Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
1-7
,Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
CHAPTER g t 1 g t TEST g t QUESTIONS
True-False
1. The g t first gtdecade gtof g t the gttwenty-first gtcentury gtwas gta g t period gtof g t rapid gtchange gtfor
gtorganizations, gtespecially gtbusinesses.
ANSWER: gtTrue, gt Page gt 5
2. A g t key gtelement gtin g t Wal-Mart’s gtability g t to g t discount gtbrand gtname gtproducts gtwas gtan
g t understanding gtof gtthe gtcriticality gtof gtefficiency gtin gtits gtlogistics gtand gtsupply gtchain gtsystem.
ANSWER: gtTrue, gt Page gt 6
3. Globalization gthas g t had gtlittle g t effect gt on g t consumers.
ANSWER: gtFalse, gt Page gt7
4. Supply gtand gtdemand gthas gtbecome gtless gtvolatile gtas gtmanagers gtbecome gtmore gtadept gtat
gtcontrolling gtthe gtelements.
ANSWER: gtFalse, gt Page gt8
5. Outsourcing gtis gt a g t fairly gtnew gtconcept.
ANSWER: gtFalse, gt Page gt9
6. SAB gtshould gtexamine gttheir gtoff-shore gtpurchasing gtpolicy, gteven gtthough gtthe gtproducts gtare
gtsourced gtfrom gtthe gtU.S.
ANSWER: gtTrue, gt Page gt 9
7. It gtis g t expected gtthat gtsomeor gtall gtof gtthe gtBRIC gtcountries gt(Brazil, gtRussia, gtIndia& gtchina) gtwill
gtreplace gtthe gtso-called gtVISTA gtcountries gt(Vietnam, gtIndonesia, gtS. gtAfrica, gtTurkey gtand
gtArgentina)as gtlow gtcost gtproducers gtof gtvarious gtproducts gtand gtservices.
ANSWER: g t False, gtPage gt9
8. The gtworld gteconomy gtstill gtfavors gtthe gtUnited gtStates gtand gtEuropean gtcountries, gteven gtthough
gtChina gtand gtIndia gtcan gtparticipate gtin gtthe gtglobal gteconomy gtmuch gtmore gtreadily.
ANSWER: gtFalse, gt Page gt10
9. It g t is gtpredicted gtthat gtsocial gtnetworks gtsuch gtas gtFacebook gtand gtTwitter gtwill gtinfluence gtsupply
gtchains gtbecause gtof gttheir gtimpact gton gtcustomer gtdemand gtand gtthe gtspeed gtof gtinformation
gttransfers.
ANSWER: gtTrue, gt Page gt 10
10. The gtU.S. gttransportation gtsystem gtwas gtderegulated gtin gtthe gt1930s gtand gt1940s gtin gtresponse gtto
gteconomic gtconditions gtand gtWorld gtWar gt2
ANSWER: gtFalse, gt Page gt12
11. Even gtthough gtthere gtare gtreferences gtto gtsupply gtchain gtmanagement gtin gtthe gt1980s, gtSCM gtdid
gtnot gtcapture gtthe gtattention gtof gtsenior-level gtmanagement gtuntil gtthe gt1990s.
ANSWER: gtTrue, gt Page gt 15
12. Supply gtchain gtmanagers gtno gtlonger gtneed gtto gtworry gtabout gtsuboptimization gtin gtlight gtof
gttoday’s gttechnology.
ANSWER: gtFalse, gt Page gt19
1-7
,Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
Multiple gtChoice
13. Most gtretailers gtare gtessentially gt supply gtchain gtcompanies gtsince
A. g t they gtdominate gt the gtconsumer gtmarket.
b. own gt their gtwarehouses gtand gttrucks.
c. they gt buy gt products gtproduced gtby gtothers.
d. engage gt in gt off-shore gtsourcing.
