TEST BANK
Principles of Supply Chain Management, 7th Edition Wisner
Joel D. Wisner, Keah-Choon Tan, G. Keong Leong
Includes All Chapters (1 to 14 )
• Complete Chapter-by-Chapter Test Bank (Answers Included for all)
• Multiple Choice Questions (MCQs)
• True False (T/F)
• Short Essay Questions / Open-ended Questions
,Chap 01 7e - Wisner
Indicate whether the statement is true or false.
1. According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers,
end-product manufacturers, wholesale distributors, retailers, and end-product consumers.
a. True
b. False
ANSWER: True
2. One example of supply chain management activities is working with computer-aided design (CAD) programs to
ensure continued supply of a scarce item.
a. True
b. False
ANSWER: False
3. Many large firms are moving to in-house vertically integrated structures where they have more control over each
business unit.
a. True
b. False
ANSWER: False
4. The foundation elements of supply chain management are supply, operations, customer service, and logistics.
a. True
b. False
ANSWER: False
5. Supply chain analytics can be used along the supply chain to schedule production according to expected supplier
deliveries.
a. True
b. False
ANSWER: True
6. According to the textbook, environmental and social impacts are considered outside of supply chain management.
a. True
b. False
ANSWER: False
7. Circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
a. True
b. False
ANSWER: True
Page 1
,Name: Class: Date:
Chap 01 7e - Wisner
8. The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
a. True
b. False
ANSWER: True
9. Supply chain management is concerned about how suppliers’ products are designed, produced, and transported.
a. True
b. False
ANSWER: True
10. One definition of supply chain management is "Coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third-party service providers, and customers."
a. True
b. False
ANSWER: True
11. 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.
a. True
b. False
ANSWER: True
12. Trade estimates suggest that the bullwhip effect results in excess costs on the order of 50 percent for each firm
in a supply chain.
a. True
b. False
ANSWER: False
13. Firms with many suppliers, large system inventories, and highly valued customers with large purchasing budgets
can lower purchasing and inventory carrying costs and create better quality products with higher levels of
customer service.
a. True
b. False
ANSWER: True
14. 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.
a. True
b. False
ANSWER: False
Page 2
, Name: Class: Date:
Chap 01 7e - Wisner
15. Supply chain management activity includes managing the various compensation and benefit programs within an
organization.
a. True
b. False
ANSWER: False
16. Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
a. True
b. False
ANSWER: False
17. 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."
a. True
b. False
ANSWER: False
18. 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.
a. True
b. False
ANSWER: False
19. According to the textbook, a supply chain's end customers are the only true source of income for all supply chain
organizations.
a. True
b. False
ANSWER: True
20. According to the textbook, the keys to successful supply chain management include trust, cooperation,
collaboration, and honest, accurate communications between supply chain partners.
a. True
b. False
ANSWER: True
Page 3
Principles of Supply Chain Management, 7th Edition Wisner
Joel D. Wisner, Keah-Choon Tan, G. Keong Leong
Includes All Chapters (1 to 14 )
• Complete Chapter-by-Chapter Test Bank (Answers Included for all)
• Multiple Choice Questions (MCQs)
• True False (T/F)
• Short Essay Questions / Open-ended Questions
,Chap 01 7e - Wisner
Indicate whether the statement is true or false.
1. According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers,
end-product manufacturers, wholesale distributors, retailers, and end-product consumers.
a. True
b. False
ANSWER: True
2. One example of supply chain management activities is working with computer-aided design (CAD) programs to
ensure continued supply of a scarce item.
a. True
b. False
ANSWER: False
3. Many large firms are moving to in-house vertically integrated structures where they have more control over each
business unit.
a. True
b. False
ANSWER: False
4. The foundation elements of supply chain management are supply, operations, customer service, and logistics.
a. True
b. False
ANSWER: False
5. Supply chain analytics can be used along the supply chain to schedule production according to expected supplier
deliveries.
a. True
b. False
ANSWER: True
6. According to the textbook, environmental and social impacts are considered outside of supply chain management.
a. True
b. False
ANSWER: False
7. Circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
a. True
b. False
ANSWER: True
Page 1
,Name: Class: Date:
Chap 01 7e - Wisner
8. The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
a. True
b. False
ANSWER: True
9. Supply chain management is concerned about how suppliers’ products are designed, produced, and transported.
a. True
b. False
ANSWER: True
10. One definition of supply chain management is "Coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third-party service providers, and customers."
a. True
b. False
ANSWER: True
11. 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.
a. True
b. False
ANSWER: True
12. Trade estimates suggest that the bullwhip effect results in excess costs on the order of 50 percent for each firm
in a supply chain.
a. True
b. False
ANSWER: False
13. Firms with many suppliers, large system inventories, and highly valued customers with large purchasing budgets
can lower purchasing and inventory carrying costs and create better quality products with higher levels of
customer service.
a. True
b. False
ANSWER: True
14. 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.
a. True
b. False
ANSWER: False
Page 2
, Name: Class: Date:
Chap 01 7e - Wisner
15. Supply chain management activity includes managing the various compensation and benefit programs within an
organization.
a. True
b. False
ANSWER: False
16. Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
a. True
b. False
ANSWER: False
17. 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."
a. True
b. False
ANSWER: False
18. 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.
a. True
b. False
ANSWER: False
19. According to the textbook, a supply chain's end customers are the only true source of income for all supply chain
organizations.
a. True
b. False
ANSWER: True
20. According to the textbook, the keys to successful supply chain management include trust, cooperation,
collaboration, and honest, accurate communications between supply chain partners.
a. True
b. False
ANSWER: True
Page 3
