, TESTBANK FOR Principles of Supply Chain Management A Balanced
Approach 7th Edition Wisner
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!
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,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
True / False
1. 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
2. Supply chain management is concerned about how suppliers’ products are designed, produced, and transported.
a. True
b. False
ANSWER: True
3. 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
4. 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
5. 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
6. 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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
7. 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
8. 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
9. The foundation elements of supply chain management are supply, operations, customer service, and logistics.
a. True
b. False
ANSWER: False
10. Supply chain management activity includes managing the various compensation and benefit programs within an
organization.
a. True
b. False
ANSWER: False
11. 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
12. 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
13. Supply chain analytics can be used along the supply chain to schedule production according to expected supplier
deliveries.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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
15. 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
16. According to the textbook, environmental and social impacts are considered outside of supply chain management.
a. True
b. False
ANSWER: False
17. Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
a. True
b. False
ANSWER: False
18. Circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
a. True
b. False
ANSWER: True
19. The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
a. True
b. False
ANSWER: True
20. 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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
Multiple Choice
21. When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:
a. Discontinue buying the product and focus more on cheaper products.
b. Align itself with one of the suppliers to ensure a continued supply of the scarce item.
c. Purchase the item from a manufacturer who cuts corners and provides a product below market price.
d. All of these
ANSWER: b
22. Supply chain management includes the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities. It also includes:
a. Human resources and job design.
b. Selling and marketing products.
c. Coordination and collaboration with channel partners.
d. Program evaluation and review techniques.
ANSWER: c
23. Which of the following companies are indirectly involved in most supply chains?
a. Trucking and airfreight companies
b. Freight forwarders
c. Public warehousing firms
d. All of these
ANSWER: d
24. According to the textbook, conditions which must be present for successful supply chain management include:
a. High level of trust among firms.
b. Corporate contracts regarding performance expectations.
c. Short-term company-focused performance.
d. Benchmarking.
ANSWER: a
25. According to the text, the FOUR important elements of the supply chain are:
a. Purchasing, manufacturing, transportation, and retail stores.
b. Supply, operations, logistics, and integration.
c. Purchasing, manufacturing, logistics, and transportation.
d. Supply, operations, manufacturing, and distribution.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
26. Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
a. Progressive procurement.
b. Supplier management.
c. Right-shoring.
d. Supply chain performance management.
ANSWER: b
27. Which of the following activities would fall under the foundational element of operations?
a. Distribution network
b. Supplier management
c. Demand management
d. Third-party logistics services
ANSWER: c
28. One operational method for managing inventory is the implementation of a software system which can be referred to
as:
a. Customer relationship management (CRM).
b. Demand capacity tracking (DCT).
c. Material requirements planning (MRP).
d. Demand process reengineering (DPR).
ANSWER: c
29. Which of the following tends to reduce duplicate testing and inspections and the need for extensive supplier
evaluations?
a. Supplier certification
b. Right-shoring
c. Business process reengineering
d. Pilot production
ANSWER: a
30. According to the textbook, the order of product and service flow is as follows:
a. Raw material supplier, retailer, component manufacturer, wholesale distributor, end-product manufacturer,
and end-product consumer.
b. Raw material supplier, component manufacturer, retailer, wholesale distributor, end-product manufacturer,
and end-product consumer.
c. Component manufacturer, raw material supplier, retailer, wholesale distributor, end-product manufacturer,
and end-product consumer.
d. Raw material supplier, component manufacturer, end-product manufacturer, wholesale distributor, retailer,
and end-product consumer.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
31. Which of the following is a reverse logistics activity?
a. Delivering finished goods to your customer
b. Recycling products and components
c. Developing a collaborative relationship with your supplier
d. Managing the quality of products
ANSWER: b
32. Which of the following would be considered a third-party logistics provider?
a. A raw materials supplier
b. An intermediate component manufacturer
c. A firm that leases storage warehousing
d. An end product manufacturer
ANSWER: c
33. Which of the following statements is TRUE?
a. Supply chain management was invented by the auto manufacturing industry.
b. Strategic partnerships are seen as one of the foundations of supply chain management.
c. Purchasing is seen as the final and most difficult step in the supply chain.
d. Service response logistics is the digital distribution of services.
ANSWER: b
34. Which of the following abbreviations is NOT paired with its correct spelled-out phrase?
a. TQM—Total Quality Management
b. JIT—Just-in-Time
c. TLS—Third-party Logistics Services
d. ERP—Enterprise Resource Planning
ANSWER: c
35. Lean production is typically associated with which of the following company's production systems?
a. Procter and Gamble
b. Kraft
c. Samsung
d. Toyota
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
36. Customer relationship management, distribution network design, transportation management, and service response
logistics are all important issues that are most closely related to:
a. Purchasing.
b. Logistics.
c. Integration.
d. Manufacturing.
