CIPS L6M9 Exam Practice Test Instant Access

Question 1

A cupcake manufacturing organisation uses a 'management by exception' technique when it comes to planning and control. What does this mean?

AAudits and other control activities are completed by an outsourced company to ensure there is no bias in the investigations

BReporting only takes place when non-compliance occurs

CPlans and control activities are created based on historical performance

DExceptional performance is rewarded, for example through staff bonus schemes

Answer : B

Management by exception means that reporting only occurs when non-compliance happens or when results are outside the norm. In the case of a cupcake factory, there might be no quality control measures in place, but if an issue arises (e.g., food poisoning complaint), an investigation would be conducted. This is a risky strategy for such an organisation. (See p. 189)

Question 2

When designing a supply network, which of the following stages should be completed first?

AAnalyse potential risks

BConfirm the network scope

CDetermine the approach for managing material flow

DTrack information flow

Answer : B

The correct sequence for designing a supply network is:

Determine strategic objectives

Confirm the network scope

Analyse potential risks

Determine the approach for managing material and information flow

Track material and information flow

Since network scope defines the boundaries, scale, and overall structure of the network, it must be confirmed first. (LO 1.1, See p.3)

Question 3

Rayan is the new CFO of an international banking organisation operating in London. He has been invited to a meeting of the top executives regarding corporate strategies and strategic resource planning. He believes that the organisation must be led by the strategy first, with resources then created to meet the requirement. Is this always the case?

AYes - corporate strategy dictates operational strategy and thus resource allocation

BYes - resources can only be assembled once objectives have been set

CNo - corporate strategies will not assist in resource planning

DNo - strategies can be created to fit an organisation's resource capabilities

Answer : D

The question asks if strategy must always come first. The correct answer is no because strategies can also be developed based on available resources. Corporate strategy often influences resource planning, but sometimes an organisation will assess its resources and build a strategy accordingly. (See p. 150)

Question 4

Which of the following principles considers the volume of work undertaken by a given resource within an organisation?

AProcess Control

BPrioritisation

CSequencing

DLoading

Answer : D

Loading refers to allocating work to a person or machine---essentially 'loading' them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180)

Question 5

Which of the following are examples of investment appraisal techniques? Select ALL that apply.

ALiquidity

BGearing

CReturn on investment

DCash flow impact

EPayback period

Answer : C, D, E

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

Question 6

Which of the following are benefits of optimising the supply chain? Select ALL that apply.

AIncrease of business flexibility to cater for demand

BHigher profit margins

CMore accurate prediction of demand from customers

DUse of AI and technology

EControl of waste

Answer : A, B, C, E

Optimising the supply chain brings benefits such as increased flexibility, higher profit margins, better demand forecasting, and waste reduction.

Use of AI and technology (D) is incorrect because it is a method to achieve supply chain optimisation, not a benefit itself.

(LO 1.1, See p.3)

Question 7

Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients in the construction industry. She has a team of 20 consultants and is considering how many projects each team member should handle. In terms of capacity loading, which factors should Zelda consider when assigning projects? Select ALL that apply.

AStaff member's experience

BStaff member's efficiency

CStaff member's salary

DStaff member's time availability

EStaff member's effectiveness

Answer : A, B, D, E

Capacity loading determines how much work each employee can handle. Key factors include experience, efficiency, time availability, and effectiveness. Salary is not relevant to determining workload capacity---though managers might mistakenly believe higher-paid employees should take on more. (See p.181)

CIPS L6M9 Supply Network Design Exam Practice Test