ANSWER: gtc, gtPage gt6
14. Which gtof g t the gtbelow gtis gtnot gtone gtof g t the gtexternal gtforces gtdriving gtthe gtrate gtof
g t change gtand gtshaping gtour gteconomic gtand gtpolitical gtlandscape?
a. Government g t policy
b. Technology
c. Environmental g t concerns
d. Globalization
ANSWER: gtc, gtPage gt7
15. Outsourcing g t involves
a. moving gtcompany gtfacilities g t away g t from g t the g t home g t office.
b. hiring gtforeign g t nationals gt to g t manage gt parts gt of g t the gt business.
c. obtaining gtmaterials, gtparts, gtand gt products gtfrom gtother gtcompanies.
d. building gta gtfactory gt in gt another gtcountry.
ANSWER: gtc, gtPage gt9
16. Some gtindividuals gtdescribe gtthe gtcurrent gtconsumer gtas gtthe gt―click gthere‖
gtgeneration gtbecause
a. we gt all gthave gt Internet gtaccess.
b. we gtno gtlonger gtwait gtfor gtinformation gtto gt be gt“pushed gtout” gtto gtus.
c. we gt buy gt so gt much gtmerchandise gton gtline.
d. we gttake gtlittle gttime gtto gt make gtpurchasing gtdecisions.
ANSWER: gtb, gtPage gt10
17. The gtdemographics gtof gtour gtsociety gt has gtchanged gtbecause
a. the gt―Baby gt Boom‖ gtgeneration gtis gtnow gtturning gt60.
b. of gt the gtincrease gtin gttwo-career gtfamilies gtand gtsingle-parent gthouseholds.
c. of g t immigration.
d. birth g t rates g t have gtchanged.
ANSWER: gtb, gtPage gt12
18. The g t Supply g t Chain g t Concept
a. is g t very gt new gtand gt considered g t cutting gtedge gttechnology.
1-7
, Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
b. is gthighly gt dependent gtof gtcomputerization.
c. is gtnot gtalways gtwell gtunderstood gt by gtsenior gtmanagers.
d. developed gtfrom gtthe gt previous gt Physical gtDistribution gtconcept.
ANSWER: gtd, gtPage gt15
19. Logistics, gtin gtits gtsimplest gtform,
a. is gta gtmilitary gtterm, gtas gtit gtwas gtdeveloped gtoriginally gt to gtsupply gtthe gtbattlefield.
b. combines gtinbound gt logistics gtwith gtthe gtoutbound gtlogistics gtof gtphysical gtdistribution.
c. is gtanother gtterm gt for gttransportation gtmanagement.
d. does gtnot gtinvolve gtcustomer gt service gt or gtother gtrelated gt functions.
ANSWER: gtb, gtPage gt16
20. One gtof g t the gtmajor gtchallenges gtof gtsupply gtchain gt management gtis
a. forward gt buying.
b. maintaining gtthe gtvisibility g t of gtinventory.
c. buildingsafety-stockinventory.
d. Pushing gtinventory gtback gtto g t vendors.
ANSWER: gtb, gt Page18
21. Which gtof gt these gtflows gtonly gtone gtway gtas gtillustrated gtin gtFigure gt1-4?
a. information
b. products g t and gtservices
c. financials
d. None gt of g t these gtanswers
ANSWER: gtd, gtPage gt18
22. Traditionally, gtinformation gthas gtbeen gtviewed gtas gtflowing gtin g t the g t opposite gtdirection gtof
gtproducts, gtthat gtis, g t from gtthe gtmarket/customer gtback gtto gtthe g t wholesalers,
gtmanufacturers, gtand gtvendors.
a. This gtis gtstill g t true gt and gt has gtnot gtchanged.
b. Computerization gthas gtgreatly gtincreased gtthe gtflowgtof gtinformation gtfrom gtthe gtsource.
c. The gt ―Big gtBox‖ gt stores gthave gt developed gttheir gtown gt sources.
d. None gt of g t these gtanswers
ANSWER: gtd, gtPage gt21
23. One gtof gtthe gtfour gtsupply gtchain gtflows gtin gtFigure gt1 gt– gt8 gtthat gthas gtreceived gtincreased
gtattention gtfrom gtsupply gtchain gtmanagers gtdue gtto gtthe gtgrowth gtin gttechnology gtis:
a. Product g t flow
b. Information gtflow
c. Cash gt flow
1-7
gt
Edition
Chapter 1 Test Bank
1-7
,Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
CHAPTER g t 1 g t TEST g t QUESTIONS
True-False
1. The g t first gtdecade gtof g t the gttwenty-first gtcentury gtwas gta g t period gtof g t rapid gtchange gtfor
gtorganizations, gtespecially gtbusinesses.
