Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
Chapter 1—Introduction to Supply Chain Management
TRUE/FALSE
1. According to the textbook, the keys to successful supply chain
management include trust, cooperation, collaboration and honest, accurate communications between
supply chain partners.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
2. Supply chain management is concerned about how suppliers’ products
are designed, produced, and transported.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
3. One definition of supply chain management is "Coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party service
providers, and customers."
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
4. The universally accepted definition of supply chain management is "the
management and integration of the parties involved in producing the end items coveted by
consumers."
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Comprehension Difficulty: Easy
5. The assembly or production of finished products, producing the right
amount of product, and ensuring that finished products meet specific quality, cost, and customer
service requirements can all be considered elements of operations.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Comprehension Difficulty: Easy
6. According to the textbook, supply chains include raw material suppliers,
intermediate component manufacturers, end-product manufacturers, wholesale distributors, retailers
and end-product consumers.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
7. Trucking companies, airfreight shipping companies, and information
system providers can all be considered service providers to the supply chain.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
,Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
8. According to the textbook, a supply chain's end customers are the only
true source of income for all supply chain organizations.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
9. The foundation elements of supply chain management are Supply.
Operations, Customer Service, Logistics.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Comprehension Difficulty: Easy
10. Supply chain management activity includes managing the various
compensation and benefit programs within an organization.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-3 Bloom’s: Comprehension Difficulty: Easy
11. Highly valued customers with large purchasing budgets who achieve
moderate supply chain management success have been known to lower purchasing and inventory
carrying costs, and create better quality products with higher levels of customer service.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-3 Bloom’s: Knowledge Difficulty: Easy
12. Many large firms are moving to in-house vertically integrated structures
where they have more control over each business unit.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Comprehension Difficulty: Easy
13. Supply chain analytics can be used along the supply chain to schedule
production according to expected supplier deliveries
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Analysis Difficulty: Easy
14. According to the textbook, in the 1950's and 1960's, mass production
techniques focused on creating supplier partnerships, improving process design and flexibility, and
improving product quality.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
15. According to the textbook, third-party logistics providers (3LPs) do not
offer assistance with helping products clear customs.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
16. According to the textbook, environmental and social impacts are
considered outside of supply chain management.
,Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
ANS: F PTS: 1 REF:
BUSPROG: Diversity LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
17. Trends in supply chain management include expansion of the supply
chain and decreasing supply chain visibility.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
18. According to the text, supply chain management will involve cultural
change among most or all of the participants.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
19. The bullwhip effect causes an amplification of the variation in the
demand pattern along the supply chain.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-5 Bloom’s: Knowledge Difficulty: Easy
20. The bullwhip effect is the result of companies producing excessive
defective products; defective items are whipped back from the end customer toward the manufacturer
of the defect.
ANS: F PTS: 1
BUSPROG: Technology LO: 1-5 Bloom’s: Analysis Difficulty: Easy
MULTIPLE CHOICE
1. When a particular item is in short supply accompanied by rising prices, a
firm might find it beneficial to:
a. Discontinue buying the product and focus more on cheaper products.
b. Align itself with one of the suppliers to ensure a continued supply of the scarce item.
c. Purchase the item from a manufacturer who cuts corners and provides a product below
market price.
d. All of these
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Comprehension Difficulty: Easy
2. Supply chain management includes the planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management activities. It
also includes:
a. Human resources and job design
b. Selling and marketing products
c. Coordination and collaboration with channel partners
d. Program evaluation and review techniques.
ANS: C PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
, Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
3. Which company is experimenting with the management of the final mile
of delivery in some markets, using small aerial drones to deliver shoebox-size packages from
fulfillment centers?
a. FedEx
b. UPS
c. Zappos
d. Amazon
ANS: D PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
4. According to the textbook, conditions which must be present for
successful supply chain management include:
a. Cooperation among firms
b. Corporate contracts regarding performance expectations
c. Short-term company focused performance
d. Vertical Integration
ANS: A PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
5. According to the text, the FOUR important elements of the supply chain
are:
a. Purchasing, manufacturing, transportation, retail stores
b. Supply, operations, logistics, integration
c. Purchasing, manufacturing, logistics, transportation
d. Supply, operations, manufacturing, distribution
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
6. Encouraging or helping a firm's suppliers to perform in a desired fashion
can be referred to as:
a. Progressive procurement
b. Supplier management
c. Right-shoring
d. Supply chain performance management
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
7. Which of the following activities would fall under the foundational
element of operation?
a. Distribution network
b. Supplier management
c. Demand management
d. Third-party logistics services
ANS: C PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
Chapter 1—Introduction to Supply Chain Management
TRUE/FALSE
1. According to the textbook, the keys to successful supply chain
management include trust, cooperation, collaboration and honest, accurate communications between
supply chain partners.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
2. Supply chain management is concerned about how suppliers’ products
are designed, produced, and transported.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
3. One definition of supply chain management is "Coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party service
providers, and customers."
