Chapter 1

Question	Answer
1. The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.	T
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.	T
3. Globalization has had little effect on consumers.	F
4. Supply and demand has become less volatile as managers become more adept at controlling the elements.	F
5. Outsourcing is a fairly new concept.	F
6. SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.	T
7. It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and Argentina) as low cost producers of various products and services.	F
8. 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.	F
9. 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 transfers.	T
10. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2	F
11. 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.	T
12. Supply chain managers no longer need to worry about suboptimization in light of today’s technology.	F
13. 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.	c. they buy products produced by others.
14. 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	c. Environmental concerns
15. 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. d. building a factory in another country.	c. obtaining materials, parts, and products from other companies.
Some individuals describe the current consumer as the “click here” generation because a. we all have Internet access. b. we no longer wait for information to be “pushed out” to us. c. we buy so much merchandise on line. d. we take little time to make purchasing decisions.	b. we no longer wait for information to be “pushed out” to us.
17. The demographics of our society has changed because a. the “Baby Boom” generation is now turning 60. b. of the increase in two-career families and single-parent households. c. of immigration. d. birth rates have changed.	b. of the increase in two-career families and single-parent households.
The Supply Chain Concept a. is very new and considered cutting edge technology. b. is highly dependent of computerization. c. is not always well understood by senior managers. d. developed from the previous Physical Distribution concept.	d. developed from the previous Physical Distribution concept.
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.	b. combines inbound logistics with the outbound logistics of physical distribution.
One of the major challenges of supply chain management is a. forward buying. b. maintaining the visibility of inventory. c. building safety-stock inventory. d. Pushing inventory back to vendors.	b. maintaining the visibility of inventory.
21. Which of these flows only one way as illustrated in Figure 1-4? a. information b. products and services c. financials d. None of these answers	d. None of these answers
22. Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors. a. This is still true and has not changed. b. Computerization has greatly increased the flow of information from the source. c. The “Big Box” stores have developed their own sources. d. None of these answers	d. None of these answers
23. One of the four supply chain flows in Figure 1 – 8 that has received increased attention from supply chain managers due to the growth in technology is: a. Product flow b. Information flow c. Cash flow d. Demand flow	d. Demand flow
24. The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included? a. complexity b. inventory deployment c. inventory carrying costs d. technology	c. inventory carrying costs
25. Which of the following is not part of the Supply Chain network? a. plants b. stores c. terminals d. distribution centers	b. stores
Complexity in the supply chain is caused by a. the number of SKUs. b. locations of customers and suppliers. c. transportation requirements. d. All of these answers.	d. All of these answers.
27. Cost/Value refers to a. getting the best value for the money spent. b. U.S. firms competing in the global arena. c. the importance of cost and value at the very end of the supply chain. d. product variety.	c. the importance of cost and value at the very end of the supply chain.
28. Performance measurement is important because a. it allows firms to rate competitors. b. without it, managers would not know how the global economy is doing. c. companies presently operating in the European Economic Community need to understand how its competitors are doing. d. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.	d. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.
29. A critical outcome of the supply chain is to deliver a. profits. b. the right product to the right place. c. cost/value. d. on management’s expectations.	b. the right product to the right place.

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	Created by Perla Soto Valle over 8 years ago