CIPS L6M9 - Supply Network Design

Megan, theDirector of Operationsat Orange Windows Ltd, is concerned aboutovercapacity. Should she be worried?

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.

Which of the following arecontract pricing arrangementsused to control costs?Select ALL that apply.

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 production method is used by ABC?

Scenario:

Five manufacturing organisations usedifferent order prioritisation methodsandworkflow patterns. Each company follows a uniquestrategy for order processingandworkflow structure.

For eachorganisation, select thecorrect Prioritisation MethodandPattern of Workflow.

An organisation may haveseveral different business-level strategies. Is thisTRUE?

White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?

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?

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?

Which of the following arenotcharacteristics of good information?