Strategic Supply Network Design
L6M9 learning outcome 1: understand the strategic nature and influence of supply-network design.
How to study for CIPS Level 6
Complete the four mandatory constructed-response modules, choose three objective-response electives and prepare L6M4 last against its current pre-released theme.
Core concepts
Concept 1
Network design covers terminology, structures, topology, purpose, position and logistics impact.
Exam cue: Map nodes, flows, ownership and capacity before redesigning the network.
Concept 2
Disintermediation, e-commerce, vertical integration, outsourcing and offshoring reconfigure networks.
Exam cue: Match capacity posture to demand uncertainty, service and risk.
Concept 3
Optimum, lag, lead and inventory-smoothing strategies manage capacity differently.
Concept 4
Break-even analysis supports evidence-based capacity expansion decisions.
Risk pitfalls and guardrails
Treating a supply network as a linear list of suppliers.
Guardrail: Do not rely on a familiar model by recognition alone; test context, assumptions, evidence and implementation consequences.
Expanding capacity without demand, cost and break-even evidence.
Guardrail: Do not rely on a familiar model by recognition alone; test context, assumptions, evidence and implementation consequences.
Memory anchors
Network map
Node, flow, ownership, dependency and capacity.
Reconfiguration
Integrate, outsource, offshore or remove intermediaries.
Capacity posture
Lead, lag, track or smooth.
Expansion test
Demand, fixed cost, variable cost, contribution and break-even.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What does a supply-network node represent?
A retailer removes wholesalers and buys directly. What change is this?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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