SOLUTIONS MANUAL
** All Chapters included
** Discussion Questions
** Exercises & Problems
** Cases
,Table of Contents are given below
Chapter 1. Introduction to Supply Chain Management
Chapter 2. Purchasing Management
Chapter 3. Creating and Managing Supplier Relationships
Chapter 4. Ethical and Sustainable Sourcing
Chapter 5. Demand Forecasting
Chapter 6. Resource Planning Systems
Chapter 7. Inventory Management
Chapter 8. Process Management—Lean and Six Sigma in the Supply Chain
Chapter 9. Domestic U.S. and Global Logistics
Chapter 10. Customer Relationship Management
Chapter 11. Global Location Decisions
Chapter 12. Service Response Logistics
Chapter 13. Supply Chain Process Integration
Chapter 14. Performance Measurement Along Supply Chains
,Solution and Answer Guide
WISNER/TAN/LEONG 9798214057705; 7TH EDITION; CHAPTER 1: PRINCIPLES SUPPLY CHAIN MANAGEMENT
BALANCED APPROACH
TABLE OF CONTENTS
Discussion Questions .........................................................................................................................1
CASES ................................................................................................................................................7
Supply Chain Management—The Big Picture ......................................................................................7
Appendix 1.1 The Beer Game .............................................................................................................8
Questions and Exercises .....................................................................................................................8
DISCUSSION QUESTIONS
1. Define the term supply chain management in your own words and list its most important activities. (LO1)
Answer: The Supply-Chain Council’s definition of supply chain management is “[m]anaging supply and
demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory
tracking, order entry and order management, distribution across all channels, and delivery to the
customer.”
These are also the most important activities; however, integration of key supply chain processes
might also be included in there.
2. Can a small business like a local sandwich or bicycle shop benefit from practicing supply chain
management? What aspects would they most likely concentrate on? (LO1)
Answer: Yes, any organization can implement at least some of the important concepts. A good place
to start is the rationalization or reduction of the supply base. Small businesses might also want to
concentrate on customers as a starting point.
3. Describe and draw a supply chain for a bicycle repair shop, and list the important supply chain members.
(LO2)
Answer: This will vary from student to student, but should include, for instance, parts suppliers,
bicycle suppliers, and other suppliers (e.g., helmet suppliers) and services (e.g., repair services) as 1 st-
tier suppliers and bicycle owners as 1st-tier customers.
4. Can a bicycle repair shop have more than one supply chain? Explain. (LO2)
Answer: Yes. Every repair item the firm stocks has potentially a different supply chain associated with
it.
5. What is a cold chain? Why did it become so important in 2020? (LO1)
1
, Answer: An alliance of companies that can monitor and protect the temperature of perishable
products in order to maintain quality and safety from the point of origin through distribution to the
final consumer. Cold chains became a popular news item in 2020 as COVID vaccines began to be
distributed globally by Pfizer and Moderna. The two vaccines must be stored and transported at sub-
zero temperatures.
6. How did the global pandemic impact supply chain management? (LO1)
Answer: In general, it made things more difficult, particularly for global supply chains—some
companies went bankrupt, retailers stopped buying regularly, ports shut down unexpectedly, and
many purchases shifted to online as people stayed home. Companies had to react quickly to the
changes. Some companies started buying domestically and carrying more inventory.
7. What roles do collaboration and trust play in the practice of supply chain management? (LO2)
Answer: This is essential for process integration. Sharing information and determining joint strategies
is part of the integration/collaboration process, and to do this, trust must be present between the
customer/focal firm/supplier.
8. Why do firms not just become more vertically integrated (e.g., buy out suppliers and customers), instead
of trying to manage their supply chains? (LO2)
Answer: This could cause a loss of focus and keep managers/employees from doing their core
competencies, resulting in loss of performance.
9. What types of organizations would benefit the most from practicing supply chain management? What
sorts of improvements could be expected? (LO2)
Answer: Firms with many suppliers, many complex products, large inventories, and many customers
(in other words, firms with many supply chains). Gains would be lower purchasing costs, lower
carrying costs, better product quality, and better customer service.
10. What are the benefits of supply chain management? (LO2)
Answer: Reduction of the bullwhip effect, better buyer/supplier relationships, better quality, lower
costs, better customer service, higher demand, and more profits.
11. Can nonprofit, educational, or government organizations benefit from supply chain management? How?
(LO3)
Answer: Yes. All services and organizations can benefit in terms of at least better customer service,
better inventory management, and cheaper purchase prices.
12. What does the term third-tier supplier mean? What about third-tier customer? What about the focal firm?
Provide examples. (LO3)
Answer: First-tier suppliers are the focal firm’s direct suppliers. 2nd-tier suppliers are the focal firm’s
suppliers’ direct suppliers. 3rd-tier suppliers are the focal firm’s suppliers’ suppliers’ suppliers.
Company A sells wood to Company B. Company B sells furniture to Company C. Company C sells the
furniture to Wal-Mart. Company A is Wal-Mart’s 3rd-tier supplier. Similarly, the focal firm’s customers’
customers’ customers are their 3rd-tier customers. The focal firm just refers to the firm in question, or
in the topic of discussion.