ANSWER: gtTrue, gt Page gt 5
2. A g t key gtelement gtin g t Wal-Mart’s gtability g t to g t discount gtbrand gtname gtproducts gtwas gtan
g t understanding gtof gtthe gtcriticality gtof gtefficiency gtin gtits gtlogistics gtand gtsupply gtchain gtsystem.
ANSWER: gtTrue, gt Page gt 6
3. Globalization gthas g t had gtlittle g t effect gt on g t consumers.
ANSWER: gtFalse, gt Page gt7
4. Supply gtand gtdemand gthas gtbecome gtless gtvolatile gtas gtmanagers gtbecome gtmore gtadept gtat
gtcontrolling gtthe gtelements.
ANSWER: gtFalse, gt Page gt8
5. Outsourcing gtis gt a g t fairly gtnew gtconcept.
ANSWER: gtFalse, gt Page gt9
6. SAB gtshould gtexamine gttheir gtoff-shore gtpurchasing gtpolicy, gteven gtthough gtthe gtproducts gtare
gtsourced gtfrom gtthe gtU.S.
ANSWER: gtTrue, gt Page gt 9
7. It gtis g t expected gtthat gtsomeor gtall gtof gtthe gtBRIC gtcountries gt(Brazil, gtRussia, gtIndia& gtchina) gtwill
gtreplace gtthe gtso-called gtVISTA gtcountries gt(Vietnam, gtIndonesia, gtS. gtAfrica, gtTurkey gtand
gtArgentina)as gtlow gtcost gtproducers gtof gtvarious gtproducts gtand gtservices.
ANSWER: g t False, gtPage gt9
8. The gtworld gteconomy gtstill gtfavors gtthe gtUnited gtStates gtand gtEuropean gtcountries, gteven gtthough
gtChina gtand gtIndia gtcan gtparticipate gtin gtthe gtglobal gteconomy gtmuch gtmore gtreadily.
ANSWER: gtFalse, gt Page gt10
9. It g t is gtpredicted gtthat gtsocial gtnetworks gtsuch gtas gtFacebook gtand gtTwitter gtwill gtinfluence gtsupply
gtchains gtbecause gtof gttheir gtimpact gton gtcustomer gtdemand gtand gtthe gtspeed gtof gtinformation
gttransfers.
ANSWER: gtTrue, gt Page gt 10
10. The gtU.S. gttransportation gtsystem gtwas gtderegulated gtin gtthe gt1930s gtand gt1940s gtin gtresponse gtto
gteconomic gtconditions gtand gtWorld gtWar gt2
ANSWER: gtFalse, gt Page gt12
11. Even gtthough gtthere gtare gtreferences gtto gtsupply gtchain gtmanagement gtin gtthe gt1980s, gtSCM gtdid
gtnot gtcapture gtthe gtattention gtof gtsenior-level gtmanagement gtuntil gtthe gt1990s.
ANSWER: gtTrue, gt Page gt 15
12. Supply gtchain gtmanagers gtno gtlonger gtneed gtto gtworry gtabout gtsuboptimization gtin gtlight gtof
gttoday’s gttechnology.
ANSWER: gtFalse, gt Page gt19
1-7
,Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
Multiple gtChoice
13. Most gtretailers gtare gtessentially gt supply gtchain gtcompanies gtsince
A. g t they gtdominate gt the gtconsumer gtmarket.
b. own gt their gtwarehouses gtand gttrucks.
c. they gt buy gt products gtproduced gtby gtothers.
d. engage gt in gt off-shore gtsourcing.
