, TESTBANK FOR
Supply Chain Management Strategy, Planning, and Operation, 8th edition
Chopra
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
Purchase Guarantee
If you believe you have purchased the wrong file, don’t worry. Contact us anytime and we
will gladly replace it with the correct version.
Contact Email:
,Supply Chain Management, 8e (Chopra)
Chapter 1 Understanding the Supply Chain
LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions on
the success of a firm.
1) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
2) A supply chain is static, and involves the constant flow of information, product, and funds among
different stages.
Answer: FALSE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
3) Of the three flows in the supply chain, only funds flow one way.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
4) Supply chain cost is the difference between customer value and supply chain surplus.
Answer: TRUE
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
5) The primary reason that supply chain surplus is difficult to measure in accounting terms is that
customers are difficult to identify.
Answer: FALSE
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
1
Copyright © 2026 Pearson Education, Inc.
,6) Most supply chains are strictly linear chains of supply chain members.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
7) A supply chain includes only the organizations directly involved in supplying components needed for
manufacturing.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
8) The objective of every supply chain is to maximize the speed that materials move.
Answer: TRUE
Diff: 1
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
9) The objective of the customer arrival process is to ensure that orders are quickly and accurately entered
and communicated to other affected supply chain processes.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
10) The objective of customer order entry is to maintain a record of product receipt and complete
payment.
Answer: FALSE
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
2
Copyright © 2026 Pearson Education, Inc.
,11) The difference between the value of the product and its price remains with the customer as consumer
surplus.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
12) There is a close connection between the design and management of supply chain flows and the
success of a supply chain.
Answer: TRUE
Diff: 1
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
13) Each stage in a supply chain is connected through the flow of products, information, and funds. These
flows often occur in both directions and are usually managed by
A) pricing department.
B) one of the stages.
C) upper management.
D) engineering department.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
14) What is the main reason that supply chain surplus is considered a better measure of success than
individual stage profitability?
A) Supply chain surplus directly correlates with the total revenue generated by customers.
B) Individual profitability often leads to conflicting decisions that can reduce overall surplus.
C) Measuring individual profitability is easier and more precise than measuring supply chain surplus.
D) Supply chain surplus guarantees immediate cost reductions at all stages.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
3
Copyright © 2026 Pearson Education, Inc.
,15) Why do distributors play a critical role in Indian supply chains compared to U.S. supply chains?
A) Indian distributors have better technology than their U.S. counterparts.
B) The small size of Indian retail outlets requires frequent and smaller deliveries.
C) Indian manufacturers lack the capacity to ship directly to retailers.
D) U.S. distributors prefer to stock products from only one manufacturer.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
16) What supply chain decision would likely maximize customer value for a high-demand humidifier at
Home Depot?
A) Keeping the model available for immediate purchase in all stores.
B) Stocking the model exclusively in regional warehouses for faster delivery.
C) Shipping the model only when customers place online orders.
D) Offering discounts on models with longer delivery times.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
17) How does Walmart's approach to integrating its online and brick-and-mortar supply chains reflect the
importance of supply chain adaptability?
A) Walmart reduced its investment in transportation infrastructure to focus on online sales.
B) The company shifted entirely to online sales, abandoning brick-and-mortar stores.
C) Walmart focused exclusively on fast-moving consumer goods to maintain profitability.
D) It expanded fulfillment channels and leveraged store capabilities to meet changing customer needs.
Answer: D
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
4
Copyright © 2026 Pearson Education, Inc.
,18) What could have prevented Webvan's failure in its supply chain design?
A) Creating a hybrid model using traditional supermarket supply chain efficiencies.
B) Developing a supply chain that minimized labor costs for order picking.
C) Expanding its warehouses to increase inventory turnover rates.
D) Reducing the number of delivery cities to focus on larger metropolitan areas.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
19) A supply chain features a constant flow of
A) information, product and funds.
B) personnel, information, and policies.
C) processes, funds, and product.
