TEST BANK
SUPPLY CHAIN LOGISTICS MANAGEMENT
6TH EDITION
CHAPTER 1: 21ST-CENTURY SUPPLY CHAINS
MULTIPLE CHOICE QUESTION & ANSWERS
1) The goal of integrated logistics is to:
A) identify new suppliers.
B) develop innovative new products.
C) synchronize and link the supply chain.
D) reduce product variety.
ANS: C
2) Over the past several decades, responsiveness has increased, primarily because of:
A) improvement in federal highways.
B) better sea ports.
C) development of double stack containers.
D) information technology adoption.
ANS: D
3) A supply chain is best described as a(n)________ of ________ companies.
A) group, competing
B) group, collaborative
C) alliance, two
D) directory, related
ANS: B
4) Which of the following best describes an integrative supply chain process:
A) something that links together independent parts.
B) a concept that identifies independent parts.
C) a conglomeration of functions.
D) the linking of critical parts of a supply chain.
ANS: D
,5) Firms working together to integrate components of a supply chain is known as ________
A) acquisition
B) sharing
C) collaboration
D) collusion
ANS: C
6) A firm which provides critical operations functionality to members of a supply chain is a(n):
A) integrated service supplier (ISP).
B) supply chain leader.
C) supply chain follower.
D) retailer.
ANS: A
7) In order to achieve the lowest total process cost, a supply chain must ________.
A) minimize the cost of the most expensive function
B) minimize the cost of each function
C) minimize the total cost for all involved functions combined
D) analyze each function separately
ANS: C
8) The Anticipatory Business Model is best described by which statement:
A) driven by forecast.
B) driven by information technology.
C) builds on the principles of time-based competition.
D) is a low risk strategy.
ANS: A
9) The primary benefits of low product complexity include all of the following except:
A) increased revenue.
B) improved product quality and reliability.
C) improved product development.
D) decreased sales support cost.
ANS: A
,10) According to research, all of the following are examples of supply chain disruptors except:
A) consumers have become more patient.
B) consumers demand more personalization of products and services.
C) growth of omni-channel shopping.
D) competing priorities of millennial and aging consumers.
ANS: A
11) A firm that increases the number of stock-keeping-units (SKUs) in its product portfolio can
expect to initially experience ________ revenues and ________ supply chain costs.
A) increasing, increasing
B) decreasing, increasing
C) increasing, decreasing
D) decreasing, decreasing
ANS: A
12) The process of managing customer returns and products which have served their purpose is
known as:
A) reverse logistics.
B) backfilling.
C) order fulfillment.
D) demand planning.
ANS: A
TRUE/FALSE
13) The internet has increased customization of products.
⊚ true
⊚ false
ANS: true
14) Supply chain management promotes a network of highly efficient interdependent businesses.
⊚ true
⊚ false
ANS: true
, 15) Life cycle support is a critical supply chain processes.
⊚ true
⊚ false
ANS: true
16) Sharing future strategic and tactical plans is a fundamental part of supply chain management.
⊚ true
⊚ false
ANS: true
17) A third party service supplier is also known as a non-asset based ISP.
⊚ true
⊚ false
ANS: false
18) Process specialization involves the same concepts as vertical integration.
⊚ true
⊚ false
ANS: false
19) Widespread adoption of information technology has led to increased operational
responsiveness.
⊚ true
⊚ false
ANS: true
20) Enterprise extension is an expansion of control to increase joint planning and collaboration.
⊚ true
⊚ false
ANS: true
SUPPLY CHAIN LOGISTICS MANAGEMENT
6TH EDITION
CHAPTER 1: 21ST-CENTURY SUPPLY CHAINS
MULTIPLE CHOICE QUESTION & ANSWERS
1) The goal of integrated logistics is to:
A) identify new suppliers.
B) develop innovative new products.
C) synchronize and link the supply chain.
D) reduce product variety.
ANS: C
2) Over the past several decades, responsiveness has increased, primarily because of:
A) improvement in federal highways.
B) better sea ports.
C) development of double stack containers.
D) information technology adoption.
ANS: D
3) A supply chain is best described as a(n)________ of ________ companies.
A) group, competing
B) group, collaborative
C) alliance, two
D) directory, related
ANS: B
4) Which of the following best describes an integrative supply chain process:
A) something that links together independent parts.
B) a concept that identifies independent parts.
C) a conglomeration of functions.
D) the linking of critical parts of a supply chain.
ANS: D
,5) Firms working together to integrate components of a supply chain is known as ________
A) acquisition
B) sharing
C) collaboration
D) collusion
ANS: C
6) A firm which provides critical operations functionality to members of a supply chain is a(n):
A) integrated service supplier (ISP).
B) supply chain leader.
C) supply chain follower.
D) retailer.
ANS: A
7) In order to achieve the lowest total process cost, a supply chain must ________.
A) minimize the cost of the most expensive function
B) minimize the cost of each function
C) minimize the total cost for all involved functions combined
D) analyze each function separately
ANS: C
8) The Anticipatory Business Model is best described by which statement:
A) driven by forecast.
B) driven by information technology.
C) builds on the principles of time-based competition.
D) is a low risk strategy.
ANS: A
9) The primary benefits of low product complexity include all of the following except:
A) increased revenue.
B) improved product quality and reliability.
C) improved product development.
D) decreased sales support cost.
ANS: A
,10) According to research, all of the following are examples of supply chain disruptors except:
A) consumers have become more patient.
B) consumers demand more personalization of products and services.
C) growth of omni-channel shopping.
D) competing priorities of millennial and aging consumers.
ANS: A
11) A firm that increases the number of stock-keeping-units (SKUs) in its product portfolio can
expect to initially experience ________ revenues and ________ supply chain costs.
A) increasing, increasing
B) decreasing, increasing
C) increasing, decreasing
D) decreasing, decreasing
ANS: A
12) The process of managing customer returns and products which have served their purpose is
known as:
A) reverse logistics.
B) backfilling.
C) order fulfillment.
D) demand planning.
ANS: A
TRUE/FALSE
13) The internet has increased customization of products.
⊚ true
⊚ false
ANS: true
14) Supply chain management promotes a network of highly efficient interdependent businesses.
⊚ true
⊚ false
ANS: true
, 15) Life cycle support is a critical supply chain processes.
⊚ true
⊚ false
ANS: true
16) Sharing future strategic and tactical plans is a fundamental part of supply chain management.
⊚ true
⊚ false
ANS: true
17) A third party service supplier is also known as a non-asset based ISP.
⊚ true
⊚ false
ANS: false
18) Process specialization involves the same concepts as vertical integration.
⊚ true
⊚ false
ANS: false
19) Widespread adoption of information technology has led to increased operational
responsiveness.
⊚ true
⊚ false
ANS: true
20) Enterprise extension is an expansion of control to increase joint planning and collaboration.
⊚ true
⊚ false
ANS: true
