CIPS Supply Network Design L6M9 Exam Dumps: Updated Questions & Answers (September 2025)

The company follows ademand-ledstrategy since production capacity is adjustedbased on actual customer orders. No stock is produced without confirmed demand. (See LO 2.2)

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TheBoston Consulting Group (BCG) Matrixidentifies four categories of products based on market size and growth rate. It is a useful tool for evaluating whether a product is performing well and whether it’s worth investing in. Organisations use this matrix to determine which products to invest in and which ones to discontinue. (See p.130)

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Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.

Customer orders will still be fulfilled(eliminating option B).

Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.

(LO 2.2, See p.115)

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AnEfficient Frontier diagramcan have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages incontinuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.136)

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The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.

Option A is incorrectbecause supplier development is not solely about cost reduction—it also focuses onquality and efficiency.

Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want awidersupplier base.

Option D is incorrectbecause no system caneliminatelogistics risks entirely—there will always beuncertainties.

(See LO 1.1, p.2)

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Sequencinginvolves balancinglogic, cost, and speedto optimise production. Prioritising orders purely by arrival time (Option A) or cost efficiency (Option B) might not be practical. Similarly, making sure all orders finish at the same time (Option D) isn't always necessary. (See p.183)

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✅Externally SupportiveisStage 4, where an organisation’s operations function is astrategic asset, drivingcompetitive advantage.

????The four stages in order:1️⃣Internally Neutral– Focus on avoiding mistakes2️⃣Externally Neutral– Keeping up with industry standards3️⃣Internally Supportive– Aligning operations with business strategy4️⃣Externally Supportive– Operations function is acompetitive differentiator

This model isimportant for the exam, somemorise the stages!(See LO 2.2, p.99)

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Outsourcing replaces fixed costs with variable costs—companies onlypay for what they use, rather than maintaining their own fleet.

Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.

Option C is incorrectas there is no mention of shareholders in the scenario.

Option D is incorrectsince the inefficiency trap relates tooffshoring.

(LO 1.2, See p.44)

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Asupply chainis asimple, linearsystem where products move from A → B → C.Asupply networkismulti-layered, withhorizontal and vertical connections, making itmore complex.

Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.

Complexity (C):A supply network ismore intricatethan a single supply chain.

Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.

Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.

Location of players (E) is incorrect, as both supply chains and networks can belocal or global.

(LO 1.1, See p.8)

Operational staff would make the plan and pass this up to senior managers for approval. This is the opposite of a top-down approach, where senior managers make the plan and tell the operational staff what to do. (See p.187)

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