L6M9 Exam Preparation Material with New L6M9 Dumps Questions
L6M9 2025 Training With 86 QA's
NEW QUESTION # 44
Which of the following arebenefits of optimising the supply chain?Select ALL that apply.
- A. Increase of business flexibility to cater for demand
- B. Higher profit margins
- C. Control of waste
- D. Use of AI and technology
- E. More accurate prediction of demand from customers
Answer: A,B,C,E
Explanation:
* Optimising the supply chainbrings benefits such asincreased flexibility,higher profit margins, better demand forecasting, andwaste reduction.
* Use of AI and technology (D) is incorrectbecause it is amethodto achieve supply chain optimisation, not abenefititself.
(LO 1.1, See p.3)
NEW QUESTION # 45
Which of the following is considered aprimary activityin theValue Chain?
- A. Procurement
- B. HR
- C. Technology development
- D. Marketing and sales
Answer: D
Explanation:
* Marketing and Salesis aprimary activityinPorter's Value Chain, directly contributing to delivering value to customers.
* Procurement (A), HR (B), and Technology Development (C) are support activities.
(LO 1.2, See p.29)
NEW QUESTION # 46
In aResource-Based View (RBV)of strategic management, which characteristics make aresource strategically valuableto an organisation? SelectALLthat apply.
- A. Immovability
- B. Optimisable
- C. Scarcity
- D. Replicable
- E. Originality
Answer: A,C,E
Explanation:
#The three characteristics of a valuable resource are:
* Scarcity- The resource isnot widely available.
* Originality- It isunique and not easily imitated.
* Immovability- The resourcecannot be easily transferredto another company.
#Incorrect options:
* Replicable: A valuable resource shouldNOTbe easily copied.
* Optimisable: A resource is valuable when it isalready optimised, not just when itcan beimproved.
(See LO 2.2, p.102)
NEW QUESTION # 47
Which of the following appear in the concept ofTheory of Constraints? Select ALL that apply.
- A. Boat
- B. Safe harbour
- C. Drum
- D. Rope
- E. Buffer
Answer: C,D,E
Explanation:
TheTheory of Constraints (TOC)includes theDrum, Buffer, and Ropeapproach. This method helps manage constraints in production by synchronising workflow. TheDrumsets the pace, theBufferprotects against variability, and theRopeensures efficient scheduling.Boat and safe harbourare not part of TOC. (See p.204) For further reading onDrum-Buffer-Rope, refer to this resource:#Theory of Constraints - Fortelabs
NEW QUESTION # 48
LTL Ltd is a manufacturing organisation producing made-to-order equipment for the construction industry, such as bespoke windows and doors. The Head of Operations has received four large orders and is considering the sequencing of production. Which of the following should the company do?
- A. Start manufacturing the order that has the longest completion time first so all orders are ready at the same time
- B. Use a First Come, First Serve system to prioritise the orders that were made first, ensuring customer satisfaction
- C. Create the orders in the most logical, economic, and fastest pattern. This may mean that the first order received is the last to be produced
- D. Sequence the orders in the way that will be the cheapest to produce, creating the highest profit margin
Answer: C
Explanation:
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)
NEW QUESTION # 49
When would an organisation use aVRIO analysis?
- A. To identify internal resources that provide competitive advantage
- B. To benchmark the organisation against similar organisations in the market
- C. To create a vision and mission statement for the organisation
- D. To monitor performance of the operations department against predetermined criteria
Answer: A
Explanation:
* VRIO analysishelps an organisationidentify internal resourcesthat give it acompetitive advantage.
* VRIO stands forValue, Rarity, Imitability, Organisation-factors that determine whether a resource can sustain a competitive edge.
* Itdoes notfocus on benchmarking (C) or performance monitoring (B).
(LO 2.2, See p.103)
NEW QUESTION # 50
Which of the following is atechnique for continuous improvementthat employs afull-time specialist improvement team?
- A. Six Sigma
- B. Employee suggestion scheme
- C. Value stream mapping
- D. Kaizen
Answer: A
Explanation:
* Six Sigmaemploysdedicated full-time teamsfocused oncontinuous improvement.
* Kaizen (A)is anongoing improvement philosophybut does not require aspecialist team.
* Employee suggestion schemes (B)are informal.
* Value stream mapping (D)is a tool, not a full-time methodology.
(LO 2.3, See p.121)
NEW QUESTION # 51
Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point?Select ALL that apply.
- A. Price per car wash
- B. Variable costs
- C. Fixed costs
- D. Number of employees
- E. Number of customers
Answer: A,B,C
Explanation:
Greg needs to know hisfixed costs, variable costs, and price per car washto determine his break-even point.
