Name: Class: Date: - Chapter 01: Introduction to Supply Chain Manage...

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Chapter 01: Introduction to Supply Chain Management

Powered by Cognero Page 1 Indicate whether the statement is true or 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.

• True
• False

2.Supply chain management is concerned about how suppliers’ products are designed, produced, and transported.

• True
• False

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."

• True
• False

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."

• True
• False

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.

• True
• False

6.According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers, end- product manufacturers, wholesale distributors, retailers and end-product consumers.

• True
• False

7.Trade estimates suggest that the bullwhip effect results in excess costs on the order of 50 percent for each firm in a supply chain.

• True
• False

8.According to the textbook, a supply chain's end customers are the only true source of income for all supply chain organizations.

• True
• False

9.The foundation elements of supply chain management are Supply, Operations, Customer Service, and Logistics.

• True
• False

10.Supply chain management activity includes managing the various compensation and benefit programs within an organization.Principles of Supply Chain Management A Balanced Approach, 6e Joel Wisner, Keah-Choon Tan, Keong Leong (Test Bank All Chapters, 100% Original Verified, A+ Grade)(Test Bank Answers At The End Of Each Chapter) 1 / 4

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• True
• False

• 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.

• True
• False

• Many large firms are moving to in-house vertically integrated structures where they have more control over each

business unit.

• True
• False

• Supply chain analytics can be used along the supply chain to schedule production according to expected supplier

deliveries

• True
• False

• According to the textbook, in the 1950s and 1960s, mass production techniques focused on creating supplier

partnerships, improving process design and flexibility, and improving product quality.

• True
• False

• Supply Chain Management activities work with computer-aided design programs to ensure continued supply of a

scarce item.

• True
• False

• According to the textbook, environmental and social impacts are considered outside of supply chain management.
• True
• False

• Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
• True
• False

• Circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
• True
• False

• The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
• True
• False

• 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. 2 / 4

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• True
• False

Indicate the answer choice that best completes the statement or answers the question.

• When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:
• Discontinue buying the product and focus more on cheaper products.
• Align itself with one of the suppliers to ensure a continued supply of the scarce item.
• Purchase the item from a manufacturer who cuts corners and provides a product below market price.
• All of these

• 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:

• Human resources and job design
• Selling and marketing products
• Coordination and collaboration with channel partners
• Program evaluation and review techniques.

• Which of the following companies are indirectly involved in most supply chains?
• Trucking and airfreight companies
• Freight forwarders
• Public warehousing firms
• All of these

• According to the textbook, conditions which must be present for successful supply chain management include:
• High level of trust among firms
• Corporate contracts regarding performance expectations
• Short-term company focused performance
• Benchmarking

25. According to the text, the FOUR important elements of the supply chain are:

• Purchasing, manufacturing, transportation, retail stores
• Supply, operations, logistics, integration
• Purchasing, manufacturing, logistics, transportation
• Supply, operations, manufacturing, distribution

• Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
• Progressive procurement
• Supplier management
• Right-shoring
• Supply chain performance management

• Which of the following activities would fall under the foundational element of operation?
• Distribution network
• Supplier management 3 / 4

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• Demand management
• Third-party logistics services

• One operational method for managing inventory is the implementation of a software system which can be referred to

as:

• Customer relationship management (CRM)
• Demand capacity tracking (DCT)
• Material requirements planning (MRP)
• Demand process reengineering (DPR)

• Which of the following tends to reduce duplicate testing and inspections and the need for extensive supplier

evaluations?

• Supplier certification
• Right-shoring
• Business process reengineering
• Pilot Production

• According to the textbook, the order of product and service flow is as follows:
• Raw material supplier, retailer, component manufacturer, wholesale distributor, end product manufacturer,

end-product consumer

• Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer,

end-product consumer

• Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer,

end-product consumer

• Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer,

end-product consumer

• Which of the following is a reverse logistics activity?
• Delivering finished goods to your customer
• Recycling products and components
• Developing a collaborative relationship with your supplier
• Managing the quality of products

• Which of the following would be considered a third party logistics provider?
• A raw materials supplier
• An intermediate component manufacturer
• A firm that leases storage warehousing
• An end product manufacturer

• Which of the following statements is TRUE?
• Supply chain management was invented by the auto manufacturing industry.
• Strategic partnerships are seen as one of the foundations of supply chain management.
• Purchasing is seen as the final and most difficult step in the supply chain.
• Service response logistics is the digital distribution of services.

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