Key details for this exam, checked against the published exam outline
Each question shows the correct answer and an explanation of why it is right
Linear Programming (LP) can be adopted by many business functions. Who out of the following could use LP modelling? Select ALL that apply.
LP is used for quantitative decision-making---finding the best possible outcome using numerical data.
Option C (Marketing Manager)---LP can calculate optimal ad frequency for sales conversion.
Option D (HR Manager)---LP can help in workforce scheduling.
Option E (Logistics Coordinator)---LP can optimise delivery routes for cost efficiency.
Option A and B are incorrect as LP doesn't apply to subjective decisions like product selection or budgeting.
(LO 1.3)
Ping Lin Ltd is a toy manufacturer based in Chin
a. The company has a complex supply chain involving raw material suppliers, retailers, international distributors, and logistics firms. Zeng, a Logistics Coordinator, has noticed irregularities 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?
The Bullwhip Effect describes how small changes in demand at the consumer level create larger variances in supply chain orders upstream. It leads to inefficiencies, overstocking, or shortages.
Note: This is also known as the Forrester Effect (not 'Forrest Effect'---that was a trick!). A famous real-world example occurred during COVID-19, when panic-buying caused toilet paper shortages.
For more insights, read: The Bullwhip Effect & Toilet Paper Shortages (See LO 1.1, p.12)
For more insights, read: The Bullwhip Effect & Toilet Paper Shortages (See LO 1.1, p.12)
When would an organisation use a VRIO analysis?
VRIO analysis helps an organisation identify internal resources that give it a competitive advantage.
VRIO stands for Value, Rarity, Imitability, Organisation---factors that determine whether a resource can sustain a competitive edge.
It does not focus on benchmarking (C) or performance monitoring (B).
(LO 2.2, See p.103)
An organisation may have several different business-level strategies. Is this TRUE?
The statement is TRUE, so we can immediately eliminate A and B.
Option C is correct because large organisations often have multiple business-level strategies depending on market conditions.
Example: McDonald's has different menus and marketing strategies in different countries.
Option D is incorrect---business-level strategies do not necessarily contradict each other.
(See LO 2.1, p.75)
Mabel, the Operations Director at a hotel, is engaged in a debate about trade-offs. The CFO believes that efficiency and effectiveness cannot be achieved together. Is this correct?
Trade-offs involve balancing objectives (cost, quality, speed) to enhance both efficiency and effectiveness.
Technology helps (D), but trade-offs still exist in areas like sustainability and ethical sourcing.
Continuous improvement (B) remains crucial even with trade-offs.
(LO 2.2, See p.128-129)
84 questions covering all exam domains, starting from $20
Exam domains verified against: Official CIPS L6M9 exam guide, last checked September 2026.
Assess the meaning of supply network design and its influence on the organization, including what constitutes a supply network, how its terminology and structures differ from supply chains, and where operations sit within the broader network. Evaluate how strategic supply chain networks should be configured by examining decisions around make or buy, insourcing versus outsourcing, and vertical integration. Assess the influence of capacity on strategic supply chain design, including optimum capacity levels, timing of capacity changes, and capacity-leading and lagging strategies.
Sample question from this domain above: Q3
Assess the meaning of operations strategy and whether an organization has one that aligns with both business strategy and market requirements. Evaluate key elements of operations strategy including vision and objectives, the four stages model, and the five performance objectives of quality, speed, dependability, flexibility and cost. Assess the role of continuous improvement in operations strategy, understanding trade-offs between performance objectives and how to move toward the efficient frontier.
Sample question from this domain above: Q2
Evaluate the concept of strategic resource planning and control by understanding how customer needs translate into operational delivery, and the role of forecasting, capacity, resources, priorities, scheduling, monitoring and control. Assess key elements including loading, prioritisation, sequencing, scheduling, monitoring and control, and the decision mechanisms that drive the process. Contrast methods of monitoring and controlling operations including push and pull approaches, theory of constraints, MRP and MRP II, and web-integrated ERP systems.
Common questions about the exam itself
