1|Page
Solution Manual for Supply Chain Management: Strategy,
Planning, and Operation Newest Exam Preparation With
Complete Questions And Correct Answers With Rationales
Already Graded A+ Brand New Version!!
1. According to Chopra and Meindl, what is the primary purpose of any
supply chain?
A) To maximize shareholder wealth
B) To serve the customer's needs and generate surplus
C) To minimize the cost of goods sold
D) To streamline internal operations
Answer: B
Explanation: The textbook defines the objective of a supply chain as
maximizing the overall value generated. This value, or surplus, is the
difference between what the final customer is willing to pay and the
total cost incurred by the supply chain to fulfill their needs. While
profitability is a key outcome, it is derived from effectively serving the
customer. The primary purpose is to satisfy customer needs efficiently,
creating a surplus for the chain to share.
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2. The objective of every supply chain should be to maximize the overall
value generated, which is defined as:
A) The total profits of the manufacturer
B) The difference between what the customer values and the cost
incurred by the supply chain to fulfill that need
C) The lowest possible cost of production
D) The total revenue generated
Answer: B
Explanation: The text frames the supply chain's objective around a value
chain concept. Value is not just about cost or revenue in isolation, but
the surplus created. This surplus is the net benefit to the customer and
the chain, calculated as the customer's perceived value (which
translates to the maximum price they are willing to pay) minus the total
supply chain cost. The goal is to maximize this surplus.
3. The decision phases in a supply chain, in order from the longest to
the shortest time horizon, are:
A) Operational, Planning, Strategic
B) Strategic, Operational, Planning
C) Strategic, Planning, Operational
D) Planning, Strategic, Operational
Answer: C
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Explanation: The three key decision phases are strategic, planning, and
operational. Strategic decisions have a multi-year horizon and involve
the long-term structure of the chain (e.g., facility location). Planning
decisions cover a quarterly to yearly horizon and involve aggregate
decisions (e.g., production plans). Operational decisions are daily or
weekly and involve executing specific customer orders.
4. The cycle view of a supply chain holds that processes are divided into
a series of activities performed between the stages of a supply chain.
These cycles occur at the:
A) Supplier, Manufacturer, Distributor, Retailer, and Customer
B) Procurement, Manufacturing, Replenishment, and Order Fulfillment
C) Product Development, Marketing, Sales, and Service
D) Inbound, Outbound, and Reverse Logistics
Answer: A
Explanation: The cycle view, a crucial concept in the book, breaks down
the supply chain into distinct stages. The typical cycle is Customer Order
Cycle (Customer to Retailer), Replenishment Cycle (Retailer to
Distributor), Manufacturing Cycle (Distributor to Manufacturer), and
Procurement Cycle (Manufacturer to Supplier). This helps in analyzing
the interconnections and processes between each stage.
5. The push/pull view of a supply chain categorizes processes based on
whether they are initiated in response to a customer order or in
anticipation of a customer order. Pull processes are:
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A) Executed in anticipation of known customer demand
B) Initiated by the customer's order
C) More efficient than push processes
D) Always more responsive than push processes
Answer: B
Explanation: In the push/pull view, pull processes are reactive and are
executed only when a customer order is received. This makes them
more responsive to actual demand variability. Push processes are
proactive and are executed in anticipation of future demand, allowing
for economies of scale and better capacity utilization.
6. Which of the following is NOT typically considered a key macro
process in Supply Chain Management as defined by the text?
A) Supplier Relationship Management (SRM)
B) Internal Supply Chain Management (ISCM)
C) Customer Relationship Management (CRM)
D) Product Lifecycle Management (PLM)
Answer: D
Explanation: The text identifies three key macro processes that are
critical for successful supply chain management: CRM, ISCM, and SRM.
