TEST BANK
CH. 1—Introduction to Supply Chain Management
T/F
1) According to the_ textbook, the_ keys to successful supply chain management include trust and honest, accurate
communications between supply chain partners.
ANSWER: T PTS: 1 REF: Page#2-9
2) According to the_ textbook, rapidly changing communication technology makes the_ development of global
partnerships more difficult than in the_ past.
ANSWER: F PTS: 1 REF: Page#5
3) According to the_ textbook, supply chains include raw material suppliers, intermediate component manufacturers,
end-product manufacturers, wholesale distributors, and retailers.
ANSWER: T PTS: 1 REF: Page#6
4) According to the_ textbook, retail stores are considered the_ focal firms in modern supply chains.
ANSWER: F PTS: 1 REF: Page#6
5) Reverse logistics activities include the_ return of defective and damaged items to the_ manufacturer, and the_
recycling of used packaging.
ANSWER: T PTS: 1 REF: Page#6
6) Trucking companies, airfreight shipping companies, and information system providers can all be considered
service providers to the_ supply chain.
ANSWER: T PTS: 1 REF: Page#7
1
, TEST BANK
7) According to the_ textbook, a supply chain's end customers are the_ only true source of income for all supply
chain organizations.
ANSWER: T PTS: 1 REF: Page#7
8) Effective supply chain management relies on competitive bidding, corporate privacy, and contracts based on short-
term performance.
ANSWER: F PTS: 1 REF: Page#8
9) The_ bullwhip effect is the_ result of companies producing excessive defective products; defective items are
whipped back from the_ end customer toward the_ manufacturer of the_ defect.
ANSWER: F PTS: 1 REF: Page#11
10) According to the_ textbook, in the_ 1950's and 1960's, mass production techniques focused on creating supplier
partnerships, improving process design and flexibility, and improving product quality.
ANSWER: F PTS: 1 REF: Page#12
11) According to the_ textbook, third-party logistics providers (3LPs) do not offer assistance with helping products
clear customs.
ANSWER: F PTS: 1 REF: Page#14
12) According to the_ textbook, environmental and social impacts are considered outside of supply chain
management.
ANSWER: F PTS: 1 REF: Page#15
13) According to the_ textbook, 'integration' is one of the_ four supply chain elements.
ANSWER: T PTS: 1 REF: Page#15
14) ISO9000 is a standardized program for certifying suppliers.
2
, TEST BANK
ANSWER: T PTS: 1 REF: Page#16
15) The_ universally accepted definition of supply chain management is "the_ management and integration of the_
parties involved in producing the_ end items coveted by consumers."
ANSWER: F PTS: 1 REF: Page#17
16) The_ assembly or production of finished products, producing the_ right amount of product, and ensuring that
finished products meet specific quality, cost, and customer service requirements can all be considered
elements of operations.
ANSWER: T PTS: 1 REF: Page#17
17) Improved quality is one benefit of using a lean production system.
ANSWER: T PTS: 1 REF: Page#19
18) Successful supply chain integration occurs when supply chain participants realize that the_ needs and desires of
the_ end item manufacturer dictate the_ objectives and policies of all the_ other supply chain participants.
ANSWER: F PTS: 1 REF: Page#21-22
19) Trends in supply chain management include increasing inventory levels and considering the_ elimination of
logistics intensive online retailing.
ANSWER: F PTS: 1 REF: Page#22-27
20) Trends in supply chain management include increasing supply chain responsiveness and considering the_
negative environmental impacts of supply chains.
ANSWER: T PTS: 1 REF: Page#24
MULTIPLE CHOICE
3
, TEST BANK
1) Which of the_ following is an illustration of a company that has vertically integrated?
a. A computer manufacturer that acquires its computer components supplier
b. A computer manufacturer that acquires warehouses to aid in its product
distribution
c. A computer components supplier that begins to assemble computers for sale to
consumers
d. All of these
ANSWER: D PTS: 1 REF: Page#5
2) Successful modern supply chain management typically includes the_ practice of:
a. Keeping high inventories throughout the_ supply chain
b. Always purchasing materials with the_ lowest per unit cost
c. The_ sharing of information between supply chain partners
d. Leadership through the_ practice of issuing ultimatums to your supply chain
partners
ANSWER: C PTS: 1 REF: Page#5
3) According to the_ textbook, which of the_ following statements is TRUE? Consumers buy products based on a
combination of:
a. Cost, quality, manufacturer, and simplicity of use
b. Cost, quality, availability, and brand
c. Cost, quality, advertising, store preference, and appearance
d. Cost, quality, availability, maintainability, and reputation
ANSWER: D PTS: 1 REF: Page#6
4) Which of the_ following is a reverse logistics activity:
a. Recycling products and components
b. Delivering finished goods to your customer
c. Developing a collaborative relationship with your supplier
4
CH. 1—Introduction to Supply Chain Management
T/F
1) According to the_ textbook, the_ keys to successful supply chain management include trust and honest, accurate
communications between supply chain partners.
