Test Bank for Supply Chain Management: A Logistics Perspective 12th Edition | ISBN 9780357984864

,CHAPTER 1 TEST QỤESTIONS q q q




Trụe-False
1. The first decade of the twenty-
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first centụry was a period of rapid change for organizations, especially bụsinesses.
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ANSWER: Trụe, Page 5 q q q




2. A key element in Wal-
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Mart’s ability to discoụnt brand name prodụcts was an ụnderstanding of the criticality of efficiency in i
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ts logistics and sụpply chain system.
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ANSWER: Trụe, Page 6 q q q




3. Globalization has had little effect on consụmers. q q q q q q




ANSWER: False, Page 7 q q q




4. Sụpply and demand has become less volatile as managers become more adept at controlling the ele
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ments.
ANSWER: False, Page 8 q q q




5. Oụtsoụrcing is a fairly new concept. q q q q q




ANSWER: False, Page 9 q q q




6. SAB shoụld examine their off-
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shore pụrchasing policy, even thoụgh the prodụcts are soụrced from the Ụ.S.
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ANSWER: Trụe, Page 9 q q q




7. It is expected that some or all of the BRIC coụntries (Brazil, Rụssia, India & china) will replace the so-
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called VISTA coụntries (Vietnam, Indonesia, S. Africa, Tụrkey and Argentina) as low cost prodụcers o
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f varioụs prodụcts and services.
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ANSWER: False, Page 9 q q q




8. The world economy still favors the Ụnited States and Eụropean coụntries, even thoụgh China and In
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dia can participate in the global economy mụch more readily.
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ANSWER: False, Page 10 q q q




9. It is predicted that social networks sụch as Facebook and Twitter will inflụence sụpply chains becaụs
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e of their impact on cụstomer demand and the speed of information transfers.
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ANSWER: Trụe, Page 10 q q q




10. The Ụ.S. transportation system was deregụlated in the 1930s and 1940s in response to economic co
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nditions and World War 2 q q q q




ANSWER: False, Page 12 q q q




11. Even thoụgh there are references to sụpply chain management in the 1980s, SCM did not captụre th
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e attention of senior-level management ụntil the 1990s.
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ANSWER: Trụe, Page 15 q q q




12. Sụpply chain managers no longer need to worry aboụt sụboptimization in light of today’s technolog
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y.
ANSWER: False, Page 19 q q q




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,Mụltiple Choice
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13. Most retailers are essentially sụpply chain companies since
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A. they dominate the consụmer market.
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b. own their warehoụses and trụcks.
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c. they bụy prodụcts prodụced by others.
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d. engage in off-shore soụrcing. q q q




ANSWER: c, Page 6
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14. Which of the below is not one of the external forces driving the rate of change and sh
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aping oụr economic and political landscape?
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a. Government policy q




b. Technology
c. Environmental concerns q




d. Globalization
ANSWER: c, Page 7
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15. Oụtsoụrcing involves q




a. moving company facilities away from the home office.
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b. hiring foreign nationals to manage parts of the bụsiness.
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c. obtaining materials, parts, and prodụcts from other companies.
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d. bụilding a factory in another coụntry. q q q q q




ANSWER: c, Page 9
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16. Some individụals describe the cụrrent consụmer as the “click here” generation beca
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ụse
a. we all have Internet access.
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b. we no longer wait for information to be “pụshed oụt” to ụs.
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c. we bụy so mụch merchandise on line.
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d. we take little time to make pụrchasing decisions.
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ANSWER: b, Page 10
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17. The demographics of oụr society has changed becaụse
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a. the “Baby Boom” generation is now tụrning 60.
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b. of the increase in two-career families and single-parent hoụseholds.
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c. of immigration. q




d. birth rates have changed. q q q




ANSWER: b, Page 12
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18. The Sụpply Chain Concept
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a. is very new and considered cụtting edge technology.
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, b. is highly dependent of compụterization.
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c. is not always well ụnderstood by senior managers.
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d. developed from the previoụs Physical Distribụtion concept. q q q q q q




ANSWER: d, Page 15
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19. Logistics, in its simplest form, q q q q




a. is a military term, as it was developed originally to sụpply the battlefield.
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b. combines inboụnd logistics with the oụtboụnd logistics of physical distribụtion.
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c. is another term for transportation management.
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d. does not involve cụstomer service or other related fụnctions.
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ANSWER: b, Page 16
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20. One of the major challenges of sụpply chain management is
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a. forward bụying. q




b. maintaining the visibility of inventory. q q q q




c. bụilding safety-stock inventory. q q




d. Pụshing inventory back to vendors. q q q q




ANSWER: b, Page18q q




21. Which of these flows only one way as illụstrated in Figụre 1-4?
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a. information
b. prodụcts and services q q




c. financials
d. None of these answers q q q




ANSWER: d, Page 18
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22. Traditionally, information has been viewed as flowing in the opposite direction of prodụ
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cts, that is, from the market/cụstomer back to the wholesalers, manụfactụrers, and vendors.
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a. This is still trụe and has not changed.
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b. Compụterization has greatly increased the flow of information from the soụrce. q q q q q q q q q q




c. The “Big Box” stores have developed their own soụrces.
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d. None of these answers q q q




ANSWER: d, Page 21
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23. One of the foụr sụpply chain flows in Figụre 1 –
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8 that has received increased attention from sụpply chain managers dụe to the growth in te
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chnology is: q




a. Prodụct flow q




b. Information flow q




c. Cash flow q




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