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CIPS Supply Network Design Sample Questions (Q78-Q83):
NEW QUESTION # 78
Dev is creating anOperations Strategyfor hishealthcare consultancybusiness. Which of the following describes anOperations Strategy? SelectALLthat apply.
- A. The Operations Strategy is aligned with the Organisational Strategy
- B. Operations Strategy is a short-ranged plan
- C. Operations Strategy focuses on external processes
- D. Operations Strategy supports the competitive advantage of the company
Answer: A,D
Explanation:
* Option B is correctbecause Operations Strategy helps build acompetitive advantagefor the organisation.
* Option C is correctbecause Operations Strategy must align with theoverall organisational goals.
* Option A is incorrect-it isSupply Chain Managementthat focuses onexternalprocesses.
* Option D is incorrectbecauseOperations Strategy is long-term, not short-ranged.
(See LO 2.1, p.63)
NEW QUESTION # 79
Which of the following is adifferencebetween a supply chain and a supply network?Select ALL that apply.
- A. Number of players involved
- B. Complexity
- C. Location of the players
- D. Dimension difference
- E. Profit made
Answer: A,B,D
Explanation:
Asupply chainis asimple, linearsystem where products move from A # B # C.Asupply networkismulti- layered, withhorizontal and vertical connections, making itmore complex.
* Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.
* Complexity (C):A supply network ismore intricatethan a single supply chain.
* Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.
* Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.
* Location of players (E) is incorrect, as both supply chains and networks can belocal or global.
(LO 1.1, See p.8)
NEW QUESTION # 80
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
- A. There is a short lead time for the product
- B. Changes in competitor activity
- C. Customer demand is low
- D. Raw materials are vulnerable
Answer: B,D
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 # 81
Scenario:
Blue Bear Ltd is amultifunctional manufacturing organisationwith aglobal supply chainand customers in over30 different countries. Each function within the company hasdifferent supply networksand relationships.
For eachfunction, select the correctValue Chain ActivityandSupply Network Typefrom the given options.
Answer:
Explanation:
Explanation:
Function 1:This function is asupport activityresponsible for ensuring other functions have the right resources to complete work. It has acomplex structurewithhorizontal and verticalreporting lines, and each employee has clear objectives.#Correct answer:HR|Bureaucratic Function 2:This function ensures that theFive Rightsare achieved. It makeskey strategic decisionsthat other departments follow.Power is centralised, and staff support other business areas as needed.#Correct Answer:
Procurement|Centralised
Function 3:Staff describe themselves as the"people that get stuff done". This is aPrimary Activityin the Value Chain, responsible for turning raw materials intofinished products. The function has ahighly valued supply network, bothupstream and downstream, withjoint decision-making.#Correct answer:Operations| Symmetrical Function 4:Although aPrimary Activity, this function isnot well-organised. It relies ontrust-based relationshipsrather than formal contracts. Information is shared informally. It is responsible forwarehousing and transportation.#Correct Answer:Outbound Logistics|Social Function 5:This function has aone-sided supply network. It is aPrimary Activityanddeals directly with customers.#Correct Answer:Marketing and Sales|Asymmetrical A screenshot of a white sheet AI-generated content may be incorrect.
NEW QUESTION # 82
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?
- A. Symmetric
- B. Asymmetric
- C. Centralised
- D. Proprietary
Answer: B
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 # 83
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