CIPS L6M9 Exam Dumps

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)

Lead strategy is the least conservative as it increases capacity before demand is proven, making it risky but proactive.

Lag strategy (B) waits for demand to exceed capacity before expanding.

Incremental strategy (C) expands gradually over time.

Demand smoothing (D) focuses on managing demand fluctuations, not increasing capacity.

(LO 1.3, See p.54-55)

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)

Capacity loading determines how much work each employee can handle. Key factors include experience, efficiency, time availability, and effectiveness. Salary is not relevant to determining workload capacity---though managers might mistakenly believe higher-paid employees should take on more. (See p.181)

Backward vertical integration occurs when a company acquires a supplier or producer that is further upstream in the supply chain. In contrast, forward vertical integration happens when a company buys a retailer or distributor further downstream.

Note: Forward horizontal and backward horizontal integration do not exist---these are trick options. (See LO 1.2, p.42)