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CIPS Supply Network Design Sample Questions (Q46-Q51):

NEW QUESTION # 46
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These items are produced using imported raw materials from a variety of suppliers, many of whom arebased in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable to cost increases and fluctuating currency values. What is Joy completing?

  • A. Sensitivity Analysis
  • B. Background Check
  • C. Investment Appraisal
  • D. Gearing Ratio

Answer: A

Explanation:
This is a sensitivity analysis-checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)


NEW QUESTION # 47
LTL Ltd is a manufacturing organisation producing made-to-order equipment for the construction industry, such as bespoke windows and doors. The Head of Operations has received four large orders and is considering the sequencing of production. Which of the following should the company do?

  • A. Use a First Come, First Serve system to prioritise the orders that were made first, ensuring customer satisfaction
  • B. Create the orders in the most logical, economic, and fastest pattern. This may mean that the first order received is the last to be produced
  • C. Sequence the orders in the way that will be the cheapest to produce, creating the highest profit margin
  • D. Start manufacturing the order that has the longest completion time first so all orders are ready at the same time

Answer: B

Explanation:
Sequencinginvolves balancinglogic, cost, and speedto optimise production. Prioritising orders purely by arrival time (Option A) or cost efficiency (Option B) might not be practical. Similarly, making sure all orders finish at the same time (Option D) isn't always necessary. (See p.183)


NEW QUESTION # 48
Which of the following are examples of investment appraisal techniques? Select ALL that apply.

  • A. Payback period
  • B. Cash flow impact
  • C. Gearing
  • D. Liquidity
  • E. Return on investment

Answer: A,B,E

Explanation:
Investment appraisal techniques help assess whether an investment, such as purchasing new machinery, is financially viable.Return on investment, cash flow impact, and payback periodare all investment appraisal methods.Liquidity and gearingassess financial health but do not determine whether to make an investment.
(See p.160)


NEW QUESTION # 49
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 # 50
In a bottom-up process for planning and control, who would make the strategic plan?

  • A. Middle managers
  • B. Operational staff
  • C. Senior managers
  • D. Stakeholders

Answer: B

Explanation:
Operational staff would make the plan and pass this up to senior managers for approval. This is the opposite of a top-down approach, where senior managers make the plan and tell the operational staff what to do. (See p.
187)


NEW QUESTION # 51
......

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