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Answer : C

The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137)

Answer : C

This is an asymmetric relationship, meaning it is one-sided---one company has more power in the supply relationship.

Asymmetric supply networks occur when one party is dependent on the other (e.g., XYZ Ltd relies on ABC Ltd for rare materials).

Symmetric networks involve mutual negotiation and equal dependence.

Since XYZ Ltd must accept whatever ABC Ltd supplies, the relationship is asymmetric. (LO 1.1, See p.4)

Answer : A, B

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)

Answer : B, C, D

The Theory of Constraints (TOC) includes the Drum, Buffer, and Rope approach. This method helps manage constraints in production by synchronising workflow. The Drum sets the pace, the Buffer protects against variability, and the Rope ensures efficient scheduling. Boat and safe harbour are not part of TOC. (See p.204)

For further reading on Drum-Buffer-Rope, refer to this resource: Theory of Constraints - Fortelabs

For further reading on Drum-Buffer-Rope, refer to this resource: Theory of Constraints - Fortelabs

Answer : A

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)