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CIPS Supply Network Design Sample Questions (Q79-Q84):

NEW QUESTION # 79
Maxi Ltd is a medium-sized manufacturing organisation in the automotive industry that creates engines for cars. It has traditionally worked well with its suppliers, with strong relationships and regular meetings. There are currently around 15 suppliers who provide parts to Maxi Ltd.
Due to changing customer demands, Maxi Ltd will, from next month, modify the manufacturing of some of its products. Product X is being made more environmentally friendly, with output of CO2 being reduced by 32%. The product will take longer to produce, but there will be no additional cost to customers for this.
Maxi ltd are considering outsourcing the manufacturing of Product Y as it is not a product which is routinely ordered by customers. This will allow Maxi Ltd to focus on other products which generate higher revenues for the company. The concern within the Board of Directors is that if demand increases for this product, an outsourced company may not be able to cope with higher numbers of orders.
Product Z is an extremely popular item and oftentimes Maxi Ltd does not have the capacity to fulfil all orders. Consideration has been given to increasing the size of the factory, but this has been discarded as risky as demand is not guaranteed. The product has been available on the marketplace for a short amount of time and sales are continuing to increase, but the company believes this will soon plateau. To deal with current demand, the marketing team is working on campaigns to invite customers to make orders for this product at certain times of the year when product X is not being created in the factory.
This means resources can be reallocated to the creation of product Z.
Whatarea of the product lifecycleis product Z in?

A. Decline
B. Maturity
C. Introduction
D. Growth

Answer: D

Explanation:
Product Z has been available fora short amount of time, andsales are still increasing. Since thedemand is growing but has not yet stabilized, it is in thegrowth stageof the product lifecycle. (LO 2.2)

NEW QUESTION # 80
Which of the following areexamples of Linear Programming (LP) solvers? SelectALLthat apply.

A. Lindo
B. LPX
C. CPLEX
D. MATLAB
E. Excel

Answer: A,C,D,E

Explanation:
Excel, Lindo, MATLAB, and CPLEXare all realLinear Programming (LP) solversused foroptimization problems.
#LPX is made up-it does not exist. (See LO 1.3, p.47)

NEW QUESTION # 81
What is the purpose ofsupplier development?

A. To ensure that there are no logistics or delivery issues within the supply chain
B. To add value to the supply chain
C. To reduce the number of suppliers upon which a business would become dependent
D. To lower prices, which will increase the profit margin

Answer: B

Explanation:
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
* Option A is incorrectbecause supplier development is not solely about cost reduction-it also focuses onquality and efficiency.
* Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want a widersupplier base.
* Option D is incorrectbecause no system caneliminatelogistics risks entirely-there will always be uncertainties.
(See LO 1.1, p.2)

NEW QUESTION # 82
Linear Programming (LP) can be adopted bymany business functions. Who out of the following could use LP modelling?Select ALL that apply.

A. The HR manager who needs to plan work schedules for the staff
B. A financial assistant who needs to create a budget for the manufacturing department
C. The marketing manager who is deciding how many social media posts to create
D. An operations director who needs to choose between two products to manufacture
E. The logistics coordinator who is planning delivery routes

Answer: A,C,E

Explanation:
* LP is used for quantitative decision-making-finding the best possible outcome using numerical data.
* Option C (Marketing Manager)-LP can calculateoptimal ad frequencyfor sales conversion.
* Option D (HR Manager)-LP can help inworkforce scheduling.
* Option E (Logistics Coordinator)-LP can optimisedelivery routesfor cost efficiency.
* Option A and B are incorrectas LP doesn't apply to subjective decisions like product selection or budgeting.
(LO 1.3)

NEW QUESTION # 83
Which of the following aretypical objectives of Linear Programming (LP)?Select ALL that apply.

A. Maximising machine working hours
B. Maximising labour working hours
C. Maximising transportation costs
D. Minimising production costs
E. Minimising inventory levels

Answer: A,B,D,E

Explanation:
* Linear Programming (LP) aims to optimise resource allocationby:
* Minimising inventory levels(reduce storage costs).
* Maximising machine working hours(increase efficiency).
* Minimising production costs(reduce expenses).
* Maximising labour working hours(increase productivity).
* Option C is incorrect-LPaims to minimise, not maximise, transportation costs.
(LO 1.3, See p.47)

NEW QUESTION # 84
......

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