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Chapter 1 Test Bank r r r
CHAPTER 1 TEST QUESTIONS r r r
True-False
1. The last decade of the twentieth century was a period of rapid change for organizations, especially busi
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nesses.
ANSWER: True r
2. A key element in Wal-
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Mart's ability to discount brand name products was an understanding of the criticality of efficiency in i
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ts logistics and supply chain system.
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ANSWER: True r
3. Globalization has had little effect on consumers. r r r r r r
ANSWER: False r
4. Supply and demand has become less volatile as managers become more adept at controlling the ele
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ments.
ANSWER: False r
5. Outsourcing is a fairly new concept. r r r r r
ANSWER: False r
6. SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.
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ANSWER: True r
7. The world economy still favors the United States and European countries, even though China and Indi
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a can participate in the global economy much more readily.
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ANSWER: False r
8. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic con
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ditions and World War 2. r r r r
1-1
©r2013rCengagerLearning.rAllrRightsrReserved.rThisreditionrisrintendedrforruseroutsiderofrtherU.S.ronly,rwithrcontentrthatrmayrberdifferentr fro
mrtherU.S.rEdition.rMayrnotrberscanned,rcopied,rduplicated,rorrpostedrtorarpubliclyraccessiblerwebsite,rinrwholerorrinrpart.
,Coyle Managing Supply Chains: A Logistics Approach, 9th Edition
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Chapter 1 Test Bank
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ANSWER: False r
1-2
©r2013rCengagerLearning.rAllrRightsrReserved.rThisreditionrisrintendedrforruseroutsiderofrtherU.S.ronly,rwithrcontentrthatrmayrberdifferentr fro
mrtherU.S.rEdition.rMayrnotrberscanned,rcopied,rduplicated,rorrpostedrtorarpubliclyraccessiblerwebsite,rinrwholerorrinrpart.
, Coyle Managing Supply Chains: A Logistics Approach, 9th Edition
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Chapter 1 Test Bank
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9. Even though there are references to supply chain management in the 1980s, SCM did not capture the atten
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tion of senior-level management until the 1990s.
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ANSWER: True r
10. Supply chain managers no longer need to worry about suboptimization in light of today's technology.
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ANSWER: False r
Multiple Choice
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11. Most retailers are essentially supply chain companies since
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a. they dominate the consumer market.
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b. own their warehouses and trucks.
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c. they buy products produced by others.
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d. engage in off-shore sourcing. r r r
ANSWER: c r
12. Which of the below is not one of the external forces driving the rate of change and shaping our econo
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mic and political landscape?
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a. Government policy r
b. Technology
c. Environmental concerns r
d. Globalization
ANSWER: c r
13. Outsourcing involves r
a. moving company facilities away from the home office.
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b. hiring foreign nationals to manage parts of the business.
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c. obtaining materials, parts, and products from other companies.
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1-3
©r2013rCengagerLearning.rAllrRightsrReserved.rThisreditionrisrintendedrforruseroutsiderofrtherU.S.ronly,rwithrcontentrthatrmayrberdifferentr fro
mrtherU.S.rEdition.rMayrnotrberscanned,rcopied,rduplicated,rorrpostedrtorarpubliclyraccessiblerwebsite,rinrwholerorrinrpart.