Free Practice Questions for CIPS L6M9 Exam

The statement is TRUE, so we can immediatelyeliminate A and B.

Option C is correctbecauselarge organisations often have multiple business-level strategiesdepending onmarket conditions.

Example:McDonald’shasdifferent menusandmarketing strategiesin different countries.

Option D is incorrect—business-level strategiesdo not necessarily contradicteach other.

(See LO 2.1, p.75)

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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)

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Asupply chainis asimple, linearsystem where products move from A → B → C.Asupply networkismulti-layered, withhorizontal and vertical connections, making itmore complex.

Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.

Complexity (C):A supply network ismore intricatethan a single supply chain.

Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.

Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.

Location of players (E) is incorrect, as both supply chains and networks can belocal or global.

(LO 1.1, See p.8)

Six Sigmaemploysdedicated full-time teamsfocused oncontinuous improvement.

Kaizen (A)is anongoing improvement philosophybut does not require aspecialist team.

Employee suggestion schemes (B)are informal.

Value stream mapping (D)is a tool, not a full-time methodology.

(LO 2.3, See p.121)

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Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.

Customer orders will still be fulfilled(eliminating option B).

Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.

(LO 2.2, See p.115)

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Trade-offs involve balancing objectives(cost, quality, speed) toenhance both efficiency and effectiveness.

Technology helps (D), but trade-offs still existin areas likesustainability and ethical sourcing.

Continuous improvement (B) remains crucialeven with trade-offs.

(LO 2.2, See p.128-129)

This is anasymmetric relationship, meaning it isone-sided—one company has more power in the supply relationship.

Asymmetric supply networksoccur when one party is dependent on the other (e.g., XYZ Ltd relies on ABC Ltd for rare materials).

Symmetric networksinvolvemutual negotiation and equal dependence.

Since XYZ Ltdmust accept whatever ABC Ltd supplies, the relationship isasymmetric. (LO 1.1, See p.4)

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Analysed and interpreted arenotcharacteristics of good information. The key characteristics of good information are accuracy, reliability, timeliness, relevance, and completeness. (See p.178)

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Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)