CIPS L4M2 Exam - 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?

ACreate new specification to new supplier

BStandardise the specification

CCreate new specification to current supplier

DMake a call-off order to current supplier

Show Suggested 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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Laquita

4 months ago

A call-off order might be the quickest way to keep production going.

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Wilburn

4 months ago

Surprised they only have 3 months of stock for such a big shift!

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Teri

4 months ago

Standardizing the spec could slow things down, not sure that's the best move.

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Jerrod

4 months ago

I think creating a new spec for the current supplier makes the most sense.

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Lawrence

5 months ago

Looks like they need to act fast with only 3 months of stock!

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Chau

5 months ago

I practiced a similar question where prioritizing existing relationships was key. I wonder if option D would help us maintain production while we wait for the new component.

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Bettina

5 months ago

I feel like creating a new specification for the current supplier could help us get the right materials faster. Option C seems like a possibility, but I'm not confident.

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Alberto

5 months ago

I'm not entirely sure, but I remember something about standardizing specifications being important for efficiency. Could option B be the right choice?

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Ressie

5 months ago

I think we should focus on the current supplier since we have a limited time before production starts. Maybe option D makes the most sense?

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Chau

5 months ago

I'm feeling pretty confident about this one. The lead time and current stock levels give me a good idea of the right priority action to recommend.

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Sophia

5 months ago

Hmm, I'm a bit confused by the different options. I'll need to think through the implications of each one to figure out which is the best priority action for the company.

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German

5 months ago

This seems like a straightforward inventory management question. I'll need to carefully consider the lead time and current stock levels to determine the best priority action.

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Albina

6 months ago

Okay, I think I've got this. The key is to ensure they don't run out of stock before the new component is ready. I'll go with the option that minimizes the risk of stock-outs.

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Deonna

10 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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Blondell

9 months ago

Agreed, it's the most efficient way to manage our inventory and production schedule.

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Sanjuana

9 months ago

Sounds good, that way we can keep the production busy until the new component is ready.

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Gennie

9 months ago

Let's go with option D and place a call-off order to the current supplier.

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Julio

11 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

10 months ago

C) Create new specification to current supplier

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Claudio

10 months ago

B) Standardise the specification

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Jeannine

11 months ago

A) Create new specification to new supplier

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Shenika

11 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 months ago

Standardizing the specification could also streamline the process and help with inventory management.

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Magnolia

10 months 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

10 months ago

Yeah, creating a new specification for the current supplier would be more efficient.

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Adela

10 months ago

I agree, sticking with the current supplier seems like the safest option.

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Dannette

11 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

10 months ago

Yeah, it would save time and resources compared to creating a new specification for a new supplier.

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Jettie

11 months ago

I agree, standardizing the specification would definitely make things easier in the long run.

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Talia

11 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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