D) product, processes, and support.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
20) Why is focusing on the supply chain surplus beneficial for all members of the supply chain?
A) It helps each stage maximize its individual profit.
B) It ensures that costs are equally distributed across all members.
C) It encourages coordinated decisions that grow the overall supply chain surplus.
D) It eliminates the need for intermediaries in the supply chain.
Answer: C
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
21) Why might a supply chain that increases the total surplus fail to satisfy all its members?
A) The total surplus might not be evenly distributed across all stages.
B) Increased surplus often leads to higher customer expectations.
C) The value of the surplus depends on the demand forecast.
D) Higher surplus always results in reduced profitability for upstream stages.
Answer: A
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
5
Copyright © 2026 Pearson Education, Inc.
,22) Which statement best describes the relationship between supply chain stages and the overall supply
chain surplus?
A) Each stage's surplus contribution is always equal to its costs.
B) The surplus generated by a supply chain depends solely on the efficiency of the manufacturer.
C) Coordination between stages can increase the total surplus, even if individual stages incur higher
costs.
D) The total supply chain surplus is maximized when each stage focuses exclusively on minimizing its
own costs.
Answer: C
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
23) When considering customer needs in a supply chain, which of the following is most critical to the
supply chain's success?
A) Offering the lowest possible price for a product.
B) Aligning supply chain operations to deliver maximum value at minimal cost.
C) Ensuring products are delivered as quickly as possible.
D) Minimizing inventory to avoid surplus goods.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
24) In supply chain management, what determines the choice of how a product is made available to
customers?
A) The availability of intermediaries.
B) The cost of production at the manufacturing stage.
C) The value customers receive and the total supply chain cost incurred.
D) The capacity of distribution centers.
Answer: C
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
6
Copyright © 2026 Pearson Education, Inc.
,25) Which of these is most typical of a supply chain's structure?
A) A linear chain with one supplier at each stage.
B) A circular flow of products and funds.
C) A network with multiple suppliers and customers at each stage.
D) A single entity managing all production and distribution.
Answer: C
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
26) What are the three key flows involved in a supply chain?
A) Product, transportation, and revenue
B) Information, product, and funds
C) Revenue, cost, and product
D) Inventory, customer service, and marketing
Answer: B
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
27) Which statement about supply chains is best?
A) New product development is not a supply chain function.
B) If a supplier uses a shipping company to send product to a customer, the shipping company is
technically not a supply chain member.
C) Funds in a supply chain flow upstream only.
D) Flows in a supply chain may be managed by an intermediary.
Answer: D
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
28) Which sequence of stages is typical for product flow in a supply chain?
A) Supplier → Manufacturer → Distributor
B) Retailer → Distributor → Customer
C) Manufacturer → Retailer → Distributor
D) Supplier → Customer → Retailer
Answer: A
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
7
Copyright © 2026 Pearson Education, Inc.
, 29) Supply chain surplus involves what two parts?
A) Manufacturing cost and selling price
B) Customer value and supply chain cost
C) Customer value and high quality products
D) Reliable transportation and supply chain cost
Answer: B
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
30) For any supply chain, the source of revenue is generated by
A) efficient operations.
B) information flows.
C) the customer.
D) product flows.
Answer: C
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
31) Customer value is
A) the sum of the supply chain surplus and supply chain cost.
B) the remainder after supply chain cost is subtracted from supply chain surplus.
C) the remainder after supply chain surplus is subtracted from supply chain cost.
D) supply chain profitability minus the supply chain cost.
Answer: A
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Analytical thinking
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
32) The objective of every supply chain is to
A) minimize the overall cost generated.
B) maximize the net value generated.
C) minimize the cost to the manufacturer.
D) maximize the profit of the manufacturer.
Answer: B
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Analytical thinking
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
8
Copyright © 2026 Pearson Education, Inc.
Supply Chain Management Strategy, Planning, and Operation, 8th edition
Chopra
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
Purchase Guarantee
If you believe you have purchased the wrong file, don’t worry. Contact us anytime and we
will gladly replace it with the correct version.
