PRINCIPLES OF SUPPLY CHAIN
MANAGEMENT 5TH EDITION EXAMS SET
COMPLETE QUESTIONS AND ANSWERS
EXPERT VERIFIED
◉ Which of the following activities would fall under the foundational
element of operation? (Distribution network, Supplier management,
Third-party logistics services, Demand management)
Answer: Demand management
◉ One operational method for managing inventory is the
implementation of a software system which can be referred to as:
Answer: Material requirements planning (MRP)
◉ Which of the following is a reverse logistics activity?
Answer: Recycling products and components
◉ Which of the following statements is TRUE?
Answer: Strategic partnerships are seen as one of the foundations of
supply chain management.
,◉ Customer relationship management, distribution network,
transportation management, and service response logistics are all
important issues that are most closely related to:
Answer: Logistics
◉ According to the text, which of the following is considered a
current trend in supply chain management?
Answer: Increasing supply chain visibility
◉ An example of an internal or external event that causes a
disruption or failure of supply chain operations is:
Answer: COVID-19 Pandemic
◉ Which of the following can happen as a result of the bullwhip
effect?
Answer: Excess costs for each firm in a supply chain
◉ The following is an example of the bullwhip effect:
Answer: Nike includes safety stock of 5,000 units of shoestrings in
its demand forecast causing its shoestring supplier to increase their
normal output for Nike.
◉ Given the following make-buy information, what would be the
break-even point?
,Make opt ($6900, $5), Buy opt ($1500,$10)
Answer: 1,080 units
◉ The total cost of ownership for Supplier A is $3,360,000. The total
cost of ownership for Supplier B is $1,910,000. The total cost of
ownership for Supplier C is $3,230,000. Using Total Cost Analysis,
what supplier will be more cost-effective to use?
Answer: Supplier B
◉ When calculating Return on Investment, fixed assets include:
Answer: Equipment, Buildings, and Real Estate
◉ Benefits derived from implementing e-procurement systems
include all of the following EXCEPT:
Answer: Creates numerous additional job opportunities in the
purchasing department
◉ Which of the following is a reason small value purchases are
handled differently?
Answer: To control unnecessary administrative costs
◉ Which of the following illustrates Forward Vertical Integration?
Answer: Dell Computers buying retail computer stores to sell
computers to the public
, ◉ Which of the following is a reason that single sourcing is
considered risky/bad?
Answer: There could be supplier interruptions due to political
instability
◉ Which of the following statements is FALSE?
Answer: Centralized purchasing is where individual, local
purchasing departments, such as at the plant level, make their own
purchasing decisions.
◉ Which of the following is NOT a potential challenge for global
sourcing?
Answer: Reduction of international trade barriers
◉ According to the Buy American Act, which of the following does
the Buy American Act apply to?
Answer: All of the choices are correct (The materials to manufacture
the goods are available in the U.S./U.S. government purchasers must
purchase domestically produced goods/The procurement is
intended for public use within the U.S.)
◉ A company using a weighted criteria evaluation system has
established these 3 categories and the appropriate weight in
parentheses: Quality (0.25), Delivery (0.50), Cost (0.25). The scores
MANAGEMENT 5TH EDITION EXAMS SET
COMPLETE QUESTIONS AND ANSWERS
EXPERT VERIFIED
◉ Which of the following activities would fall under the foundational
element of operation? (Distribution network, Supplier management,
Third-party logistics services, Demand management)
Answer: Demand management
◉ One operational method for managing inventory is the
implementation of a software system which can be referred to as:
Answer: Material requirements planning (MRP)
◉ Which of the following is a reverse logistics activity?
Answer: Recycling products and components
◉ Which of the following statements is TRUE?
Answer: Strategic partnerships are seen as one of the foundations of
supply chain management.
,◉ Customer relationship management, distribution network,
transportation management, and service response logistics are all
important issues that are most closely related to:
Answer: Logistics
◉ According to the text, which of the following is considered a
current trend in supply chain management?
Answer: Increasing supply chain visibility
◉ An example of an internal or external event that causes a
disruption or failure of supply chain operations is:
Answer: COVID-19 Pandemic
◉ Which of the following can happen as a result of the bullwhip
effect?
Answer: Excess costs for each firm in a supply chain
◉ The following is an example of the bullwhip effect:
Answer: Nike includes safety stock of 5,000 units of shoestrings in
its demand forecast causing its shoestring supplier to increase their
normal output for Nike.
◉ Given the following make-buy information, what would be the
break-even point?
,Make opt ($6900, $5), Buy opt ($1500,$10)
Answer: 1,080 units
◉ The total cost of ownership for Supplier A is $3,360,000. The total
cost of ownership for Supplier B is $1,910,000. The total cost of
ownership for Supplier C is $3,230,000. Using Total Cost Analysis,
what supplier will be more cost-effective to use?
Answer: Supplier B
◉ When calculating Return on Investment, fixed assets include:
Answer: Equipment, Buildings, and Real Estate
◉ Benefits derived from implementing e-procurement systems
include all of the following EXCEPT:
Answer: Creates numerous additional job opportunities in the
purchasing department
◉ Which of the following is a reason small value purchases are
handled differently?
Answer: To control unnecessary administrative costs
◉ Which of the following illustrates Forward Vertical Integration?
Answer: Dell Computers buying retail computer stores to sell
computers to the public
, ◉ Which of the following is a reason that single sourcing is
considered risky/bad?
Answer: There could be supplier interruptions due to political
instability
◉ Which of the following statements is FALSE?
Answer: Centralized purchasing is where individual, local
purchasing departments, such as at the plant level, make their own
purchasing decisions.
◉ Which of the following is NOT a potential challenge for global
sourcing?
Answer: Reduction of international trade barriers
◉ According to the Buy American Act, which of the following does
the Buy American Act apply to?
Answer: All of the choices are correct (The materials to manufacture
the goods are available in the U.S./U.S. government purchasers must
purchase domestically produced goods/The procurement is
intended for public use within the U.S.)
◉ A company using a weighted criteria evaluation system has
established these 3 categories and the appropriate weight in
parentheses: Quality (0.25), Delivery (0.50), Cost (0.25). The scores
