Approach, 9th Edition (Coyle)
CHAPTER 1 TEST QUESTIONS
True-False
1. The last decade of the twentieth century was a period of rapid change for organizations,
especially businesses.
ANSWER: True
2. A key element in Wal-Mart's ability to discount brand name products was an
understanding of the criticality of efficiency in its logistics and supply chain system.
ANSWER: True
3. Globalization has had little effect on consumers.
ANSWER: False
4. Supply and demand has become less volatile as managers become more adept at
controlling the elements.
ANSWER: False
5. Outsourcing is a fairly new concept.
ANSWER: False
6. SAB should examine their off-shore purchasing policy, even though the products are sourced
from the U.S.
ANSWER: True
,7. The world economy still favors the United States and European countries, even though
China and India can participate in the global economy much more readily.
ANSWER: False
8. The U.S. transportation system was deregulated in the 1930s and 1940s in response to
economic conditions and World War 2.
ANSWER: False
, 9. Even though there are references to supply chain management in the 1980s, SCM did not
capture the attention of senior-level management until the 1990s.
ANSWER: True
10. Supply chain managers no longer need to worry about suboptimization in light of today's
technology.
ANSWER: False
Multiple Choice
11. Most retailers are essentially supply chain companies since
a. they dominate the consumer market.
b. own their warehouses and trucks.
c. they buy products produced by others.
d. engage in off-shore sourcing.
ANSWER: c
12. Which of the below 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
13. Outsourcing involves
, a. moving company facilities away from the home office.
b. hiring foreign nationals to manage parts of the business.
c. obtaining materials, parts, and products from other companies.