SCMN 3710 Chapter 15 Study Guide
Questions and All Correct Answers
2026-2027 Updated.
The seven principles of supply chain management have stood the test of time very well. -
Answer True
The first principle of supply chain management is to segment customers based on profit. -
Answer False
The fourth principle of supply chain management is to differentiate products closer to the
customer. - Answer True
Technology and data are already very well integrated into supply chain management. - Answer
False
Corporate executives are already well aware of the impact supply chain management can have
on their businesses. - Answer False
CEOs view SCM initiatives as being primarily focused on cost reduction. - Answer True
For businesses, collaboration skills are very important to develop. - Answer True
The primary goal of a differentiation strategy is make your firm's products appear to be different
than your competitors' products. - Answer False
An effective time-based strategy should consider the tradeoffs between transportation,
inventory, and warehousing costs. - Answer True
Decision making is part of the Cycle Time Reduction strategy. - Answer True
The most compelling "financial strategy" is the pursuit of cost reduction and profit
improvement. - Answer False
The "facility utilization" strategy places a high priority on making sure that all supply chain
facilities create value only for the individual organizations. - Answer False
, Outsourcing is a way to reduce asset investment as well as to address strategic and customer-
focused objectives. - Answer True
As a result of the economic recession that occurred in the 2008-2010 timeframe, growth in
supply chain technology has stagnated. - Answer False
It is anticipated that software as a service (SaaS), GPS and Cloud Computing technologies should
assist significantly in achieving enhanced supply chain flexibility and facilitating network-type
solutions. - Answer True
Key performance indicators (KPIs) that require ownership and commitment to the objectives by
all involved parties are needed for the success of relationship-based strategies. - Answer True
Which of the following does not belong in the list of the seven principles of supply chain
management?
a. Segment Customers Based on Service Needs
b. Differentiate Products Closer to the Customer
c. Develop Outsourcing Strategy to Maximize Asset Utilization
d. Adopt Channel-Spanning Performance Measures - Answer c
When a firm "customizes" their supply chain, it is
a. trying to improve asset utilization.
b. tailoring the chain to be responsive to the needs of individual customer segments.
c. responding to competitive situations.
d. revising its supply chain in light of current economic conditions. - Answer b
When a firm "sources strategically," it is
a. working together with customers and suppliers in a creative, positive way.
b. seeking least cost vendors.
c. matching product and raw material flows to minimize transportation costs.
d. reacting to current competitive situations. - Answer a
Corporate leaders
a. already understand the importance of supply chain excellence.
Questions and All Correct Answers
2026-2027 Updated.
The seven principles of supply chain management have stood the test of time very well. -
Answer True
The first principle of supply chain management is to segment customers based on profit. -
Answer False
The fourth principle of supply chain management is to differentiate products closer to the
customer. - Answer True
Technology and data are already very well integrated into supply chain management. - Answer
False
Corporate executives are already well aware of the impact supply chain management can have
on their businesses. - Answer False
CEOs view SCM initiatives as being primarily focused on cost reduction. - Answer True
For businesses, collaboration skills are very important to develop. - Answer True
The primary goal of a differentiation strategy is make your firm's products appear to be different
than your competitors' products. - Answer False
An effective time-based strategy should consider the tradeoffs between transportation,
inventory, and warehousing costs. - Answer True
Decision making is part of the Cycle Time Reduction strategy. - Answer True
The most compelling "financial strategy" is the pursuit of cost reduction and profit
improvement. - Answer False
The "facility utilization" strategy places a high priority on making sure that all supply chain
facilities create value only for the individual organizations. - Answer False
, Outsourcing is a way to reduce asset investment as well as to address strategic and customer-
focused objectives. - Answer True
As a result of the economic recession that occurred in the 2008-2010 timeframe, growth in
supply chain technology has stagnated. - Answer False
It is anticipated that software as a service (SaaS), GPS and Cloud Computing technologies should
assist significantly in achieving enhanced supply chain flexibility and facilitating network-type
solutions. - Answer True
Key performance indicators (KPIs) that require ownership and commitment to the objectives by
all involved parties are needed for the success of relationship-based strategies. - Answer True
Which of the following does not belong in the list of the seven principles of supply chain
management?
a. Segment Customers Based on Service Needs
b. Differentiate Products Closer to the Customer
c. Develop Outsourcing Strategy to Maximize Asset Utilization
d. Adopt Channel-Spanning Performance Measures - Answer c
When a firm "customizes" their supply chain, it is
a. trying to improve asset utilization.
b. tailoring the chain to be responsive to the needs of individual customer segments.
c. responding to competitive situations.
d. revising its supply chain in light of current economic conditions. - Answer b
When a firm "sources strategically," it is
a. working together with customers and suppliers in a creative, positive way.
b. seeking least cost vendors.
c. matching product and raw material flows to minimize transportation costs.
d. reacting to current competitive situations. - Answer a
Corporate leaders
a. already understand the importance of supply chain excellence.
