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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q67-Q72):
NEW QUESTION # 67
For which of the following supply examples istrustin the supplierleast important?
- A. A bottleneck item critical to production
- B. A strategic item with high supply risk
- C. A non-critical item with low supply risk
- D. A leverage item with high profit impact
Answer: C
Explanation:
Non-critical itemsinvolve low value and low risk, usually managed viatransactional or arm's-length relationships where trust plays a minor role.
Short cited term: "non-critical = low trust required." (L5M7 Study Guide, p. 221) Reference:CIPS L5M7 Study Guide, p. 221.
NEW QUESTION # 68
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Cheaper
- B. Flexibility for support and maintenance
- C. Higher costs
- D. Higher quality
- E. Less environmental impact
Answer: B,E
Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.
NEW QUESTION # 69
When would you use aFishbone (Ishikawa) Diagram?
- A. To identify the cause of a problem
- B. To clarify a relationship
- C. To decide which supplier to use
- D. To map issues in the supply chain
Answer: A
Explanation:
AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).
Short cited term: "used to identify root causes of problems." (L5M7 Study Guide, p. 126) Reference:CIPS L5M7 Study Guide, p. 126.
NEW QUESTION # 70
Which of the following tactics helps organisations in the middle of a supply chain protect themselves from the Bullwhip Effect?
- A. Have buffer stock
- B. Conduct due diligence on lower-tier suppliers
- C. Trade in a strong currency
- D. Employ a younger workforce
Answer: A
Explanation:
TheBullwhip Effectdescribes amplified demand fluctuations up the supply chain;buffer stockmitigates shortages caused by sudden demand changes.
Short cited term: "buffer stock helps counter demand fluctuation" (L5M7 Study Guide, p. 4).
Reference:CIPS L5M7 Study Guide, p. 4.
NEW QUESTION # 71
Long runs, stable product design, and inventory buffers are objectives of which business function?
- A. Manufacturing
- B. Sourcing
- C. Sales
- D. Logistics
Answer: A
Explanation:
Manufacturing objectivesemphasise efficiency throughlong production runs,stable design, andinventory bufferingto ensure continuity of output.
Short cited term: "manufacturing - long runs and inventory buffer." (L5M7 Study Guide, p. 36) Reference:CIPS L5M7 Study Guide, p. 36.
NEW QUESTION # 72
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