CIPS L6M9 Practice Exams
Last updated on Oct 22,2026- Exam Code: L6M9
- Exam Name: Supply Network Design
- Certification Provider: CIPS
- Latest update: Oct 22,2026
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand.
Are there any exceptions to when this may be the case?
- A . No – organisations should always aim to meet customer demand or resources will be underutilised
- B . No – this would negatively affect the profit the organisation could make
- C . Yes – there are occasions when an organisation would choose not to fulfil customer demand
- D . Yes – there are exceptions, but these are always outside of the organisation’s control
Sandeep is the Chief Financial Officer at Brass Knuckles Ltd. He has attended a meeting with the Head of Operations who has shown him several options of potential changes that can be made to the operations department of the business. These options have been plotted on the Efficiency Frontier.
What is the purpose of using the Efficiency Frontier to evaluate these options?
- A . This will identify the options which have potential for market growth
- B . This will list the options in order of return on investment
- C . This will estimate the success rate of each option
- D . This will identify the option that has a better return on investment with the same level of risk
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.
- A . Staff member’s experience
- B . Staff member’s efficiency
- C . Staff member’s salary
- D . Staff member’s time availability
- E . Staff member’s effectiveness
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.
What capacity strategy is being used for product Z?
- A . Lead
- B . Lag
- C . Incremental
- D . Demand smoothing
When would an organisation use a VRIO analysis?
- A . To identify internal resources that provide competitive advantage
- B . To monitor performance of the operations department against predetermined criteria
- C . To benchmark the organisation against similar organisations in the market
- D . To create a vision and mission statement for the organisation
Which of the following are typical objectives of Linear Programming (LP)? Select ALL that apply.
- A . Minimising inventory levels
- B . Maximising machine working hours
- C . Maximising transportation costs
- D . Minimising production costs
- E . Maximising labour working hours
Which of the following capacity planning strategies is the least conservative?
- A . Lead strategy
- B . Lag strategy
- C . Incremental strategy
- D . Demand smoothing
White Moon Ltd, a manufacturing organisation, is considering outsourcing transportation.
What would be a reason for doing this?
- A . To gain better access to emerging markets
- B . To decrease fixed costs
- C . To please shareholders
- D . To avoid the inefficiency trap
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
- A . Changes in competitor activity
- B . Raw materials are vulnerable
- C . There is a short lead time for the product
- D . Customer demand is low
Which of the following are examples of investment appraisal techniques? Select ALL that apply.
- A . Liquidity
- B . Gearing
- C . Return on investment
- D . Cash flow impact
- E . Payback period