ANSWER: T PTS: 1 REF: Page#2-9
2) According to the_ textbook, rapidly changing communication technology makes the_ development of global
partnerships more difficult than in the_ past.
ANSWER: F PTS: 1 REF: Page#5
3) According to the_ textbook, supply chains include raw material suppliers, intermediate component manufacturers,
end-product manufacturers, wholesale distributors, and retailers.
ANSWER: T PTS: 1 REF: Page#6
4) According to the_ textbook, retail stores are considered the_ focal firms in modern supply chains.
ANSWER: F PTS: 1 REF: Page#6
5) Reverse logistics activities include the_ return of defective and damaged items to the_ manufacturer, and the_
recycling of used packaging.
ANSWER: T PTS: 1 REF: Page#6
6) Trucking companies, airfreight shipping companies, and information system providers can all be considered
service providers to the_ supply chain.
ANSWER: T PTS: 1 REF: Page#7
1
, TEST BANK
7) According to the_ textbook, a supply chain's end customers are the_ only true source of income for all supply
chain organizations.
ANSWER: T PTS: 1 REF: Page#7
8) Effective supply chain management relies on competitive bidding, corporate privacy, and contracts based on short-
term performance.
ANSWER: F PTS: 1 REF: Page#8
9) The_ bullwhip effect is the_ result of companies producing excessive defective products; defective items are
whipped back from the_ end customer toward the_ manufacturer of the_ defect.
ANSWER: F PTS: 1 REF: Page#11
10) According to the_ textbook, in the_ 1950's and 1960's, mass production techniques focused on creating supplier
partnerships, improving process design and flexibility, and improving product quality.
ANSWER: F PTS: 1 REF: Page#12
11) According to the_ textbook, third-party logistics providers (3LPs) do not offer assistance with helping products
clear customs.
ANSWER: F PTS: 1 REF: Page#14
12) According to the_ textbook, environmental and social impacts are considered outside of supply chain
management.
ANSWER: F PTS: 1 REF: Page#15
13) According to the_ textbook, 'integration' is one of the_ four supply chain elements.
ANSWER: T PTS: 1 REF: Page#15
14) ISO9000 is a standardized program for certifying suppliers.
2
, TEST BANK
ANSWER: T PTS: 1 REF: Page#16
15) The_ universally accepted definition of supply chain management is "the_ management and integration of the_
parties involved in producing the_ end items coveted by consumers."
ANSWER: F PTS: 1 REF: Page#17
16) The_ assembly or production of finished products, producing the_ right amount of product, and ensuring that
finished products meet specific quality, cost, and customer service requirements can all be considered
elements of operations.
ANSWER: T PTS: 1 REF: Page#17
17) Improved quality is one benefit of using a lean production system.
ANSWER: T PTS: 1 REF: Page#19
18) Successful supply chain integration occurs when supply chain participants realize that the_ needs and desires of
the_ end item manufacturer dictate the_ objectives and policies of all the_ other supply chain participants.
ANSWER: F PTS: 1 REF: Page#21-22
19) Trends in supply chain management include increasing inventory levels and considering the_ elimination of
logistics intensive online retailing.
ANSWER: F PTS: 1 REF: Page#22-27
20) Trends in supply chain management include increasing supply chain responsiveness and considering the_
negative environmental impacts of supply chains.
ANSWER: T PTS: 1 REF: Page#24
MULTIPLE CHOICE
3
, TEST BANK
1) Which of the_ following is an illustration of a company that has vertically integrated?
a. A computer manufacturer that acquires its computer components supplier
b. A computer manufacturer that acquires warehouses to aid in its product
distribution
c. A computer components supplier that begins to assemble computers for sale to
consumers
d. All of these
ANSWER: D PTS: 1 REF: Page#5
2) Successful modern supply chain management typically includes the_ practice of:
a. Keeping high inventories throughout the_ supply chain
b. Always purchasing materials with the_ lowest per unit cost
c. The_ sharing of information between supply chain partners
d. Leadership through the_ practice of issuing ultimatums to your supply chain
partners
ANSWER: C PTS: 1 REF: Page#5
3) According to the_ textbook, which of the_ following statements is TRUE? Consumers buy products based on a
combination of:
a. Cost, quality, manufacturer, and simplicity of use
b. Cost, quality, availability, and brand
c. Cost, quality, advertising, store preference, and appearance
d. Cost, quality, availability, maintainability, and reputation
ANSWER: D PTS: 1 REF: Page#6
4) Which of the_ following is a reverse logistics activity:
a. Recycling products and components
b. Delivering finished goods to your customer
c. Developing a collaborative relationship with your supplier
4