13. What is the bullwhip effect and what causes it? How would you try to reduce the bullwhip effect? (LO5)
2
** All Chapters included
** Discussion Questions
** Exercises & Problems
** Cases
,Table of Contents are given below
Chapter 1. Introduction to Supply Chain Management
Chapter 2. Purchasing Management
Chapter 3. Creating and Managing Supplier Relationships
Chapter 4. Ethical and Sustainable Sourcing
Chapter 5. Demand Forecasting
Chapter 6. Resource Planning Systems
Chapter 7. Inventory Management
Chapter 8. Process Management—Lean and Six Sigma in the Supply Chain
Chapter 9. Domestic U.S. and Global Logistics
Chapter 10. Customer Relationship Management
Chapter 11. Global Location Decisions
Chapter 12. Service Response Logistics
Chapter 13. Supply Chain Process Integration
Chapter 14. Performance Measurement Along Supply Chains
,Solution and Answer Guide
WISNER/TAN/LEONG 9798214057705; 7TH EDITION; CHAPTER 1: PRINCIPLES SUPPLY CHAIN MANAGEMENT
BALANCED APPROACH
TABLE OF CONTENTS
Discussion Questions .........................................................................................................................1
CASES ................................................................................................................................................7
Supply Chain Management—The Big Picture ......................................................................................7
Appendix 1.1 The Beer Game .............................................................................................................8
Questions and Exercises .....................................................................................................................8
DISCUSSION QUESTIONS
1. Define the term supply chain management in your own words and list its most important activities. (LO1)
Answer: The Supply-Chain Council’s definition of supply chain management is “[m]anaging supply and
demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory
tracking, order entry and order management, distribution across all channels, and delivery to the
customer.”
These are also the most important activities; however, integration of key supply chain processes
might also be included in there.
2. Can a small business like a local sandwich or bicycle shop benefit from practicing supply chain
management? What aspects would they most likely concentrate on? (LO1)
Answer: Yes, any organization can implement at least some of the important concepts. A good place
to start is the rationalization or reduction of the supply base. Small businesses might also want to
concentrate on customers as a starting point.
3. Describe and draw a supply chain for a bicycle repair shop, and list the important supply chain members.
(LO2)
Answer: This will vary from student to student, but should include, for instance, parts suppliers,
bicycle suppliers, and other suppliers (e.g., helmet suppliers) and services (e.g., repair services) as 1 st-
tier suppliers and bicycle owners as 1st-tier customers.
4. Can a bicycle repair shop have more than one supply chain? Explain. (LO2)
Answer: Yes. Every repair item the firm stocks has potentially a different supply chain associated with
it.
5. What is a cold chain? Why did it become so important in 2020? (LO1)
1
, Answer: An alliance of companies that can monitor and protect the temperature of perishable
products in order to maintain quality and safety from the point of origin through distribution to the
final consumer. Cold chains became a popular news item in 2020 as COVID vaccines began to be
distributed globally by Pfizer and Moderna. The two vaccines must be stored and transported at sub-
zero temperatures.
6. How did the global pandemic impact supply chain management? (LO1)
Answer: In general, it made things more difficult, particularly for global supply chains—some
companies went bankrupt, retailers stopped buying regularly, ports shut down unexpectedly, and
many purchases shifted to online as people stayed home. Companies had to react quickly to the
changes. Some companies started buying domestically and carrying more inventory.
7. What roles do collaboration and trust play in the practice of supply chain management? (LO2)
Answer: This is essential for process integration. Sharing information and determining joint strategies
is part of the integration/collaboration process, and to do this, trust must be present between the
customer/focal firm/supplier.
8. Why do firms not just become more vertically integrated (e.g., buy out suppliers and customers), instead
of trying to manage their supply chains? (LO2)
Answer: This could cause a loss of focus and keep managers/employees from doing their core
competencies, resulting in loss of performance.
9. What types of organizations would benefit the most from practicing supply chain management? What
sorts of improvements could be expected? (LO2)
Answer: Firms with many suppliers, many complex products, large inventories, and many customers
(in other words, firms with many supply chains). Gains would be lower purchasing costs, lower
carrying costs, better product quality, and better customer service.
10. What are the benefits of supply chain management? (LO2)
Answer: Reduction of the bullwhip effect, better buyer/supplier relationships, better quality, lower
costs, better customer service, higher demand, and more profits.
11. Can nonprofit, educational, or government organizations benefit from supply chain management? How?
(LO3)
Answer: Yes. All services and organizations can benefit in terms of at least better customer service,
better inventory management, and cheaper purchase prices.
12. What does the term third-tier supplier mean? What about third-tier customer? What about the focal firm?
Provide examples. (LO3)
Answer: First-tier suppliers are the focal firm’s direct suppliers. 2nd-tier suppliers are the focal firm’s
suppliers’ direct suppliers. 3rd-tier suppliers are the focal firm’s suppliers’ suppliers’ suppliers.
Company A sells wood to Company B. Company B sells furniture to Company C. Company C sells the
furniture to Wal-Mart. Company A is Wal-Mart’s 3rd-tier supplier. Similarly, the focal firm’s customers’
customers’ customers are their 3rd-tier customers. The focal firm just refers to the firm in question, or
in the topic of discussion.
13. What is the bullwhip effect and what causes it? How would you try to reduce the bullwhip effect? (LO5)
2
