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CIPS Exam L4M2 Topic 10 Question 44 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 44
Topic #: 10
[All L4M2 Questions]

GSC Ltd is a manufacturer of car parts. To accommodate growing demands of electric cars, the company is developing a new component which requires different type of steel. The project team estimates that the component will be ready for production in 1.5 years. Until then, they need to keep the production busy.

After checking the inventory records, the production team sees that the company has 3 months of stock. The lead time for each batch is two months. Which of the following should be a priority ac-tion of the company?

Show Suggested Answer Hide Answer
Suggested Answer: C

Writing a specification and then procuring and using the product or service has a number of stages. The further on in the process you are, the less potential there is for cost reductions. Therefore, opportunities for cost reduction will be greatest in the two first stages: planning stage and pre-design stage.

LO 3, AC 3.1


by Brinda at Sep 14, 2024, 11:44 AM

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Deonna
1 months ago
Option D, for 'Don't worry, be happy!' The current supplier has you covered - just place a call-off order and let the good times roll. Hakuna matata, my friends.
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Julio
2 months ago
Wait, you're telling me they've only got 3 months of stock and a 2-month lead time? Yikes, better fire up the ol' DeLorean and go back in time to order more parts!
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Bernardo
21 days ago
C) Create new specification to current supplier
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Claudio
1 months ago
B) Standardise the specification
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Jeannine
1 months ago
A) Create new specification to new supplier
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Shenika
2 months ago
A new supplier, huh? Sounds like a recipe for disaster. Unless you've got a lot of time on your hands, I'd just stick with the current guys. Option C is the way to go.
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Anjelica
10 days ago
Standardizing the specification could also streamline the process and help with inventory management.
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Magnolia
14 days ago
I think making a call-off order to the current supplier would help maintain production until the new component is ready.
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Dorinda
20 days ago
Yeah, creating a new specification for the current supplier would be more efficient.
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Adela
21 days ago
I agree, sticking with the current supplier seems like the safest option.
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Dannette
2 months ago
I'm leaning towards B - standardizing the specification. That way, you can have some flexibility when the new component is ready to go into production. Less hassle than starting from scratch with a new supplier.
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Kati
1 months ago
Yeah, it would save time and resources compared to creating a new specification for a new supplier.
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Jettie
1 months ago
I agree, standardizing the specification would definitely make things easier in the long run.
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Talia
2 months ago
Option D seems like the obvious choice. Why create a new spec when you can just place a call-off order with the current supplier? Keeps things simple and gets the job done.
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Aileen
2 months ago
I agree with Tony, making a call-off order seems like the most efficient option given the lead time for each batch.
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Tony
2 months ago
I disagree, I believe we should make a call-off order to the current supplier to ensure we have enough stock.
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Mee
2 months ago
I think we should create a new specification for the new supplier.
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