CIPS L6M9 Exam Dumps

Get All Supply Network Design Exam Questions with Validated Answers

L6M9 Pack
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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Free CIPS L6M9 Exam Actual Questions

Question No. 1

Which area of operations strategy is concerned with information management systems, automation, and productivity?

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Correct Answer: C

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)


Question No. 2

White Moon Ltd, a manufacturing organisation, is considering outsourcing transportation. What would be a reason for doing this?

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Correct Answer: B

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)


Question No. 3

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?

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Correct Answer: B

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)


Question No. 4

Liedtka (1998) describes five attributes necessary for a procurement professional to develop strategic thinking. What are these?

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Correct Answer: A, C, D, E, F

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)


Question No. 5

Which of the following are examples of investment appraisal techniques? Select ALL that apply.

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Correct Answer: C, D, E

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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