Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 3 Supply Chain Drivers and Metrics
3.1 True/False Questions
1) The major drivers of supply chain performance are customers, facilities, inventory,
transportation, and information.
Answer: FALSE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
2) The two major types of facilities are production sites and storage sites.
Answer: TRUE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
3) Inventory is an important supply chain driver because changing inventory policies can
dramatically alter the supply chain's efficiency and responsiveness.
Answer: TRUE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
4) Information is potentially the biggest driver of performance in the supply chain as it directly
affects each of the other drivers.
Answer: TRUE
Diff: 1
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Information technology
Objective: LO 3.2: Identify the major drivers of supply chain performance
5) A facility with little excess capacity will likely be no more or less efficient per unit of product
it produces than one with a lot of unused capacity.
Answer: FALSE
Diff: 1
Topic: 3.4 Facilities
AACSB: Analytical thinking
Objective: LO 3.4: Define the key metrics that track the performance of the supply chain in
terms of each driver.
1
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,6) The high utilization facility will have difficulty responding to demand fluctuations.
Answer: TRUE
Diff: 1
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.4: Define the key metrics that track the performance of the supply chain in
terms of each driver.
7) Stock keeping unit (SKU) storage is the warehousing methodology that uses a traditional
warehouse to store all of one type of product together.
Answer: TRUE
Diff: 2
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
8) Warehouse unit storage is the warehousing methodology that uses a traditional warehouse to
store all of one type of product together.
Answer: FALSE
Diff: 2
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
9) The components of inventory decisions include capacity, cycle inventory, safety inventory,
seasonal inventory, and sourcing.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
10) Cycle inventory is inventory that is built up to counter predictable variability in demand.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
2
Copyright © 2016 Pearson Education, Ltd.
, 11) Seasonal inventory is inventory that is built up to counter predictable variability in demand.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
12) Companies using seasonal inventory will build up inventory in periods of low demand and
store it for periods of high demand when they will not have the capacity to produce all that is
demanded.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
13) Companies using seasonal inventory will maintain a level inventory increase rate of
production for periods of high demand.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
14) A company's ability to find a balance between responsiveness and efficiency that best
matches the needs of the customer it is targeting is the key to achieving strategic fit.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
3
Copyright © 2016 Pearson Education, Ltd.
Chapter 3 Supply Chain Drivers and Metrics
3.1 True/False Questions
1) The major drivers of supply chain performance are customers, facilities, inventory,
transportation, and information.
Answer: FALSE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
2) The two major types of facilities are production sites and storage sites.
Answer: TRUE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
3) Inventory is an important supply chain driver because changing inventory policies can
dramatically alter the supply chain's efficiency and responsiveness.
Answer: TRUE
Diff: 2
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
4) Information is potentially the biggest driver of performance in the supply chain as it directly
affects each of the other drivers.
Answer: TRUE
Diff: 1
Topic: 3.2 Drivers of Supply Chain Performance
AACSB: Information technology
Objective: LO 3.2: Identify the major drivers of supply chain performance
5) A facility with little excess capacity will likely be no more or less efficient per unit of product
it produces than one with a lot of unused capacity.
Answer: FALSE
Diff: 1
Topic: 3.4 Facilities
AACSB: Analytical thinking
Objective: LO 3.4: Define the key metrics that track the performance of the supply chain in
terms of each driver.
1
Copyright © 2016 Pearson Education, Ltd.
,6) The high utilization facility will have difficulty responding to demand fluctuations.
Answer: TRUE
Diff: 1
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.4: Define the key metrics that track the performance of the supply chain in
terms of each driver.
7) Stock keeping unit (SKU) storage is the warehousing methodology that uses a traditional
warehouse to store all of one type of product together.
Answer: TRUE
Diff: 2
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
8) Warehouse unit storage is the warehousing methodology that uses a traditional warehouse to
store all of one type of product together.
Answer: FALSE
Diff: 2
Topic: 3.4 Facilities
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
9) The components of inventory decisions include capacity, cycle inventory, safety inventory,
seasonal inventory, and sourcing.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.2: Identify the major drivers of supply chain performance
10) Cycle inventory is inventory that is built up to counter predictable variability in demand.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
2
Copyright © 2016 Pearson Education, Ltd.
, 11) Seasonal inventory is inventory that is built up to counter predictable variability in demand.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
12) Companies using seasonal inventory will build up inventory in periods of low demand and
store it for periods of high demand when they will not have the capacity to produce all that is
demanded.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
13) Companies using seasonal inventory will maintain a level inventory increase rate of
production for periods of high demand.
Answer: FALSE
Diff: 1
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
14) A company's ability to find a balance between responsiveness and efficiency that best
matches the needs of the customer it is targeting is the key to achieving strategic fit.
Answer: TRUE
Diff: 2
Topic: 3.5 Inventory
AACSB: Application of knowledge
Objective: LO 3.3: Discuss the role of each driver in creating strategic fit between the supply
chain strategy and the competitive strategy.
3
Copyright © 2016 Pearson Education, Ltd.
