DD
D
Test Bank for Principles of Supply Chain Management
A Balanced Approach 3rd Edition (EXAM
Chapter 1—Introduction to Supply Chain Management
D D D D D
TRUE/FALSE
1. AccordingDtoDtheDtextbook,DtheDkeysDtoDsuccessfulDsupplyDchainDmana
gementDincludeDtrust,Dcooperation,DcollaborationDandDhonest,DaccurateDcommunicationsDbetweenDsup
plyDchainDpartners.
ANS:D T PTS:D 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
2. SupplyDchainDmanagementDisDconcernedDaboutDhowDsuppliers’Dproduc
tsDareDdesigned,Dproduced,DandDtransported.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
3. OneDdefinitionDofDsupplyDchainDmanagementDisD"CoordinationDa
ndDcollaborationDwithDchannelDpartners,DwhichDcanDbeDsuppliers,Dintermediaries,Dthird-
partyDserviceDproviders,DandDcustomers."
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
4. TheDuniversallyDacceptedDdefinitionDofDsupplyDchainDmanagementDisD"t
heDmanagementDandDintegrationDofDtheDpartiesDinvolvedDinDproducingDtheDendDitemsDcovetedDbyDcons
umers."
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DComprehension Difficulty:DEasy
5. TheDassemblyDorDproductionDofDfinishedDproducts,DproducingDtheDrig
htDamountDofDproduct,DandDensuringDthatDfinishedDproductsDmeetDspecificDquality,Dcost,DandDcusto
merDserviceDrequirementsDcanDallDbeDconsideredDelementsDofDoperations.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DComprehension Difficulty:DEasy
6. AccordingDtoDtheDtextbook,DsupplyDchainsDincludeDrawDmaterialDsupplier
s,DintermediateDcomponentDmanufacturers,Dend-
productDmanufacturers,DwholesaleDdistributors,DretailersDandDend-productDconsumers.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
7. TruckingDcompanies,DairfreightDshippingDcompanies,DandDinformatio
nDsystemDprovidersDcanDallDbeDconsideredDserviceDprovidersDtoDtheDsupplyDchain.
ANS:D T PTS: 1
,DD
D
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
,DD
D
8. AccordingDtoDtheDtextbook,DaDsupplyDchain'sDendDcustomersDareDtheDon
lyDtrueDsourceDofDincomeDforDallDsupplyDchainDorganizations.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
9. TheDfoundationDelementsDofDsupplyDchainDmanagementDareDSuppl
y.DOperations,DCustomerDService,DLogistics.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DComprehension Difficulty:DEasy
10. SupplyDchainDmanagementDactivityDincludesDmanagingDtheDvario
usDcompensationDandDbenefitDprogramsDwithinDanDorganization.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-3 Bloom’s:DComprehension Difficulty:DEasy
11. HighlyDvaluedDcustomersDwithDlargeDpurchasingDbudgetsDwhoDachie
veDmoderateDsupplyDchainDmanagementDsuccessDhaveDbeenDknownDtoDlowerDpurchasingDandDinven
toryDcarryingDcosts,DandDcreateDbetterDqualityDproductsDwithDhigherDlevelsDofDcustomerDservice.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-3 Bloom’s:DKnowledge Difficulty:DEasy
12. ManyDlargeDfirmsDareDmovingDtoDin-
houseDverticallyDintegratedDstructuresDwhereDtheyDhaveDmoreDcontrolDoverDeachDbusinessDunit.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DComprehension Difficulty:DEasy
13. SupplyDchainDanalyticsDcanDbeDusedDalongDtheDsupplyDchainDtoDsched
uleDproductionDaccordingDtoDexpectedDsupplierDdeliveries
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DAnalysis Difficulty:DEasy
14. AccordingDtoDtheDtextbook,DinDtheD1950'sDandD1960's,DmassDproducti
onDtechniquesDfocusedDonDcreatingDsupplierDpartnerships,DimprovingDprocessDdesignDandDflexibility
,DandDimprovingDproductDquality.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
15. AccordingDtoDtheDtextbook,Dthird-
partyDlogisticsDprovidersD(3LPs)DdoDnotDofferDassistanceDwithDhelpingDproductsDclearDcustoms.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
16. AccordingDtoDtheDtextbook,DenvironmentalDandDsocialDimpactsDa
reDconsideredDoutsideDofDsupplyDchainDmanagement.