ANSWER: b
37. Which of the following strategies is usually employed by lean organizations in an effort to ensure continued quality
compliance among suppliers and with internal production facilities?
a. Six Sigma
b. MRP II
c. 3PL
d. CAPS
ANSWER: a
38. Which of the following can be defined as “the ability to meet the needs of current supply chain members without
hindering the ability to meet the needs of future generations”?
a. Reverse logistics
b. Enterprise resource planning
c. Sustainability
d. Strategic partnerships
ANSWER: c
39. According to the text, which of the following is considered a current trend in supply chain management?
a. Outsourcing the CRM function
b. Increasing supply chain visibility
c. Use of self-directed teams
d. None of these
ANSWER: b
40. Which of the following practices was introduced in the 1990s as a popular way of developing radically new business
processes in an effort to reduce waste and increase performance?
a. Process integration
b. Benchmarking
c. Business process reengineering
d. Vertical integration
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
41. The term “supply chain management” and the field of study it represents today seem to have emerged in the:
a. 1960s.
b. 1970s.
c. 1980s.
d. 1990s.
ANSWER: c
42. An example of an internal or external event that causes a disruption or failure of supply chain operations is:
a. Supply chain risk.
b. Back-shoring.
c. Six Sigma quality management .
d. The COVID-19 pandemic.
ANSWER: d
43. Which of the following can happen as a result of the bullwhip effect?
a. Increase in defective products
b. Excess costs for each firm in a supply chain
c. Decreased levels of safety stock
d. Quicker distribution to warehouses
ANSWER: b
44. The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier
forecasts and cause production planning problems is known as:
a. Demand shock.
b. Process integration.
c. Back-shoring.
d. The bullwhip effect.
ANSWER: d
45. Which of the following statements demonstrates the bullwhip effect?
a. Nike includes safety stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier to
increase their normal output for Nike.
b. Nike products are so successful that it adds a new retailer for distribution.
c. Nike produces a defective product and thus realizes an excessive increase in consumer returns.
d. Nike is unhappy with the performance of a distributor, which causes a chain reaction of replacements to
companies involved in its supply chain.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 8
Approach 7th Edition Wisner
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!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
True / False
1. 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
2. Supply chain management is concerned about how suppliers’ products are designed, produced, and transported.
a. True
b. False
ANSWER: True
3. 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
4. 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
5. 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
6. 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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
7. 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
8. 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
9. The foundation elements of supply chain management are supply, operations, customer service, and logistics.
a. True
b. False
ANSWER: False
10. Supply chain management activity includes managing the various compensation and benefit programs within an
organization.
a. True
b. False
ANSWER: False
11. 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
12. 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
13. Supply chain analytics can be used along the supply chain to schedule production according to expected supplier
deliveries.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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
15. 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
16. According to the textbook, environmental and social impacts are considered outside of supply chain management.
a. True
b. False
ANSWER: False
17. Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
a. True
b. False
ANSWER: False
18. Circular economy refers to an economic system aimed at eliminating waste and the continual use of resources.
a. True
b. False
ANSWER: True
19. The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
a. True
b. False
ANSWER: True
20. 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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
Multiple Choice
21. When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:
a. Discontinue buying the product and focus more on cheaper products.
b. Align itself with one of the suppliers to ensure a continued supply of the scarce item.
c. Purchase the item from a manufacturer who cuts corners and provides a product below market price.
d. All of these
ANSWER: b
22. Supply chain management includes the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities. It also includes:
a. Human resources and job design.
b. Selling and marketing products.
c. Coordination and collaboration with channel partners.
d. Program evaluation and review techniques.
ANSWER: c
23. Which of the following companies are indirectly involved in most supply chains?
a. Trucking and airfreight companies
b. Freight forwarders
c. Public warehousing firms
d. All of these
ANSWER: d
24. According to the textbook, conditions which must be present for successful supply chain management include:
a. High level of trust among firms.
b. Corporate contracts regarding performance expectations.
c. Short-term company-focused performance.
d. Benchmarking.
ANSWER: a
25. According to the text, the FOUR important elements of the supply chain are:
a. Purchasing, manufacturing, transportation, and retail stores.
b. Supply, operations, logistics, and integration.
c. Purchasing, manufacturing, logistics, and transportation.
d. Supply, operations, manufacturing, and distribution.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
26. Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
a. Progressive procurement.
b. Supplier management.
c. Right-shoring.
d. Supply chain performance management.