CRM focuses on managing relationships with customers to generate
demand. ISCM focuses on managing the internal flow of materials and
information from suppliers to customers. SRM focuses on managing
Solution Manual for Supply Chain Management: Strategy,
Planning, and Operation Newest Exam Preparation With
Complete Questions And Correct Answers With Rationales
Already Graded A+ Brand New Version!!
1. According to Chopra and Meindl, what is the primary purpose of any
supply chain?
A) To maximize shareholder wealth
B) To serve the customer's needs and generate surplus
C) To minimize the cost of goods sold
D) To streamline internal operations
Answer: B
Explanation: The textbook defines the objective of a supply chain as
maximizing the overall value generated. This value, or surplus, is the
difference between what the final customer is willing to pay and the
total cost incurred by the supply chain to fulfill their needs. While
profitability is a key outcome, it is derived from effectively serving the
customer. The primary purpose is to satisfy customer needs efficiently,
creating a surplus for the chain to share.
,2|Page
2. The objective of every supply chain should be to maximize the overall
value generated, which is defined as:
A) The total profits of the manufacturer
B) The difference between what the customer values and the cost
incurred by the supply chain to fulfill that need
C) The lowest possible cost of production
D) The total revenue generated
Answer: B
Explanation: The text frames the supply chain's objective around a value
chain concept. Value is not just about cost or revenue in isolation, but
the surplus created. This surplus is the net benefit to the customer and
the chain, calculated as the customer's perceived value (which
translates to the maximum price they are willing to pay) minus the total
supply chain cost. The goal is to maximize this surplus.
3. The decision phases in a supply chain, in order from the longest to
the shortest time horizon, are:
A) Operational, Planning, Strategic
B) Strategic, Operational, Planning
C) Strategic, Planning, Operational
D) Planning, Strategic, Operational
Answer: C
,3|Page
Explanation: The three key decision phases are strategic, planning, and
operational. Strategic decisions have a multi-year horizon and involve
the long-term structure of the chain (e.g., facility location). Planning
decisions cover a quarterly to yearly horizon and involve aggregate
decisions (e.g., production plans). Operational decisions are daily or
weekly and involve executing specific customer orders.
4. The cycle view of a supply chain holds that processes are divided into
a series of activities performed between the stages of a supply chain.
These cycles occur at the:
A) Supplier, Manufacturer, Distributor, Retailer, and Customer
B) Procurement, Manufacturing, Replenishment, and Order Fulfillment
C) Product Development, Marketing, Sales, and Service
D) Inbound, Outbound, and Reverse Logistics
Answer: A
Explanation: The cycle view, a crucial concept in the book, breaks down
the supply chain into distinct stages. The typical cycle is Customer Order
Cycle (Customer to Retailer), Replenishment Cycle (Retailer to
Distributor), Manufacturing Cycle (Distributor to Manufacturer), and
Procurement Cycle (Manufacturer to Supplier). This helps in analyzing
the interconnections and processes between each stage.
5. The push/pull view of a supply chain categorizes processes based on
whether they are initiated in response to a customer order or in
anticipation of a customer order. Pull processes are:
, 4|Page
A) Executed in anticipation of known customer demand
B) Initiated by the customer's order
C) More efficient than push processes
D) Always more responsive than push processes
Answer: B
Explanation: In the push/pull view, pull processes are reactive and are
executed only when a customer order is received. This makes them
more responsive to actual demand variability. Push processes are
proactive and are executed in anticipation of future demand, allowing
for economies of scale and better capacity utilization.
6. Which of the following is NOT typically considered a key macro
process in Supply Chain Management as defined by the text?
A) Supplier Relationship Management (SRM)
B) Internal Supply Chain Management (ISCM)
C) Customer Relationship Management (CRM)
D) Product Lifecycle Management (PLM)
Answer: D
Explanation: The text identifies three key macro processes that are
critical for successful supply chain management: CRM, ISCM, and SRM.
CRM focuses on managing relationships with customers to generate
demand. ISCM focuses on managing the internal flow of materials and
information from suppliers to customers. SRM focuses on managing
