Supply Chain 301 - Exam 1 - Iowa
State Test Questions Fully Solved
2026 Edition.
Transportation Management belongs to which foundation of Supply Chain Management? -
Answer Distribution
A __________ is a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a source
to a customer. - Answer Supply Chain
T/F 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 False
1 current trend of supply chain management - Answer Green of the Supply Chain
What can be classified as a 3PL? - Answer - A company that offers warehousing services,
transportation services, and customs clearing services.
T/F Reverse logistics activities include the return of defective and damaged items to the
manufacturer, and the recycling of used packaging. - Answer True
T/F 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 True
T/F Trends in supply chain management include expansion of the supply chain and decreasing
supply chain visibility. - Answer False
T/F One definition of supply chain management is "The planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management
activity." - Answer True
The following supply chain concept was introduced in the 1990's in an attempt to reduce waste
and increase performance: - Answer Business Process Reengineering
T/F Generally, firms outsource noncore activities while focusing on core competencies. - Answer
True
, T/F Decentralized purchasing is the practice where individual, local purchasing departments
throughout a single corporation make their own, individual purchasing decisions to fulfill their
individual local needs. - Answer True
What is a reason to make a product within a firm? - Answer To protect proprietary property
or technology.
T/F Key activities of supply management include negotiations, logistics, contract development
and administration, inventory control and management, and supplier management. - Answer
True
T/F Reasons for buying items instead of making them can include cost advantage, insufficient
capacity, lack of expertise, and quality. - Answer True
T/F The purchase order is NOTa legally binding contract until it is accepted by the supplier. -
Answer True
T/F The Total Cost of Ownership Concept does NOT include quantitative factors. - Answer
False
T/F The possibility of events like strikes, assembly line breakdowns, and natural disasters are all
reasons a company should favor using a single supplier. - Answer False
According to the text, key ingredients for developing successful supply partnerships do not
include: - Answer Individualized objectives
Explain and define Supply Chain Management - Answer The planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and collaboration with channel partners,
which can be channel suppliers, intermediaries, third-party service providers, and customers.
Downstream - Answer The direction in which materials flow, e.g. a customer will always be
downstream from its suppliers
Upstream - Answer The direction in a supply chain opposite to the flow of materials, e.g. a
supplier will always be upstream from its customers
Upstream and Downstream Supply Chain Tiers (6) - Answer 1. Raw Material suppliers (2nd
tier suppliers)
State Test Questions Fully Solved
2026 Edition.
Transportation Management belongs to which foundation of Supply Chain Management? -
Answer Distribution
A __________ is a set of three or more organizations linked directly by one or more of the
upstream or downstream flows of products, services, finances, and information from a source
to a customer. - Answer Supply Chain
T/F 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 False
1 current trend of supply chain management - Answer Green of the Supply Chain
What can be classified as a 3PL? - Answer - A company that offers warehousing services,
transportation services, and customs clearing services.
T/F Reverse logistics activities include the return of defective and damaged items to the
manufacturer, and the recycling of used packaging. - Answer True
T/F 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 True
T/F Trends in supply chain management include expansion of the supply chain and decreasing
supply chain visibility. - Answer False
T/F One definition of supply chain management is "The planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management
activity." - Answer True
The following supply chain concept was introduced in the 1990's in an attempt to reduce waste
and increase performance: - Answer Business Process Reengineering
T/F Generally, firms outsource noncore activities while focusing on core competencies. - Answer
True
, T/F Decentralized purchasing is the practice where individual, local purchasing departments
throughout a single corporation make their own, individual purchasing decisions to fulfill their
individual local needs. - Answer True
What is a reason to make a product within a firm? - Answer To protect proprietary property
or technology.
T/F Key activities of supply management include negotiations, logistics, contract development
and administration, inventory control and management, and supplier management. - Answer
True
T/F Reasons for buying items instead of making them can include cost advantage, insufficient
capacity, lack of expertise, and quality. - Answer True
T/F The purchase order is NOTa legally binding contract until it is accepted by the supplier. -
Answer True
T/F The Total Cost of Ownership Concept does NOT include quantitative factors. - Answer
False
T/F The possibility of events like strikes, assembly line breakdowns, and natural disasters are all
reasons a company should favor using a single supplier. - Answer False
According to the text, key ingredients for developing successful supply partnerships do not
include: - Answer Individualized objectives
Explain and define Supply Chain Management - Answer The planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and collaboration with channel partners,
which can be channel suppliers, intermediaries, third-party service providers, and customers.
Downstream - Answer The direction in which materials flow, e.g. a customer will always be
downstream from its suppliers
Upstream - Answer The direction in a supply chain opposite to the flow of materials, e.g. a
supplier will always be upstream from its customers
Upstream and Downstream Supply Chain Tiers (6) - Answer 1. Raw Material suppliers (2nd
tier suppliers)
