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
Which area of operations strategy is concerned with information management systems, automation, and productivity?
- A . Capacity
- B . Supply network design
- C . Process technology
- D . Development and organisational design
In a bottom-up process for planning and control, who would make the strategic plan?
- A . Operational staff
- B . Middle managers
- C . Senior managers
- D . Stakeholders
Risks are always present within organisational strategies, and it is important that they are assessed.
Which of the following are strategies for dealing with risk?
- A . Avoid, eliminate, reduce, transfer
- B . Terminate, escape, eliminate, destroy
- C . Escape, eliminate, evade, end
- D . Track, control, mitigate, reduce
A jewelry manufacturer has recently acquired the mining company that supplies the precious metals
used in its jewelry production.
What is this an example of?
- A . Forward horizontal integration
- B . Backward horizontal integration
- C . Forward vertical integration
- D . Backward vertical integration
The operations department of ABC Ltd has recently launched a new product. The product is manufactured within a large factory and then sent to retailers for sale. The department has a system
in place which details the components required for the product and the quantities required to fulfil customer demand. The system works online and links to other areas of the business including HR and finance.
So far, several large orders have been placed for the product from different retailers. The Chief Operations Officer (COO) has decided to programme the completion of the orders based on when the orders were placed. The benefit of this strategy is that it will give each customer a similar lead time. Thus far no buffer stock has been created as products are only created when orders are received.
Three teams are required to make the product and the product flows from team one to team two to team three, each team adding a component to the product. Unfortunately, team two are short staffed and are completing their work at a slower rate than the other two teams. This is a huge consideration for the COO as it will impact upon the capacity of the organisation.
The retailers have all signed contracts with ABC Ltd and the COO is extremely happy that they are long term contracts. Contract 1 is with retailer X and the price is set for three years. Contract 2 is with retailer Y and is a five year contract where the price will be reviewed annually in line with CPI. Contract 3 has a variable pricing mechanism based on the volume of products ordered.
What pricing mechanism is being used with supplier Y?
- A . Gain share
- B . Fixed price
- C . Variable price
- D . Indexation
Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers.
Which of the following stocking policies should be used for this item?
- A . Never be out of stock
- B . Maintain an average of 3 days stock
- C . Stock reviewed monthly
- D . No stock held locally
Which of the following are disadvantages of the small-capacity strategy in capacity planning? Select ALL that apply.
- A . Higher production costs
- B . Weaker ability to compete on price
- C . Unable to personalise requirements from customers
- D . Less responsive to changes in market demands
Of the following, which are examples of disintermediation? Select ALL that apply.
- A . A furniture manufacturer buys a forest to produce the wood which it will chop down to make the furniture
- B . A business sells a property to a buyer without the use of an estate agent or broker
- C . A farm sells its products directly to the public
- D . A company relocates its call centre to another country to save on costs
- E . A factory hires an external organisation to provide cleaning and security services
Which of the following principles considers the volume of work undertaken by a given resource within an organisation?
- A . Process Control
- B . Prioritisation
- C . Sequencing
- D . Loading
In a Resource-Based View (RBV) of strategic management, which characteristics make a resource strategically valuable to an organisation? Select ALL that apply.
- A . Scarcity
- B . Originality
- C . Immovability
- D . Replicable
- E . Optimisable