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CIPS Supply Network Design Sample Questions (Q73-Q78):

NEW QUESTION # 73
In amanufacturing organisationthat produces cupcakes, which of the following categories ofcapacitytakes into accountstaff absencesandunplanned lossessuch as a late delivery of raw materials?

A. Design capacity
B. Available capacity
C. Effective capacity
D. Actual capacity

Answer: D

Explanation:
* Actual capacityaccounts forreal-life factors, includingstaff absences, supply chain delays, and other disruptions.
* Design capacity (A)is themaximumproduction level in an ideal scenario (no disruptions).
* Effective capacity (B) and available capacity (C) are the same, accounting forplanned stoppages, butnot unplanned losses.
(LO 2.2, See p.115)

NEW QUESTION # 74
Which of the following statements aboutDynamic Capability TheoryareTRUE? SelectALLthat apply.

A. It can be utilised to understand how the operations functionreconfigures its competenciesin response to changes in the marketplace
B. It can contribute to thecompetitive advantageof the organisation
C. Information sharing throughout thesupply networkis important to creating dynamic capability
D. The focus is on reducing costs to ensure the organisation remains profitable

Answer: A,B,C

Explanation:
#Option A is correct-Dynamic Capability Theory helps companiesadjust their competenciesto market changes.#Option B is correct-Dynamic capabilities contribute tocompetitive advantage.#Option D is correct-Information sharingwithin the supply chain is key tobuilding dynamic capabilities.
#Option C is incorrect-Dynamic Capability Theory doesnot focus on cost reduction, but rather onagility and responsivenesstomarket changes.
Note:This section also coversPorter's 5 Forces, STEEPLE, and the Product Life Cycle, which are important topics for revision!
(See LO 2.1, p.88)

NEW QUESTION # 75
Scenario:
Five manufacturing organisations are working withdifferent productsand usingvarious operational strategies. Each product aligns with acategory from the Boston Consultancy Group (BCG) Matrix, and each organisation is implementing aspecific operational strategy.
For eachorganisation, select thecorrect Product TypeandOperational Strategy.

Answer:

Explanation:

Explanation:
A screenshot of a product description AI-generated content may be incorrect.

NEW QUESTION # 76
Company A manufactures wheels for Company B, which manufactures cars. Traditionally, Company A would complete the wheels and conduct quality assessments before sending them to Company B, which would then begin assembling cars. However, a new CEO at Company B has introduced atechnology system that enablessimultaneous production, meaning Company B starts manufacturing cars at the same time Company A begins producing wheels.
What is this new system known as?

A. Start to finish
B. Finish to start
C. Start to start
D. Finish to finish

Answer: C

Explanation:
Start to startmeans two different organisations at different levels of the supply chainbegin their work simultaneouslyrather than sequentially. This is the opposite of astart to finishsystem, where the next process starts only when the previous one is completed. (See LO 1.2, p.19)

NEW QUESTION # 77
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.
Which of the following is thetrade-offin the modification of product X?

A. Quality
B. Flexibility
C. Speed
D. Environment

Answer: C

Explanation:
The modification ofproduct Xis aimed at making itmore environmentally friendlybut results ina longer production time. This means that thetrade-offisspeed-production takes longer. (LO 1.2)

NEW QUESTION # 78
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