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
4. The universally accepted definition of supply chain management is "the
management and integration of the parties involved in producing the end items coveted by
consumers."
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Comprehension Difficulty: Easy
5. The assembly or production of finished products, producing the right
amount of product, and ensuring that finished products meet specific quality, cost, and customer
service requirements can all be considered elements of operations.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Comprehension Difficulty: Easy
6. According to the textbook, supply chains include raw material suppliers,
intermediate component manufacturers, end-product manufacturers, wholesale distributors, retailers
and end-product consumers.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
7. Trucking companies, airfreight shipping companies, and information
system providers can all be considered service providers to the supply chain.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
,Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
8. According to the textbook, a supply chain's end customers are the only
true source of income for all supply chain organizations.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
9. The foundation elements of supply chain management are Supply.
Operations, Customer Service, Logistics.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Comprehension Difficulty: Easy
10. Supply chain management activity includes managing the various
compensation and benefit programs within an organization.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-3 Bloom’s: Comprehension Difficulty: Easy
11. Highly valued customers with large purchasing budgets who achieve
moderate supply chain management success have been known to lower purchasing and inventory
carrying costs, and create better quality products with higher levels of customer service.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-3 Bloom’s: Knowledge Difficulty: Easy
12. Many large firms are moving to in-house vertically integrated structures
where they have more control over each business unit.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Comprehension Difficulty: Easy
13. Supply chain analytics can be used along the supply chain to schedule
production according to expected supplier deliveries
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Analysis Difficulty: Easy
14. According to the textbook, in the 1950's and 1960's, mass production
techniques focused on creating supplier partnerships, improving process design and flexibility, and
improving product quality.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
15. According to the textbook, third-party logistics providers (3LPs) do not
offer assistance with helping products clear customs.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
16. According to the textbook, environmental and social impacts are
considered outside of supply chain management.
,Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
ANS: F PTS: 1 REF:
BUSPROG: Diversity LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
17. Trends in supply chain management include expansion of the supply
chain and decreasing supply chain visibility.
ANS: F PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
18. According to the text, supply chain management will involve cultural
change among most or all of the participants.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-4 Bloom’s: Knowledge Difficulty: Easy
19. The bullwhip effect causes an amplification of the variation in the
demand pattern along the supply chain.
ANS: T PTS: 1
BUSPROG: Analytic LO: 1-5 Bloom’s: Knowledge Difficulty: Easy
20. The bullwhip effect is the result of companies producing excessive
defective products; defective items are whipped back from the end customer toward the manufacturer
of the defect.
ANS: F PTS: 1
BUSPROG: Technology LO: 1-5 Bloom’s: Analysis Difficulty: Easy
MULTIPLE CHOICE
1. When a particular item is in short supply accompanied by rising prices, a
firm might find it beneficial to:
a. Discontinue buying the product and focus more on cheaper products.
b. Align itself with one of the suppliers to ensure a continued supply of the scarce item.
c. Purchase the item from a manufacturer who cuts corners and provides a product below
market price.
d. All of these
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Comprehension Difficulty: Easy
2. Supply chain management includes the planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management activities. It
also includes:
a. Human resources and job design
b. Selling and marketing products
c. Coordination and collaboration with channel partners
d. Program evaluation and review techniques.
ANS: C PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
, Test Bank for Principles of Supply Chain Management A Balanced Approach 3rd Edition (EXAM
3. Which company is experimenting with the management of the final mile
of delivery in some markets, using small aerial drones to deliver shoebox-size packages from
fulfillment centers?
a. FedEx
b. UPS
c. Zappos
d. Amazon
ANS: D PTS: 1
BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge Difficulty: Easy
4. According to the textbook, conditions which must be present for
successful supply chain management include:
a. Cooperation among firms
b. Corporate contracts regarding performance expectations
c. Short-term company focused performance
d. Vertical Integration
ANS: A PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
5. According to the text, the FOUR important elements of the supply chain
are:
a. Purchasing, manufacturing, transportation, retail stores
b. Supply, operations, logistics, integration
c. Purchasing, manufacturing, logistics, transportation
d. Supply, operations, manufacturing, distribution
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
6. Encouraging or helping a firm's suppliers to perform in a desired fashion
can be referred to as:
a. Progressive procurement
b. Supplier management
c. Right-shoring
d. Supply chain performance management
ANS: B PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
7. Which of the following activities would fall under the foundational
element of operation?
a. Distribution network
b. Supplier management
c. Demand management
d. Third-party logistics services
ANS: C PTS: 1
BUSPROG: Analytic LO: 1-2 Bloom’s: Knowledge Difficulty: Easy