, DD
D
ANS:D F PTS: 1 REF:
BUSPROG:DDiversity LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
17. TrendsDinDsupplyDchainDmanagementDincludeDexpansionDofDtheDsupp
lyDchainDandDdecreasingDsupplyDchainDvisibility.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
18. AccordingDtoDtheDtext,DsupplyDchainDmanagementDwillDinvolveDcultur
alDchangeDamongDmostDorDallDofDtheDparticipants.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
19. TheDbullwhipDeffectDcausesDanDamplificationDofDtheDvariationDinDt
heDdemandDpatternDalongDtheDsupplyDchain.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-5 Bloom’s:DKnowledge Difficulty:DEasy
20. TheDbullwhipDeffectDisDtheDresultDofDcompaniesDproducingDexcessiveDde
fectiveDproducts;DdefectiveDitemsDareDwhippedDbackDfromDtheDendDcustomerDtowardDtheDmanufacturer
ofDtheDdefect.
D
ANS:D F PTS: 1
BUSPROG:DTechnology LO: 1-5 Bloom’s:DAnalysis Difficulty:DEasy
MULTIPLEDCHOICE
1. WhenDaDparticularDitemDisDinDshortDsupplyDaccompaniedDbyDrisingDprices
,DaDfirmDmightDfindDitDbeneficialDto:
a. DiscontinueDbuyingDtheDproductDandDfocusDmoreDonDcheaperDproducts.
b. AlignDitselfDwithDoneDofDtheDsuppliersDtoDensureDaDcontinuedDsupplyDofDtheDscarceDitem.
c. PurchaseDtheDitemDfromDaDmanufacturerDwhoDcutsDcornersDandDprovidesDaDproductDbel
owDmarketDprice.
d. AllDofDthese
ANS:D B PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DComprehension Difficulty:DEasy
2. SupplyDchainDmanagementDincludesDtheDplanningDandDmanagementDofDal
lDactivitiesDinvolvedDinDsourcingDandDprocurement,Dconversion,DandDallDlogisticsDmanagementDactivitie
s.DItDalsoDincludes:
a. HumanDresourcesDandDjobDdesign
b. SellingDandDmarketingDproducts
c. CoordinationDandDcollaborationDwithDchannelDpartners
d. ProgramDevaluationDandDreviewDtechniques.
ANS:D C PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
D
Test Bank for Principles of Supply Chain Management
A Balanced Approach 3rd Edition (EXAM
Chapter 1—Introduction to Supply Chain Management
D D D D D
TRUE/FALSE
1. AccordingDtoDtheDtextbook,DtheDkeysDtoDsuccessfulDsupplyDchainDmana
gementDincludeDtrust,Dcooperation,DcollaborationDandDhonest,DaccurateDcommunicationsDbetweenDsup
plyDchainDpartners.
ANS:D T PTS:D 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
2. SupplyDchainDmanagementDisDconcernedDaboutDhowDsuppliers’Dproduc
tsDareDdesigned,Dproduced,DandDtransported.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
3. OneDdefinitionDofDsupplyDchainDmanagementDisD"CoordinationDa
ndDcollaborationDwithDchannelDpartners,DwhichDcanDbeDsuppliers,Dintermediaries,Dthird-
partyDserviceDproviders,DandDcustomers."
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy
4. TheDuniversallyDacceptedDdefinitionDofDsupplyDchainDmanagementDisD"t
heDmanagementDandDintegrationDofDtheDpartiesDinvolvedDinDproducingDtheDendDitemsDcovetedDbyDcons
umers."
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DComprehension Difficulty:DEasy
5. TheDassemblyDorDproductionDofDfinishedDproducts,DproducingDtheDrig
htDamountDofDproduct,DandDensuringDthatDfinishedDproductsDmeetDspecificDquality,Dcost,DandDcusto
merDserviceDrequirementsDcanDallDbeDconsideredDelementsDofDoperations.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DComprehension Difficulty:DEasy
6. AccordingDtoDtheDtextbook,DsupplyDchainsDincludeDrawDmaterialDsupplier
s,DintermediateDcomponentDmanufacturers,Dend-
productDmanufacturers,DwholesaleDdistributors,DretailersDandDend-productDconsumers.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
7. TruckingDcompanies,DairfreightDshippingDcompanies,DandDinformatio
nDsystemDprovidersDcanDallDbeDconsideredDserviceDprovidersDtoDtheDsupplyDchain.
