Testbank Chapter 10 GSCM

Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 10 Coordination in a Supply Chain

10.1 True/False Questions

1) Supply chain coordination requires each stage of the supply chain to take into account the
impact its actions have on other stages.
Answer: TRUE
Diff: 1
Topic: 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

2) A lack of coordination occurs either because different stages of the supply chain have
objectives that conflict or because information moving between stages gets delayed and
distorted.
Answer: TRUE
Diff: 2
Topic: 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

3) The bullwhip effect enables different stages of the supply chain to have a consistent estimate
of what demand looks like.
Answer: FALSE
Diff: 2
Topic: 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

4) Supply chain coordination improves if all stages of the chain take actions that are aligned and
together increase total supply chain surplus.
Answer: TRUE
Diff: 1
Topic: 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.




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,5) With an uncoordinated supply chain each stage tries to maximize its own profits, resulting in
actions that often diminish total supply chain profits.
Answer: TRUE
Diff: 1
Topic: 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

6) The bullwhip effect moves a supply chain away from the efficient frontier by increasing cost
and decreasing responsiveness.
Answer: TRUE
Diff: 1
Topic: 10.2 The Effect on Performance of Lack of Coordination
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

7) The bullwhip effect reduces the profitability of a supply chain by making it simpler to provide
a given level of product availability.
Answer: FALSE
Diff: 1
Topic: 10.2 The Effect on Performance of Lack of Coordination
AACSB: Application of knowledge
Objective: LO 10.1: Describe supply chain coordination and the bullwhip effect, and their
impact on supply chain performance.

8) Incentive obstacles refer to situations where incentives offered to different stages or
participants in a supply chain lead to actions that increase variability and reduce total supply
chain profits.
Answer: TRUE
Diff: 1
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

9) Improperly structured sales force incentives are a significant obstacle to coordination in the
supply chain.
Answer: TRUE
Diff: 2
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.




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, 10) Measuring performance based on sell-through is often justified on the grounds that the
manufacturer's sales force does not control sell-in.
Answer: FALSE
Diff: 3
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

11) The lack of information sharing between the retailer and manufacturer leads to a large
fluctuation in manufacturer orders.
Answer: TRUE
Diff: 1
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Information technology
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

12) Pricing obstacles refer to situations in which the pricing policies for a product lead to an
increase in variability of orders placed.
Answer: TRUE
Diff: 1
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

13) Lot size based quantity discounts reduce the bullwhip effect within the supply chain.
Answer: FALSE
Diff: 2
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

14) Trade promotions and other short-term discounts offered by a manufacturer result in large
orders during the promotion period followed by very small orders after that.
Answer: TRUE
Diff: 1
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.

15) Behavioral obstacles are often related to the way the supply chain is structured and reduce
the bullwhip effect.
Answer: FALSE
Diff: 2
Topic: 10.3 Obstacles to Coordination in a Supply Chain
AACSB: Application of knowledge
Objective: LO 10.2: Identify obstacles to coordination in a supply chain.


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