ChapterT1TTestTBank
CHAPTERT 1T TESTT QUESTIONS
True-False
1. TheTfirstTdecadeTofTtheTtwenty-
firstTcenturyTwasTaTperiodTofTrapidTchangeTforTorganizations,T especiallyTbusinesses.
ANSWER:TTrue,TPageT5
2. ATkeyT elementT inTWal-
Mart’sT abilityT toT discountT brandT nameT productsT wasT anT understandingTofTtheTcriticalityTofTeffici
encyTinTitsTlogisticsTandTsupplyTchainTsystem.
ANSWER:TTrue,TPageT6
3. GlobalizationT hasT hadTlittleT effectT onT consumers.
ANSWER:TFalse,TPageT7
4. SupplyTandTdemandThasTbecomeTlessTvolatileTasTmanagersTbecomeTmoreTadeptTatTcontrollingT
theTelements.
ANSWER:TFalse,TPageT8
5. OutsourcingTisTaTfairlyTnewTconcept.
ANSWER:TFalse,TPageT9
6. SABTshouldTexamineTtheirToff-
shoreTpurchasingTpolicy,TevenTthoughTtheTproductsTareTsourcedTfromTtheTU.S.
ANSWER:TTrue,TPageT9
7. ItTisTexpectedTthatTsomeTorTallTofTtheTBRICTcountriesT(Brazil,TRussia,TIndiaT&Tchina)TwillTrepl
aceTtheTso-
calledTVISTATcountriesT(Vietnam,TIndonesia,TS.TAfrica,TTurkeyTandTArgentina)TasTlowTcostTp
roducersTofTvariousTproductsTandTservices.
ANSWER:T False,TPageT9
8. TheTworldTeconomyTstillTfavorsTtheTUnitedTStatesTandTEuropeanTcountries,TevenTthoughTChin
aTandTIndiaTcanTparticipateTinTtheTglobalTeconomyTmuchTmoreTreadily.
ANSWER:TFalse,TPageT10
9. ItTisTpredictedTthatTsocialTnetworksTsuchTasTFacebookTandTTwitterTwillTinfluenceTsupplyTchain
sTbecauseTofTtheirTimpactTonTcustomerTdemandTandTtheTspeedTofTinformationTtransfers.
ANSWER:TTrue,TPageT10
10. TheTU.S.TtransportationTsystemTwasTderegulatedTinTtheT1930sTandT1940sTinTresponseTtoTecono
micTconditionsTandTWorldTWarT2
ANSWER:TFalse,TPageT12
11. EvenTthoughTthereTareTreferencesTtoTsupplyTchainTmanagementTinTtheT1980s,TSCMTdidTnotTca
ptureTtheTattentionTofTsenior-levelTmanagementTuntilTtheT1990s.
ANSWER:TTrue,TPageT15
12. SupplyTchainTmanagersTnoTlongerTneedTtoTworryTaboutTsuboptimizationTinTlightTofTtoday’sTtec
hnology.
ANSWER:TFalse,TPageT19
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,CoyleTSupplyTChainTManagement:TATLogisticsTPerspective,T9thTEdition
ChapterT1TTestTBank
MultipleTChoice
13. MostTretailersTareTessentiallyTsupplyTchainTcompaniesTsince
A.T theyTdominateTtheTconsumerTmarket.
b. ownTtheirTwarehousesTandTtrucks.
c. theyTbuyTproductsTproducedTbyTothers.
d. engageTinToff-shoreTsourcing.
ANSWER:Tc,TPageT6
14. WhichTofTtheTbelowTisTnotToneTofTtheTexternalTforcesTdrivingTtheTrateTofTchangeT
andTshapingTourTeconomicTandTpoliticalTlandscape?
a. GovernmentTpolicy
b. Technology
c. EnvironmentalTconcerns
d. Globalization
ANSWER:Tc,TPageT7
15. OutsourcingT involves
a. movingT companyT facilitiesTawayT fromT theT homeT office.
b. hiringT foreignT nationalsT toTmanageT partsT ofT theT business.
c. obtainingTmaterials,Tparts,TandTproductsTfromTotherTcompanies.
d. buildingTaTfactoryTinTanotherTcountry.
ANSWER:Tc,TPageT9
16. SomeTindividualsTdescribeTtheTcurrentTconsumerTasTtheT“clickThere”Tgeneration
Tbecause
a. weTallThaveTInternetTaccess.
b. weTnoTlongerTwaitTforTinformationTtoTbeT“pushedTout”TtoTus.
c. weTbuyTsoTmuchTmerchandiseTonTline.
d. weTtakeTlittleTtimeTtoTmakeTpurchasingTdecisions.
ANSWER:Tb,TPageT10
17. TheTdemographicsTofTourTsocietyThasTchangedTbecause
a. theT“BabyTBoom”TgenerationTisTnowTturningT60.
b. ofTtheTincreaseTinTtwo-careerTfamiliesTandTsingle-parentThouseholds.
c. ofTimmigration.
d. birthTratesThaveTchanged.
ANSWER:Tb,TPageT12
18. TheT SupplyT ChainT Concept
a. isT veryT newT andT consideredT cuttingTedgeT technology.
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, CoyleTSupplyTChainTManagement:TATLogisticsTPerspective,T9thTEdition
ChapterT1TTestTBank
b. isThighlyTdependentTofTcomputerization.
c. isTnotTalwaysTwellTunderstoodTbyTseniorTmanagers.
d. developedTfromTtheTpreviousTPhysicalTDistributionTconcept.
ANSWER:Td,TPageT15
19. Logistics,TinTitsTsimplestTform,
a. isTaTmilitaryTterm,TasTitTwasTdevelopedToriginallyTtoTsupplyTtheTbattlefield.
b. combinesTinboundTlogisticsTwithTtheToutboundTlogisticsTofTphysicalTdistribution.
c. isTanotherTtermTforTtransportationTmanagement.
d. doesTnotTinvolveTcustomerTserviceTorTotherTrelatedTfunctions.
ANSWER:T b,T PageT 16
20. OneTofTtheTmajorTchallengesTofTsupplyTchainTmanagementTis
a. forwardTbuying.
b. maintainingTtheTvisibilityTofTinventory.
c. buildingTsafety-stockTinventory.
d. PushingTinventoryTbackTtoTvendors.
ANSWER:Tb,TPage18
21. WhichTofTtheseTflowsTonlyToneTwayTasTillustratedTinTFigureT1-4?
a. information
b. productsTandTservices
c. financials
d. NoneTofTtheseTanswers
ANSWER:Td,TPageT18
22. Traditionally,T informationT hasT beenT viewedT asT flowingT inT theT oppositeT directionT of
Tproducts,TthatTis,TfromTtheTmarket/customerTbackTtoTtheTwholesalers,Tmanufacturers,TandTv
endors.
a. ThisTisTstillTtrueTandThasTnotTchanged.
b. ComputerizationThasTgreatlyTincreasedTtheTflowTofTinformationTfromTtheTsource.
c. TheT“BigTBox”TstoresThaveTdevelopedTtheirTownTsources.
d. NoneTofTtheseTanswers
ANSWER:Td,TPageT21
23. OneTofTtheTfourTsupplyTchainTflowsTinTFigureT1T–
T8TthatThasTreceivedTincreasedTattentionTfromTsupplyTchainTmanagersTdueTtoTtheTgrowth
TinTtechnologyTis:
a. ProductTflow
b. InformationTflow
c. CashTflow
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