Contact Email:
,Supply Chain Management, 8e (Chopra)
Chapter 1 Understanding the Supply Chain
LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions on
the success of a firm.
1) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
2) A supply chain is static, and involves the constant flow of information, product, and funds among
different stages.
Answer: FALSE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
3) Of the three flows in the supply chain, only funds flow one way.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
4) Supply chain cost is the difference between customer value and supply chain surplus.
Answer: TRUE
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
5) The primary reason that supply chain surplus is difficult to measure in accounting terms is that
customers are difficult to identify.
Answer: FALSE
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
1
Copyright © 2026 Pearson Education, Inc.
,6) Most supply chains are strictly linear chains of supply chain members.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
7) A supply chain includes only the organizations directly involved in supplying components needed for
manufacturing.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
8) The objective of every supply chain is to maximize the speed that materials move.
Answer: TRUE
Diff: 1
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
9) The objective of the customer arrival process is to ensure that orders are quickly and accurately entered
and communicated to other affected supply chain processes.
Answer: FALSE
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
10) The objective of customer order entry is to maintain a record of product receipt and complete
payment.
Answer: FALSE
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
2
Copyright © 2026 Pearson Education, Inc.
,11) The difference between the value of the product and its price remains with the customer as consumer
surplus.
Answer: TRUE
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
12) There is a close connection between the design and management of supply chain flows and the
success of a supply chain.
Answer: TRUE
Diff: 1
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
13) Each stage in a supply chain is connected through the flow of products, information, and funds. These
flows often occur in both directions and are usually managed by
A) pricing department.
B) one of the stages.
C) upper management.
D) engineering department.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
14) What is the main reason that supply chain surplus is considered a better measure of success than
individual stage profitability?
A) Supply chain surplus directly correlates with the total revenue generated by customers.
B) Individual profitability often leads to conflicting decisions that can reduce overall surplus.
C) Measuring individual profitability is easier and more precise than measuring supply chain surplus.
D) Supply chain surplus guarantees immediate cost reductions at all stages.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
3
Copyright © 2026 Pearson Education, Inc.
,15) Why do distributors play a critical role in Indian supply chains compared to U.S. supply chains?
A) Indian distributors have better technology than their U.S. counterparts.
B) The small size of Indian retail outlets requires frequent and smaller deliveries.
C) Indian manufacturers lack the capacity to ship directly to retailers.
D) U.S. distributors prefer to stock products from only one manufacturer.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
16) What supply chain decision would likely maximize customer value for a high-demand humidifier at
Home Depot?
A) Keeping the model available for immediate purchase in all stores.
B) Stocking the model exclusively in regional warehouses for faster delivery.
C) Shipping the model only when customers place online orders.
D) Offering discounts on models with longer delivery times.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
17) How does Walmart's approach to integrating its online and brick-and-mortar supply chains reflect the
importance of supply chain adaptability?
A) Walmart reduced its investment in transportation infrastructure to focus on online sales.
B) The company shifted entirely to online sales, abandoning brick-and-mortar stores.
C) Walmart focused exclusively on fast-moving consumer goods to maintain profitability.
D) It expanded fulfillment channels and leveraged store capabilities to meet changing customer needs.
Answer: D
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
4
Copyright © 2026 Pearson Education, Inc.
,18) What could have prevented Webvan's failure in its supply chain design?
A) Creating a hybrid model using traditional supermarket supply chain efficiencies.
B) Developing a supply chain that minimized labor costs for order picking.
C) Expanding its warehouses to increase inventory turnover rates.
D) Reducing the number of delivery cities to focus on larger metropolitan areas.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
19) A supply chain features a constant flow of
A) information, product and funds.
B) personnel, information, and policies.
C) processes, funds, and product.
D) product, processes, and support.
Answer: A
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
20) Why is focusing on the supply chain surplus beneficial for all members of the supply chain?
A) It helps each stage maximize its individual profit.
