Supply Chain Management, 5e (Chopra/Meindl)
Chapter 3 Supply Chain Drivers and Metrics
True/False
1. The major drivers of supply chain performance are facilities, inventory,
transportation, and information.
Answer: True
Difficulty: Moderate
2. The major drivers of supply chain performance are customers, facilities,
inventory, transportation, and information.
Answer: False
Difficulty: Moderate
3. The two major types of facilities are production sites and storage sites.
Answer: True
Difficulty: Moderate
4. The two major types of facilities are distribution sites and storage sites.
Answer: False
Difficulty: Moderate
5. Inventory is an important supply chain driver because changing inventory policies
can dramatically alter the supply chain’s efficiency and responsiveness.
Answer: True
Difficulty: Moderate
6. Information is potentially the biggest driver of performance in the supply chain as
it directly affects each of the other drivers.
Answer: True
Difficulty: Easy
7. Information is potentially the biggest driver of performance in the supply chain
even though it has little impact on each of the other drivers.
Answer: False
Difficulty: Easy
8. A facility with little excess capacity will likely be more efficient per unit of
product it produces than one with a lot of unused capacity.
Answer: True
Difficulty: Easy
9. A facility with little excess capacity will likely be no more or less efficient per
unit of product it produces than one with a lot of unused capacity.
Answer: False
, Difficulty: Easy
10. The high utilization facility will have difficulty responding to demand
fluctuations.
Answer: True
Difficulty: Easy
11. The high utilization facility will have no more difficulty responding to demand
fluctuations than one with a lot of unused capacity.
Answer: False
Difficulty: Easy
12. Stock keeping unit (SKU) storage is the warehousing methodology that uses a
traditional warehouse to store all of one type of product together.
Answer: True
Difficulty: Moderate
13. Warehouse unit storage is the warehousing methodology that uses a traditional
warehouse to store all of one type of product together.
Answer: False
Difficulty: Moderate
14. The components of inventory decisions include cycle inventory, safety inventory,
seasonal inventory, and sourcing.
Answer: True
Difficulty: Easy
15. The components of inventory decisions include capacity, cycle inventory, safety
inventory, seasonal inventory, and sourcing.
Answer: False
Difficulty: Easy
16. Cycle inventory is inventory that is built up to counter predictable variability in
demand.
Answer: False
Difficulty: Easy
17. Seasonal inventory is inventory that is built up to counter predictable variability in
demand.
Answer: True
Difficulty: Moderate
18. Companies using seasonal inventory will build up inventory in periods of low
demand and store it for periods of high demand when they will not have the
capacity to produce all that is demanded.
Answer: True
Chapter 3 Supply Chain Drivers and Metrics
True/False
1. The major drivers of supply chain performance are facilities, inventory,
transportation, and information.
Answer: True
Difficulty: Moderate
2. The major drivers of supply chain performance are customers, facilities,
inventory, transportation, and information.
Answer: False
Difficulty: Moderate
3. The two major types of facilities are production sites and storage sites.
Answer: True
Difficulty: Moderate
4. The two major types of facilities are distribution sites and storage sites.
Answer: False
Difficulty: Moderate
5. Inventory is an important supply chain driver because changing inventory policies
can dramatically alter the supply chain’s efficiency and responsiveness.
Answer: True
Difficulty: Moderate
6. Information is potentially the biggest driver of performance in the supply chain as
it directly affects each of the other drivers.
Answer: True
Difficulty: Easy
7. Information is potentially the biggest driver of performance in the supply chain
even though it has little impact on each of the other drivers.
Answer: False
Difficulty: Easy
8. A facility with little excess capacity will likely be more efficient per unit of
product it produces than one with a lot of unused capacity.
Answer: True
Difficulty: Easy
9. A facility with little excess capacity will likely be no more or less efficient per
unit of product it produces than one with a lot of unused capacity.
Answer: False
, Difficulty: Easy
10. The high utilization facility will have difficulty responding to demand
fluctuations.
Answer: True
Difficulty: Easy
11. The high utilization facility will have no more difficulty responding to demand
fluctuations than one with a lot of unused capacity.
Answer: False
Difficulty: Easy
12. Stock keeping unit (SKU) storage is the warehousing methodology that uses a
traditional warehouse to store all of one type of product together.
Answer: True
Difficulty: Moderate
13. Warehouse unit storage is the warehousing methodology that uses a traditional
warehouse to store all of one type of product together.
Answer: False
Difficulty: Moderate
14. The components of inventory decisions include cycle inventory, safety inventory,
seasonal inventory, and sourcing.
Answer: True
Difficulty: Easy
15. The components of inventory decisions include capacity, cycle inventory, safety
inventory, seasonal inventory, and sourcing.
Answer: False
Difficulty: Easy
16. Cycle inventory is inventory that is built up to counter predictable variability in
demand.
Answer: False
Difficulty: Easy
17. Seasonal inventory is inventory that is built up to counter predictable variability in
demand.
Answer: True
Difficulty: Moderate
18. Companies using seasonal inventory will build up inventory in periods of low
demand and store it for periods of high demand when they will not have the
capacity to produce all that is demanded.
Answer: True
