Testbank Chapter 1 GSCM

Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 1 Understanding the Supply Chain

1.1 True/False Questions

1) A supply chain could be more accurately described as a supply network or supply web.
Answer: TRUE
Diff: 2
Topic: 1.1 What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

2) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer
request.
Answer: TRUE
Diff: 2
Topic: 1.1 What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

3) A supply chain includes only the organizations directly involved in supplying components
needed for manufacturing.
Answer: FALSE
Diff: 2
Topic: 1.2 The Objective of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

4) The objective of every supply chain is to maximize the overall value generated.
Answer: TRUE
Diff: 1
Topic: 1.2 The Objective of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

5) The objective of the customer arrival process is to ensure that orders are quickly and
accurately entered and communicated to other affected supply chain processes.
Answer: FALSE
Diff: 2
Topic: 1.2 The Objective of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.
1
Copyright © 2016 Pearson Education, Ltd.

,6) The objective of customer order entry is to maintain a record of product receipt and complete
payment.
Answer: FALSE
Diff: 3
Topic: 1.2 The Objective of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

7) The difference between the value of the product and its price remains with the customer as
consumer surplus.
Answer: TRUE
Diff: 1
Topic: 1.2 The Objective of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain
decisions on the success of a firm.

8) The supply chain planning phase exceeds the supply chain design phase in duration.
Answer: FALSE
Diff: 2
Topic: 1.4 Decision Phases in a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.2: Identify the three key supply chain decision phases and explain the
significance of each one.

9) The goal during the supply chain operation phase is to exploit the reduction of uncertainty and
optimize performance.
Answer: TRUE
Diff: 2
Topic: 1.4 Decision Phases in a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.2: Identify the three key supply chain decision phases and explain the
significance of each one.

10) The replenishment cycle occurs at the retailer/distributor interface.
Answer: TRUE
Diff: 3
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.




2
Copyright © 2016 Pearson Education, Ltd.

, 11) The manufacturing cycle occurs at the distributor/manufacturer interface.
Answer: TRUE
Diff: 2
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.

12) The push/pull view of a supply chain holds that the processes in a supply chain are divided
into 2 categories depending on whether they are initiated in response to or in anticipation of
customer orders.
Answer: TRUE
Diff: 1
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.

13) The production scheduling process in the manufacturing cycle is similar to the order entry
process in the replenishment cycle.
Answer: TRUE
Diff: 3
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.

14) The cycle view of a supply chain holds that the processes in a supply chain are divided into 2
categories depending on whether they are initiated in response to or in anticipation of customer
orders.
Answer: FALSE
Diff: 2
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.

15) The procurement cycle occurs at the manufacturer/supplier interface.
Answer: TRUE
Diff: 1
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.

16) The cycle view of the supply chain is useful when considering operational decisions, because
it specifies the roles and responsibilities of each member of the supply chain.
Answer: TRUE
Diff: 2
Topic: 1.5 Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.3: Describe the cycle and push/pull views of a supply chain.
3
Copyright © 2016 Pearson Education, Ltd.