ANSWER: gtc, gtPage gt6
14. Which gtof g t the gtbelow gtis gtnot gtone gtof g t the gtexternal gtforces gtdriving gtthe gtrate gtof
g t change gtand gtshaping gtour gteconomic gtand gtpolitical gtlandscape?
a. Government g t policy
b. Technology
c. Environmental g t concerns
d. Globalization
ANSWER: gtc, gtPage gt7
15. Outsourcing g t involves
a. moving gtcompany gtfacilities g t away g t from g t the g t home g t office.
b. hiring gtforeign g t nationals gt to g t manage gt parts gt of g t the gt business.
c. obtaining gtmaterials, gtparts, gtand gt products gtfrom gtother gtcompanies.
d. building gta gtfactory gt in gt another gtcountry.
ANSWER: gtc, gtPage gt9
16. Some gtindividuals gtdescribe gtthe gtcurrent gtconsumer gtas gtthe gt―click gthere‖
gtgeneration gtbecause
a. we gt all gthave gt Internet gtaccess.
b. we gtno gtlonger gtwait gtfor gtinformation gtto gt be gt“pushed gtout” gtto gtus.
c. we gt buy gt so gt much gtmerchandise gton gtline.
d. we gttake gtlittle gttime gtto gt make gtpurchasing gtdecisions.
ANSWER: gtb, gtPage gt10
17. The gtdemographics gtof gtour gtsociety gt has gtchanged gtbecause
a. the gt―Baby gt Boom‖ gtgeneration gtis gtnow gtturning gt60.
b. of gt the gtincrease gtin gttwo-career gtfamilies gtand gtsingle-parent gthouseholds.
c. of g t immigration.
d. birth g t rates g t have gtchanged.
ANSWER: gtb, gtPage gt12
18. The g t Supply g t Chain g t Concept
a. is g t very gt new gtand gt considered g t cutting gtedge gttechnology.
1-7
, Coyle gtSupply gtChain gtManagement: gtA gtLogistics g t Perspective, gt9th
gt
Edition
Chapter 1 Test Bank
b. is gthighly gt dependent gtof gtcomputerization.
c. is gtnot gtalways gtwell gtunderstood gt by gtsenior gtmanagers.
d. developed gtfrom gtthe gt previous gt Physical gtDistribution gtconcept.
ANSWER: gtd, gtPage gt15
19. Logistics, gtin gtits gtsimplest gtform,
a. is gta gtmilitary gtterm, gtas gtit gtwas gtdeveloped gtoriginally gt to gtsupply gtthe gtbattlefield.
b. combines gtinbound gt logistics gtwith gtthe gtoutbound gtlogistics gtof gtphysical gtdistribution.
c. is gtanother gtterm gt for gttransportation gtmanagement.
d. does gtnot gtinvolve gtcustomer gt service gt or gtother gtrelated gt functions.
ANSWER: gtb, gtPage gt16
20. One gtof g t the gtmajor gtchallenges gtof gtsupply gtchain gt management gtis
a. forward gt buying.
b. maintaining gtthe gtvisibility g t of gtinventory.
c. buildingsafety-stockinventory.
d. Pushing gtinventory gtback gtto g t vendors.
ANSWER: gtb, gt Page18
21. Which gtof gt these gtflows gtonly gtone gtway gtas gtillustrated gtin gtFigure gt1-4?
a. information
b. products g t and gtservices
c. financials
d. None gt of g t these gtanswers
ANSWER: gtd, gtPage gt18
22. Traditionally, gtinformation gthas gtbeen gtviewed gtas gtflowing gtin g t the g t opposite gtdirection gtof
gtproducts, gtthat gtis, g t from gtthe gtmarket/customer gtback gtto gtthe g t wholesalers,
gtmanufacturers, gtand gtvendors.
a. This gtis gtstill g t true gt and gt has gtnot gtchanged.
b. Computerization gthas gtgreatly gtincreased gtthe gtflowgtof gtinformation gtfrom gtthe gtsource.
c. The gt ―Big gtBox‖ gt stores gthave gt developed gttheir gtown gt sources.
d. None gt of g t these gtanswers
ANSWER: gtd, gtPage gt21
23. One gtof gtthe gtfour gtsupply gtchain gtflows gtin gtFigure gt1 gt– gt8 gtthat gthas gtreceived gtincreased
gtattention gtfrom gtsupply gtchain gtmanagers gtdue gtto gtthe gtgrowth gtin gttechnology gtis:
a. Product g t flow
b. Information gtflow
c. Cash gt flow
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