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Latest L6M3 Exam Practice Questions

The practice questions for L6M3 exam was last updated on 2025-11-01 .

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Question#1

Describe 4 internal and 4 external risks that can affect the supply chain.
How should a supply chain manager deal with risks?

A. Supply chains operate within complex global networks and are exposed to a wide range of internal and external risks that can disrupt operations, increase costs, and damage reputation.
A strategic supply chain manager must identify, assess, and mitigate these risks proactively to ensure resilience and continuity.

Question#2

What is market segmentation? Describe TWO methods that can be used to segment customers.

A. Market segmentation is the process of dividing a broad market into smaller, more manageable groups of consumers who share similar characteristics, needs, or behaviours.
The purpose of segmentation is to enable an organisation to tailor its marketing, product development, and supply chain strategies to meet the specific needs of different customer groups, rather than applying a single approach to the entire market.
By identifying and targeting distinct customer segments, organisations can allocate resources more effectively, improve customer satisfaction, and achieve a stronger competitive advantage.

Question#3

The CEO of XYZ Ltd is looking to make an important change to the company. He plans to take the company from a paper-based records system to an electronic records system, and introduce an MRP
system. The CEO is looking for a ‘change agent’ within the company to implement the change. Evaluate the role that the ‘change agent’ will inhabit and explain how the ‘change agent’ can gauge acceptance of this change.

A. A change agent is an individual who is responsible for driving, facilitating, and managing organisational change.
In this case, the change agent at XYZ Ltd will lead the transformation from a paper-based system to an electronic records system supported by a Material Requirements Planning (MRP) system.
The role requires strong leadership, communication, analytical, and interpersonal skills, as it involves influencing people, aligning systems, and ensuring that the new technology is successfully adopted across the organisation.

Question#4

What is meant by measuring supply chain performance via KPIs? Discuss three approaches to using KPIs in supply chain performance management.

A. Key Performance Indicators (KPIs) are quantifiable metrics used to measure the efficiency, effectiveness, and strategic alignment of supply chain activities.
They provide objective evidence of how well supply chain processes are performing in relation to organisational goals such as cost reduction, customer service, sustainability, and responsiveness.
Measuring supply chain performance through KPIs enables managers to monitor progress, identify bottlenecks, drive continuous improvement, and support decision-making.
In essence, KPIs transform data into actionable insights, ensuring that the supply chain contributes directly to business success.

Question#5

Describe seven wastes that can be found in the supply chain and explain how a company can eliminate wastes.

A. In supply chain management, waste refers to any activity or resource that does not add value to the product or service from the customer’s perspective.
The concept originates from the Lean philosophy (specifically the Toyota Production System) and identifies seven classic types of waste, known in Japanese as “Muda.”
Eliminating waste is essential for achieving efficiency, reducing costs, improving quality, and enhancing overall value creation in the supply chain.

Exam Code: L6M3Q & A: 30 Q&AsUpdated: 2025-11-01

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