For example, if:
* Fixed costs(rent, bills) = £100/day
* Variable cost per car wash(soap, sponges) = £5
* Price per car wash= £10
Thebreak-even pointis when revenue = costs, which means washing20 cars per day(£10 × 20 = £200 revenue, covering fixed and variable costs).
* Number of customers (C) is incorrect, as this iscalculated from the break-even formula, not an input.
* Number of employees (E) is incorrect, as it isnot a direct factorin the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
NEW QUESTION # 52
A cupcake manufacturing organisation uses a 'management by exception' technique when it comes to planning and control. What does this mean?
- A. Exceptional performance is rewarded, for example through staff bonus schemes
- B. Audits and other control activities are completed by an outsourced company to ensure there is no bias in the investigations
- C. Reporting only takes place when non-compliance occurs
- D. Plans and control activities are created based on historical performance
Answer: C
Explanation:
Management by exception means that reporting only occurs when non-compliance happens or when results are outside the norm. In the case of a cupcake factory, there might be no quality control measures in place, but if an issue arises (e.g., food poisoning complaint), an investigation would be conducted. This is a risky strategy for such an organisation. (See p. 189)
NEW QUESTION # 53
Which of the following principles considers the volume of work undertaken by a given resource within an organisation?
- A. Process Control
- B. Loading
- C. Sequencing
- D. Prioritisation
Answer: B
Explanation:
Loadingrefers to allocating work to a person or machine-essentially "loading" them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180)
NEW QUESTION # 54
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.
Whatcapacity strategyis being used for product Z?
- A. Incremental
- B. Demand smoothing
- C. Lag
- D. Lead
Answer: B
Explanation:
The marketing team isencouraging customersto make orders at specific times of the year, whenproduct X is not being produced, tobetter allocate resources. This is a classic example ofdemand smoothing, where businesses adjust demand patterns to match available capacity. (LO 1.3)
NEW QUESTION # 55
Which area ofoperations strategyis concerned withinformation management systems, automation, and productivity?
- A. Process technology
- B. Capacity
- C. Supply network design
- D. Development and organisational design
Answer: A
Explanation:
* Process technologyrefers toinformation management systems, automation, and productivity tools.
* Capacity (A)is related toresource planning.
* Supply network design (B)deals withsupplier relationships and logistics.
* Development and organisational design (D)is aboutpeople, structures, and hierarchies.
(LO 2.1, See p.71)
NEW QUESTION # 56
Asimple supply chainconsists of threecommercial roles. What are these?
- A. Distributor
- B. Buyer
- C. Organisation
- D. Supplier
- E. Manufacturer
Answer: B,C,D
Explanation:
Abasic supply chainconsists ofthree key roles:
* Supplier# Provides materials or products to the organisation
* Organisation# The business that processes/manages the product
* Buyer# The final customer who purchases the product
Distributor and Manufacturerexist in morecomplex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)
NEW QUESTION # 57
Ajewelry manufacturerhas recently acquired themining companythat supplies the precious metals used in its jewelry production.
What is this an example of?
- A. Backward vertical integration
- B. Forward horizontal integration
- C. Backward horizontal integration
- D. Forward vertical integration
Answer: A
Explanation:
Backward vertical integrationoccurs when a companyacquires a supplier or producerthat is further upstreamin the supply chain. In contrast,forward vertical integrationhappens when a companybuys a retailer or distributorfurtherdownstream.
#Note:Forward horizontalandbackward horizontal integrationdo not exist-these are trick options. (See LO 1.2, p.42)
NEW QUESTION # 58
Ping Lin Ltd is a toy manufacturer based in China. The company has acomplex supply chaininvolving raw material suppliers, retailers, international distributors, and logistics firms. Zeng, a Logistics Coordinator, has noticedirregularities in the ordering of materials in the lower part of the supply chain. Combined with irregular consumer buying patterns, this poses a risk to the organisation.
What is this phenomenon known as?
- A. The Forrest Effect
- B. The Hierarchy Effect
- C. The Butter Effect
- D. The Bullwhip Effect
Answer: D
Explanation:
TheBullwhip Effectdescribes howsmall changesin demand at the consumer level createlarger variancesin supply chain orders upstream. It leads to inefficiencies, overstocking, or shortages.
#Note:This is also known as theForrester Effect(not "Forrest Effect"-that was a trick!). A famous real- world example occurred duringCOVID-19, when panic-buying causedtoilet paper shortages.
For more insights, read:#The Bullwhip Effect & Toilet Paper Shortages(See LO 1.1, p.12)
NEW QUESTION # 59
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