B) It ensures that costs are equally distributed across all members.
C) It encourages coordinated decisions that grow the overall supply chain surplus.
D) It eliminates the need for intermediaries in the supply chain.
Answer: C
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
21) Why might a supply chain that increases the total surplus fail to satisfy all its members?
A) The total surplus might not be evenly distributed across all stages.
B) Increased surplus often leads to higher customer expectations.
C) The value of the surplus depends on the demand forecast.
D) Higher surplus always results in reduced profitability for upstream stages.
Answer: A
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
5
Copyright © 2026 Pearson Education, Inc.
,22) Which statement best describes the relationship between supply chain stages and the overall supply
chain surplus?
A) Each stage's surplus contribution is always equal to its costs.
B) The surplus generated by a supply chain depends solely on the efficiency of the manufacturer.
C) Coordination between stages can increase the total surplus, even if individual stages incur higher
costs.
D) The total supply chain surplus is maximized when each stage focuses exclusively on minimizing its
own costs.
Answer: C
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
23) When considering customer needs in a supply chain, which of the following is most critical to the
supply chain's success?
A) Offering the lowest possible price for a product.
B) Aligning supply chain operations to deliver maximum value at minimal cost.
C) Ensuring products are delivered as quickly as possible.
D) Minimizing inventory to avoid surplus goods.
Answer: B
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
24) In supply chain management, what determines the choice of how a product is made available to
customers?
A) The availability of intermediaries.
B) The cost of production at the manufacturing stage.
C) The value customers receive and the total supply chain cost incurred.
D) The capacity of distribution centers.
Answer: C
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
6
Copyright © 2026 Pearson Education, Inc.
,25) Which of these is most typical of a supply chain's structure?
A) A linear chain with one supplier at each stage.
B) A circular flow of products and funds.
C) A network with multiple suppliers and customers at each stage.
D) A single entity managing all production and distribution.
Answer: C
Diff: 2
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
26) What are the three key flows involved in a supply chain?
A) Product, transportation, and revenue
B) Information, product, and funds
C) Revenue, cost, and product
D) Inventory, customer service, and marketing
Answer: B
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
27) Which statement about supply chains is best?
A) New product development is not a supply chain function.
B) If a supplier uses a shipping company to send product to a customer, the shipping company is
technically not a supply chain member.
C) Funds in a supply chain flow upstream only.
D) Flows in a supply chain may be managed by an intermediary.
Answer: D
Diff: 3
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
28) Which sequence of stages is typical for product flow in a supply chain?
A) Supplier → Manufacturer → Distributor
B) Retailer → Distributor → Customer
C) Manufacturer → Retailer → Distributor
D) Supplier → Customer → Retailer
Answer: A
Diff: 1
Topic: 1.1: What Is a Supply Chain?
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
7
Copyright © 2026 Pearson Education, Inc.
, 29) Supply chain surplus involves what two parts?
A) Manufacturing cost and selling price
B) Customer value and supply chain cost
C) Customer value and high quality products
D) Reliable transportation and supply chain cost
Answer: B
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
30) For any supply chain, the source of revenue is generated by
A) efficient operations.
B) information flows.
C) the customer.
D) product flows.
Answer: C
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Application of knowledge
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
31) Customer value is
A) the sum of the supply chain surplus and supply chain cost.
B) the remainder after supply chain cost is subtracted from supply chain surplus.
C) the remainder after supply chain surplus is subtracted from supply chain cost.
D) supply chain profitability minus the supply chain cost.
Answer: A
Diff: 3
Topic: 1.2: Process Views of a Supply Chain
AACSB: Analytical thinking
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
32) The objective of every supply chain is to
A) minimize the overall cost generated.
B) maximize the net value generated.
C) minimize the cost to the manufacturer.
D) maximize the profit of the manufacturer.
Answer: B
Diff: 2
Topic: 1.2: Process Views of a Supply Chain
AACSB: Analytical thinking
Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain decisions
on the success of a firm.
8
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