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CIPS L6M9 Exam Questions
- Topic 1: Understand and apply leadership skills and behaviors appropriate for strategically improving the procurement and supply chain function: This section of the exam measures the skills of Supply Chain Managers and covers understanding leadership behaviors that enhance procurement processes. It assesses how to strategically improve supply chain functions, focusing on a key skill like "Strategic Decision Making".
- Topic 2: Understand operations strategy and its contribution to overall business success: Targeting Operations Directors, this section evaluates understanding of operations strategy's impact on organizations, including aligning with business goals, market requirements, and resource management.
- Topic 3: Assess the strategic value of resource planning and control: This part targets Resource Planners, focusing on evaluating strategic resource planning concepts such as forecasting, scheduling, monitoring, and controlling resources effectively within the operational framework.
Free CIPS L6M9 Exam Actual Questions
Note: Premium Questions for L6M9 were last updated On Feb. 23, 2026 (see below)
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.
Greg needs to know his fixed costs, variable costs, and price per car wash to 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
The break-even point is when revenue = costs, which means washing 20 cars per day (10 20 = 200 revenue, covering fixed and variable costs).
Number of customers (C) is incorrect, as this is calculated from the break-even formula, not an input.
Number of employees (E) is incorrect, as it is not a direct factor in the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)
Andrea is the Chief Financial Officer at Big Corporation and is completing a Variance Analysis. She has reviewed the production costs of creating item B, and this month's costs show a variance to budget of -200. What does this mean?
A negative variance to budget means that the company spent 200 less than expected, which is a positive outcome. While it may seem counterintuitive, a negative variance in this context indicates cost savings rather than overspending. Option D is incorrect because the organisation has saved 200, not gained it. (See p.198)
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?
While organisations generally try to fulfil customer demand, there are times when they strategically choose not to. A common reason is maintaining a premium image---limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
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 pricing mechanism is being used with supplier Y?
Indexation is the correct pricing mechanism because the price is adjusted based on CPI (Consumer Price Index), which is a form of indexed pricing. This ensures that prices fluctuate in response to inflation or other economic indicators. (See LO 3.3)
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