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CIPS Supply Network Design Sample Questions (Q15-Q20):
NEW QUESTION # 15
Who are thefour business playersin theValue Net? SelectALLthat apply.
Answer: B,D,E,F
Explanation:
TheValue Netconsists ofsuppliers, customers, competitors, and complementors. Unlike asupply chain, which focuses on material and information flow, theValue Netis about creatingbusiness value.
* Supplier:Provides goods/services
* Customer:Purchases goods/services
* Competitor:Competes in the same market
* Complementor:A business that enhances your product/service offering
Buyer and distributorare not primary players in the Value Net. (See LO 1.2, p.31)
NEW QUESTION # 16
Of the following, which areexamples of disintermediation?Select ALL that apply.
Answer: A,E
Explanation:
* Disintermediationrefers toremoving intermediariesfrom a supply chain, meaning companies deal directly with consumers or suppliers.
* Option B (selling without an estate agent)removes thereal estate broker.
* Option C (farm selling directly to the public)removes theretailer/middleman.
* Option A is incorrectbecausebuying a forestisbackward vertical integration.
* Option D is incorrectbecause relocating a call centre isoffshoring.
* Option E is incorrectbecause hiring an external company for services isoutsourcing, not disintermediation.
(LO 1.2, See p.23)
NEW QUESTION # 17
Manuel has created an Efficient Frontier diagram mapping six options his organisation can take. Is it possible for there to be two curves on this diagram?
Answer: A
Explanation:
AnEfficient Frontier diagramcan have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages in continuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.
136)
NEW QUESTION # 18
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.
Whatcapacity strategyis being used for product Z?
Answer: C
Explanation:
The marketing team isencouraging customersto make orders at specific times of the year, whenproduct X is not being produced, tobetter allocate resources. This is a classic example ofdemand smoothing, where businesses adjust demand patterns to match available capacity. (LO 1.3)
NEW QUESTION # 19
Which of the following describes aProprietary Network?
Answer: C
Explanation:
AProprietary Networkis aprivately owned and controlled group.
* Option Brefers to aSocial Network
* Option Cdescribes aBureaucratic Network
* Option Drefers to anAsymmetric Network
Tip:Learn these definitions well, as they frequently appear in exam questions! (See LO 1.1)
NEW QUESTION # 20
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