # 62
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