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| Vendor: | CIPS |
|---|---|
| Exam Code: | L6M9 |
| Exam Name: | Supply Network Design |
| Exam Questions: | 84 |
| Last Updated: | February 24, 2026 |
| Related Certifications: | Level 6 Professional Diploma in Procurement and Supply |
| Exam Tags: | Advanced Level Supply Chain ManagersBusiness Operations Directors |
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Which area of operations strategy is concerned with information management systems, automation, and productivity?
Process technology refers to information management systems, automation, and productivity tools.
Capacity (A) is related to resource planning.
Supply network design (B) deals with supplier relationships and logistics.
Development and organisational design (D) is about people, structures, and hierarchies.
(LO 2.1, See p.71)
White Moon Ltd, a manufacturing organisation, is considering outsourcing transportation. What would be a reason for doing this?
Outsourcing replaces fixed costs with variable costs---companies only pay for what they use, rather than maintaining their own fleet.
Option A is incorrect because gaining market access is a benefit of offshoring, not outsourcing.
Option C is incorrect as there is no mention of shareholders in the scenario.
Option D is incorrect since the inefficiency trap relates to offshoring.
(LO 1.2, See p.44)
Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers. Which of the following stocking policies should be used for this item?
The item described is a 'regular seller'---important to customers but not sold in high volumes. Keeping an average of 3 days' stock balances demand with the effort required for stock management. 'Never be out of stock' is only for high-demand, critical items, while 'monthly stock review' might lead to lost sales. (See p. 158)
Liedtka (1998) describes five attributes necessary for a procurement professional to develop strategic thinking. What are these?
The correct five attributes of strategic thinking are:
Systems perspective
Intent focused
Intelligent optimism
Thinking in time
Hypothesis driven
Option B (Risk awareness) is incorrect---it is not one of Liedtka's five attributes.
(See LO 2.1, p.65)
Which of the following are examples of investment appraisal techniques? Select ALL that apply.
Investment appraisal techniques help assess whether an investment, such as purchasing new machinery, is financially viable. Return on investment, cash flow impact, and payback period are all investment appraisal methods. Liquidity and gearing assess financial health but do not determine whether to make an investment. (See p.160)
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