ANS:D T PTS: 1
,DD
D
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
,DD
D
8. AccordingDtoDtheDtextbook,DaDsupplyDchain'sDendDcustomersDareDtheDon
lyDtrueDsourceDofDincomeDforDallDsupplyDchainDorganizations.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DKnowledge Difficulty:DEasy
9. TheDfoundationDelementsDofDsupplyDchainDmanagementDareDSuppl
y.DOperations,DCustomerDService,DLogistics.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-2 Bloom’s:DComprehension Difficulty:DEasy
10. SupplyDchainDmanagementDactivityDincludesDmanagingDtheDvario
usDcompensationDandDbenefitDprogramsDwithinDanDorganization.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-3 Bloom’s:DComprehension Difficulty:DEasy
11. HighlyDvaluedDcustomersDwithDlargeDpurchasingDbudgetsDwhoDachie
veDmoderateDsupplyDchainDmanagementDsuccessDhaveDbeenDknownDtoDlowerDpurchasingDandDinven
toryDcarryingDcosts,DandDcreateDbetterDqualityDproductsDwithDhigherDlevelsDofDcustomerDservice.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-3 Bloom’s:DKnowledge Difficulty:DEasy
12. ManyDlargeDfirmsDareDmovingDtoDin-
houseDverticallyDintegratedDstructuresDwhereDtheyDhaveDmoreDcontrolDoverDeachDbusinessDunit.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DComprehension Difficulty:DEasy
13. SupplyDchainDanalyticsDcanDbeDusedDalongDtheDsupplyDchainDtoDsched
uleDproductionDaccordingDtoDexpectedDsupplierDdeliveries
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DAnalysis Difficulty:DEasy
14. AccordingDtoDtheDtextbook,DinDtheD1950'sDandD1960's,DmassDproducti
onDtechniquesDfocusedDonDcreatingDsupplierDpartnerships,DimprovingDprocessDdesignDandDflexibility
,DandDimprovingDproductDquality.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
15. AccordingDtoDtheDtextbook,Dthird-
partyDlogisticsDprovidersD(3LPs)DdoDnotDofferDassistanceDwithDhelpingDproductsDclearDcustoms.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
16. AccordingDtoDtheDtextbook,DenvironmentalDandDsocialDimpactsDa
reDconsideredDoutsideDofDsupplyDchainDmanagement.
, DD
D
ANS:D F PTS: 1 REF:
BUSPROG:DDiversity LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
17. TrendsDinDsupplyDchainDmanagementDincludeDexpansionDofDtheDsupp
lyDchainDandDdecreasingDsupplyDchainDvisibility.
ANS:D F PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
18. AccordingDtoDtheDtext,DsupplyDchainDmanagementDwillDinvolveDcultur
alDchangeDamongDmostDorDallDofDtheDparticipants.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-4 Bloom’s:DKnowledge Difficulty:DEasy
19. TheDbullwhipDeffectDcausesDanDamplificationDofDtheDvariationDinDt
heDdemandDpatternDalongDtheDsupplyDchain.
ANS:D T PTS: 1
BUSPROG:DAnalytic LO: 1-5 Bloom’s:DKnowledge Difficulty:DEasy
20. TheDbullwhipDeffectDisDtheDresultDofDcompaniesDproducingDexcessiveDde
fectiveDproducts;DdefectiveDitemsDareDwhippedDbackDfromDtheDendDcustomerDtowardDtheDmanufacturer
ofDtheDdefect.
D
ANS:D F PTS: 1
BUSPROG:DTechnology LO: 1-5 Bloom’s:DAnalysis Difficulty:DEasy
MULTIPLEDCHOICE
1. WhenDaDparticularDitemDisDinDshortDsupplyDaccompaniedDbyDrisingDprices
,DaDfirmDmightDfindDitDbeneficialDto:
a. DiscontinueDbuyingDtheDproductDandDfocusDmoreDonDcheaperDproducts.
b. AlignDitselfDwithDoneDofDtheDsuppliersDtoDensureDaDcontinuedDsupplyDofDtheDscarceDitem.
c. PurchaseDtheDitemDfromDaDmanufacturerDwhoDcutsDcornersDandDprovidesDaDproductDbel
owDmarketDprice.
d. AllDofDthese
ANS:D B PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DComprehension Difficulty:DEasy
2. SupplyDchainDmanagementDincludesDtheDplanningDandDmanagementDofDal
lDactivitiesDinvolvedDinDsourcingDandDprocurement,Dconversion,DandDallDlogisticsDmanagementDactivitie
s.DItDalsoDincludes:
a. HumanDresourcesDandDjobDdesign
b. SellingDandDmarketingDproducts
c. CoordinationDandDcollaborationDwithDchannelDpartners
d. ProgramDevaluationDandDreviewDtechniques.
ANS:D C PTS: 1
BUSPROG:DAnalytic LO: 1-1 Bloom’s:DKnowledge Difficulty:DEasy