ANSWER: b
27. Which of the following activities would fall under the foundational element of operations?
a. Distribution network
b. Supplier management
c. Demand management
d. Third-party logistics services
ANSWER: c
28. One operational method for managing inventory is the implementation of a software system which can be referred to
as:
a. Customer relationship management (CRM).
b. Demand capacity tracking (DCT).
c. Material requirements planning (MRP).
d. Demand process reengineering (DPR).
ANSWER: c
29. Which of the following tends to reduce duplicate testing and inspections and the need for extensive supplier
evaluations?
a. Supplier certification
b. Right-shoring
c. Business process reengineering
d. Pilot production
ANSWER: a
30. According to the textbook, the order of product and service flow is as follows:
a. Raw material supplier, retailer, component manufacturer, wholesale distributor, end-product manufacturer,
and end-product consumer.
b. Raw material supplier, component manufacturer, retailer, wholesale distributor, end-product manufacturer,
and end-product consumer.
c. Component manufacturer, raw material supplier, retailer, wholesale distributor, end-product manufacturer,
and end-product consumer.
d. Raw material supplier, component manufacturer, end-product manufacturer, wholesale distributor, retailer,
and end-product consumer.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
31. Which of the following is a reverse logistics activity?
a. Delivering finished goods to your customer
b. Recycling products and components
c. Developing a collaborative relationship with your supplier
d. Managing the quality of products
ANSWER: b
32. Which of the following would be considered a third-party logistics provider?
a. A raw materials supplier
b. An intermediate component manufacturer
c. A firm that leases storage warehousing
d. An end product manufacturer
ANSWER: c
33. Which of the following statements is TRUE?
a. Supply chain management was invented by the auto manufacturing industry.
b. Strategic partnerships are seen as one of the foundations of supply chain management.
c. Purchasing is seen as the final and most difficult step in the supply chain.
d. Service response logistics is the digital distribution of services.
ANSWER: b
34. Which of the following abbreviations is NOT paired with its correct spelled-out phrase?
a. TQM—Total Quality Management
b. JIT—Just-in-Time
c. TLS—Third-party Logistics Services
d. ERP—Enterprise Resource Planning
ANSWER: c
35. Lean production is typically associated with which of the following company's production systems?
a. Procter and Gamble
b. Kraft
c. Samsung
d. Toyota
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
36. Customer relationship management, distribution network design, transportation management, and service response
logistics are all important issues that are most closely related to:
a. Purchasing.
b. Logistics.
c. Integration.
d. Manufacturing.
ANSWER: b
37. Which of the following strategies is usually employed by lean organizations in an effort to ensure continued quality
compliance among suppliers and with internal production facilities?
a. Six Sigma
b. MRP II
c. 3PL
d. CAPS
ANSWER: a
38. Which of the following can be defined as “the ability to meet the needs of current supply chain members without
hindering the ability to meet the needs of future generations”?
a. Reverse logistics
b. Enterprise resource planning
c. Sustainability
d. Strategic partnerships
ANSWER: c
39. According to the text, which of the following is considered a current trend in supply chain management?
a. Outsourcing the CRM function
b. Increasing supply chain visibility
c. Use of self-directed teams
d. None of these
ANSWER: b
40. Which of the following practices was introduced in the 1990s as a popular way of developing radically new business
processes in an effort to reduce waste and increase performance?
a. Process integration
b. Benchmarking
c. Business process reengineering
d. Vertical integration
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
41. The term “supply chain management” and the field of study it represents today seem to have emerged in the:
a. 1960s.
b. 1970s.
c. 1980s.
d. 1990s.
ANSWER: c
42. An example of an internal or external event that causes a disruption or failure of supply chain operations is:
a. Supply chain risk.
b. Back-shoring.
c. Six Sigma quality management .
d. The COVID-19 pandemic.
ANSWER: d
43. Which of the following can happen as a result of the bullwhip effect?
a. Increase in defective products
b. Excess costs for each firm in a supply chain
c. Decreased levels of safety stock
d. Quicker distribution to warehouses
ANSWER: b
44. The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier
forecasts and cause production planning problems is known as:
a. Demand shock.
b. Process integration.
c. Back-shoring.
d. The bullwhip effect.
ANSWER: d
45. Which of the following statements demonstrates the bullwhip effect?
a. Nike includes safety stock of 5,000 units of shoestrings in its demand forecast causing its shoestring supplier to
increase their normal output for Nike.
b. Nike products are so successful that it adds a new retailer for distribution.
c. Nike produces a defective product and thus realizes an excessive increase in consumer returns.
d. Nike is unhappy with the performance of a distributor, which causes a chain reaction of replacements to
companies involved in its supply chain.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 8
