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Here are sample CIPS Supply Network Design (L6M9) Exam questions from real exam. You can get more CIPS Level 6 Professional Diploma in Procurement and Supply (L6M9) Exam premium practice questions at TestInsights.
Question 1
Which of the following are examples of Linear Programming (LP) solvers? Select ALL that apply.
Correct : A, B, C, D
Excel, Lindo, MATLAB, and CPLEX are all real Linear Programming (LP) solvers used for optimization problems.
LPX is made up---it does not exist. (See LO 1.3, p.47)
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Question 2
Giant Gyms is a fitness chain where clients pay a monthly subscription for full access to gym facilities. The company typically experiences a huge spike in new memberships in January due to New Year's fitness resolutions. However, to reduce this seasonal surge, Giant Gyms introduces a pricing structure that makes it cheaper to sign up in November, which is typically its slowest month.
What is this strategy called?
Correct : B
Demand smoothing attempts to influence customer behavior to balance demand fluctuations. Giant Gyms wants more customers in November rather than in January, preventing seasonal peaks and troughs.
Note:
Lead Strategy = expanding capacity before demand increases
Capacity Expansion = increasing production ability
Optimal Capacity = achieving the best cost-to-production ratio
(See LO 1.3, p.55)
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Question 3
What is the purpose of supplier development?
Correct : C
The primary goal of supplier development is to add value to the supply chain, not just to reduce costs.
Option A is incorrect because supplier development is not solely about cost reduction---it also focuses on quality and efficiency.
Option B is incorrect because reducing suppliers is not always the goal; sometimes businesses want a wider supplier base.
Option D is incorrect because no system can eliminate logistics risks entirely---there will always be uncertainties.
(See LO 1.1, p.2)
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Question 4
Dev is creating an Operations Strategy for his healthcare consultancy business. Which of the following describes an Operations Strategy? Select ALL that apply.
Correct : B, C
Option B is correct because Operations Strategy helps build a competitive advantage for the organisation.
Option C is correct because Operations Strategy must align with the overall organisational goals.
Option A is incorrect---it is Supply Chain Management that focuses on external processes.
Option D is incorrect because Operations Strategy is long-term, not short-ranged.
(See LO 2.1, p.63)
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Question 5
Liedtka (1998) describes five attributes necessary for a procurement professional to develop strategic thinking. What are these?
Correct : A, C, D, E, F
The correct five attributes of strategic thinking are:
Systems perspective
Intent focused
Intelligent optimism
Thinking in time
Hypothesis driven
Option B (Risk awareness) is incorrect---it is not one of Liedtka's five attributes.
(See LO 2.1, p.65)
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