TEST BANK
TEST BANK
,Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
1. The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
a. True
b. False
ANSWER: True
2. An organization practicing sustainable supply chain management expects its suppliers to conform to the same
sustainability standards it holds.
a. True
b. False
ANSWER: True
3. Globalization has had little effect on consumers.
a. True
b. False
ANSWER: False
4. Supply and demand has become less volatile as managers have become more adept at controlling the elements.
a. True
b. False
ANSWER: False
5. Outsourcing is a fairly new concept.
a. True
b. False
ANSWER: False
6. Sustainability reporting is a growing practice, either mandatory or voluntarily, due to the demand for transparency in
the supply chains.
a. True
b. False
ANSWER: True
7. It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact
on customer demand and the speed of information transfer.
a. True
b. False
ANSWER: True
8. Best-in-class companies have developed a more flexible production schedule that allows for making inventory
adjustments in 48 to 72 hours.
a. True
b. False
ANSWER: False
9. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
less competitive environment.
a. True
b. False
ANSWER: False
10. Most retailers are essentially supply chain companies since they:
a. dominate the consumer market.
b. own their warehouses and trucks.
c. buy products produced by others.
d. engage in off-shore sourcing.
ANSWER: c
11. Which of the following is not one of the external forces driving the rate of change and shaping our economic and
political landscape?
a. Government policy
b. Technology
c. Environmental concerns
d. Globalization
ANSWER: c
12. Outsourcing involves:
a. moving company facilities away from the home office.
b. conducting business on a global scale.
c. obtaining materials, parts, products, and services from other companies.
d. building a factory in another country.
ANSWER: c
13. Identify the proper sequence of the three "flows" in the supply chain.
1. Product
2. Cash
3. Information
a. 1, 2, 3
b. 1, 3, 2
c. 2, 1, 3
d. 3, 2, 1
ANSWER: b
14. The demographics of our society has changed because:
a. the "Baby Boom" generation is aging.
b. of the increase in two-career families and single-parent households.
c. of immigration.
d. birth rates have changed.
ANSWER: b
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, Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
15. The Supply Chain Concept:
a. is very new and considered cutting edge technology.
b. is highly dependent on computerization.
c. is not always well understood by senior managers.
d. is developed from the previous physical distribution concept.
ANSWER: d
16. Logistics, in its simplest form,
a. is a military term, as it was developed originally to supply the battlefield.
b. combines inbound logistics with the outbound logistics of physical distribution.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
ANSWER: b
17. Ten years ago, Southwest Auto Parts would ship a standard number of various parts to all of its 147 locations once a
month. Today, Southwest’s more sophisticated inventory system monitors the stock at each location and adjusts the
number of each part accordingly in the monthly shipment to each store in order to prevent under- or overstocking the
stores on any given part. Within an integrated supply chain, this is an example of change in:
a. product flow.
b. information flow.
c. cash flow.
d. demand flow.
ANSWER: d
18. Which of the following flows only one way as illustrated in the Integrated Supply Chain—Basics figure?
a. Information
b. Products and services
c. Financials
d. None of these answers
ANSWER: d
19. Henderson Air manufactures heating and air conditioning units. Once a day, Henderson’s computerized inventory
system monitors the number of bolts and other fasteners the company needs to maintain production. If the amount of any
type of fastener in inventory dips below preset standards, the computer automatically sends an order for more fasteners to
Acme Fastener and Tool. This is an example of:
a. information flowing backward from the customer to the supplier.
b. information flowing forward from the supplier to the customer.
c. information flowing laterally between the customer and the supplier.
d. information flowing forward from the customer to the supplier.
ANSWER: a
20. Acme Fastener and Tool had a six-hour work stoppage yesterday, which means the company does not have its usual
number of fasteners stored in inventory. Concerned that the inability to fulfill all current orders may have an adverse
effect on some customers, Acme’s account executives are notifying all customers, including Henderson Air, that there
Copyright Cengage Learning. Powered by Cognero. Page 3
TEST BANK
,Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
1. The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
a. True
b. False
ANSWER: True
2. An organization practicing sustainable supply chain management expects its suppliers to conform to the same
sustainability standards it holds.
a. True
b. False
ANSWER: True
3. Globalization has had little effect on consumers.
a. True
b. False
ANSWER: False
4. Supply and demand has become less volatile as managers have become more adept at controlling the elements.
a. True
b. False
ANSWER: False
5. Outsourcing is a fairly new concept.
a. True
b. False
ANSWER: False
6. Sustainability reporting is a growing practice, either mandatory or voluntarily, due to the demand for transparency in
the supply chains.
a. True
b. False
ANSWER: True
7. It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact
on customer demand and the speed of information transfer.
a. True
b. False
ANSWER: True
8. Best-in-class companies have developed a more flexible production schedule that allows for making inventory
adjustments in 48 to 72 hours.
a. True
b. False
ANSWER: False
9. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
less competitive environment.
a. True
b. False
ANSWER: False
10. Most retailers are essentially supply chain companies since they:
a. dominate the consumer market.
b. own their warehouses and trucks.
c. buy products produced by others.
d. engage in off-shore sourcing.
ANSWER: c
11. Which of the following is not one of the external forces driving the rate of change and shaping our economic and
political landscape?
a. Government policy
b. Technology
c. Environmental concerns
d. Globalization
ANSWER: c
12. Outsourcing involves:
a. moving company facilities away from the home office.
b. conducting business on a global scale.
c. obtaining materials, parts, products, and services from other companies.
d. building a factory in another country.
ANSWER: c
13. Identify the proper sequence of the three "flows" in the supply chain.
1. Product
2. Cash
3. Information
a. 1, 2, 3
b. 1, 3, 2
c. 2, 1, 3
d. 3, 2, 1
ANSWER: b
14. The demographics of our society has changed because:
a. the "Baby Boom" generation is aging.
b. of the increase in two-career families and single-parent households.
c. of immigration.
d. birth rates have changed.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
Chapter 01 - Supply Chain Management: An Overview
Ch 01
15. The Supply Chain Concept:
a. is very new and considered cutting edge technology.
b. is highly dependent on computerization.
c. is not always well understood by senior managers.
d. is developed from the previous physical distribution concept.
ANSWER: d
16. Logistics, in its simplest form,
a. is a military term, as it was developed originally to supply the battlefield.
b. combines inbound logistics with the outbound logistics of physical distribution.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
ANSWER: b
17. Ten years ago, Southwest Auto Parts would ship a standard number of various parts to all of its 147 locations once a
month. Today, Southwest’s more sophisticated inventory system monitors the stock at each location and adjusts the
number of each part accordingly in the monthly shipment to each store in order to prevent under- or overstocking the
stores on any given part. Within an integrated supply chain, this is an example of change in:
a. product flow.
b. information flow.
c. cash flow.
d. demand flow.
ANSWER: d
18. Which of the following flows only one way as illustrated in the Integrated Supply Chain—Basics figure?
a. Information
b. Products and services
c. Financials
d. None of these answers
ANSWER: d
19. Henderson Air manufactures heating and air conditioning units. Once a day, Henderson’s computerized inventory
system monitors the number of bolts and other fasteners the company needs to maintain production. If the amount of any
type of fastener in inventory dips below preset standards, the computer automatically sends an order for more fasteners to
Acme Fastener and Tool. This is an example of:
a. information flowing backward from the customer to the supplier.
b. information flowing forward from the supplier to the customer.
c. information flowing laterally between the customer and the supplier.
d. information flowing forward from the customer to the supplier.
ANSWER: a
20. Acme Fastener and Tool had a six-hour work stoppage yesterday, which means the company does not have its usual
number of fasteners stored in inventory. Concerned that the inability to fulfill all current orders may have an adverse
effect on some customers, Acme’s account executives are notifying all customers, including Henderson Air, that there
Copyright Cengage Learning. Powered by Cognero. Page 3
