MKTG 372 Exam 1 UPDATED ACTUAL
Questions and CORRECT Answers
(True/False) A supply chain could be more accurately described as a supply network or supply web. - CORRECT
ANSWER - TRUE
(True/False) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request. -
CORRECT ANSWER - TRUE
(True/False) A supply chain includes only the organizations directly involved in supplying components needed for
manufacturing. - CORRECT ANSWER - FALSE
(True/False) The objective of every supply chain is to maximize the overall value generated. - CORRECT
ANSWER - TRUE
(True/False) 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. - CORRECT ANSWER - FALSE
(True/False) The objective of customer order entry is to maintain a record of product receipt and complete payment. -
CORRECT ANSWER - FALSE
(True/False) The difference between the value of the product and its price remains with the customer as consumer
surplus. - CORRECT ANSWER - FALSE
(True/False) The supply chain planning phase exceeds the supply chain design phase in duration. - CORRECT
ANSWER - FALSE
(True/False) The goal during the supply chain operation phase is to exploit the reduction of uncertainty and optimize
performance. - CORRECT ANSWER - TRUE
(True/False) The replenishment cycle occurs at the retailer/distributor interface. - CORRECT ANSWER - TRUE
(True/False) The manufacturing cycle occurs at the distributor/manufacturer interface. - CORRECT ANSWER -
TRUE
(True/False) The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories
depending on whether they are initiated in response to or in anticipation of customer orders. - CORRECT
ANSWER - TRUE
(True/False) The production scheduling process in the manufacturing cycle is similar to the order entry process in the
replenishment cycle. - CORRECT ANSWER - TRUE
(True/False) The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories
depending on whether they are initiated in response to or in anticipation of customer orders. - CORRECT
ANSWER - FALSE
(True/False) The procurement cycle occurs at the manufacturer/supplier interface. - CORRECT ANSWER - TRUE
(True/False) The cycle view of the supply chain is useful when considering operational decisions, because it specifies the
roles and responsibilities of each member of the supply chain. - CORRECT ANSWER - TRUE
(True/False) Push processes may also be referred to as speculative processes. - CORRECT ANSWER - TRUE
(True/False) All supply chain activities within a firm belong to one of three macro processes — CRM, ISCM and SRM. -
CORRECT ANSWER - TRUE
(True/False) There is a close connection between the design and management of supply chain flows and the success of a
supply chain. - CORRECT ANSWER - TRUE
,(True/False) The drawback of Zara's responsive supply chain is that it tends to sell more products at markdown than most
of its competitors. - CORRECT ANSWER - FALSE
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. - CORRECT ANSWER - B
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. - CORRECT ANSWER - A
Which set of supply chain flows is correctly described?
A) Funds flow only upstream but information flows both upstream and downstream in a supply chain.
B) Product flows only downstream and information flows only upstream in a supply chain.
C) Information and product both flow upstream and downstream in a supply chain.
D) Funds flow both upstream and downstream but product flows only downstream in a supply chain. - CORRECT
ANSWER - C
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. - CORRECT ANSWER - D
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 - CORRECT ANSWER - A
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 - CORRECT ANSWER - B
For any supply chain, the source of revenue is generated by
A) efficient operations.
B) information flows.
C) the customer.
D) product flows. - CORRECT ANSWER - C
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. - CORRECT ANSWER - A
The objective of every supply chain is to
A) minimize the overall cost generated.
B) maximize the overall value generated.
C) minimize the cost to the manufacturer.
D) maximize the profit of the manufacturer. - CORRECT ANSWER - B
, Retailing in the United States is largely
A) push/pull.
B) profitable.
C) consolidated.
D) centralized. - CORRECT ANSWER - C
For any supply chain,
A) management rests solely in the hands of the manufacturer.
B) management rests solely in the hands of the distributor.
C) if each member focuses on profitability, the overall supply chain profit will be maximized.
D) there is only one source of revenue, the customer. - CORRECT ANSWER - D
Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries
were delivered to customer homes. They failed partly because of
A) low demand for their service.
B) slow inventory turnover compared to industry averages.
C) higher labor costs for picking orders.
D) poor quality products. - CORRECT ANSWER - C
A key issue facing Toyota is
A) developing an Internet marketing system.
B) whether to specialize in a particular market.
C) design of its global production and distribution network.
D) how to implement model changes. - CORRECT ANSWER - C
Walmart's supply chain features clusters of stores around distribution centers, which facilitates
A) high transportation costs.
B) frequent but inexpensive replenishment at the stores.
C) rapid design cycles from their R&D group.
D) sharing of information with suppliers. - CORRECT ANSWER - B
Which of these statements about Dell's supply chain is best?
A) Dell's supply chain surplus was largely driven by their negative shipping model.
B) Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those
models to retail outlets that carried their computers.
C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.
D) Dell's supply chain consists of only two members, Dell and the customer. - CORRECT ANSWER - C
The decision phases in a supply chain include
A) production scheduling.
B) customer relationship management.
C) supply chain operation.
D) supply chain orientation. - CORRECT ANSWER - C
A company would decide whether to outsource or perform a supply chain function in-house during the
A) planning phase.
B) design phase.
C) tactical phase.
D) operation phase. - CORRECT ANSWER - B
The supply chain strategy category would include a decision about A) which items in the warehouse will be shipped to
Malibu.
B) which warehouse will supply the Surf City location.
C) when the order should be shipped to the little old lady from Pasadena.
D) how large the warehouse in Kokomo should be. - CORRECT ANSWER - D
The profitability of a supply chain is impacted primarily by the
A) design, planning and operation categories of decisions.
B) operation category of decisions.
C) design and planning categories of decisions.
Questions and CORRECT Answers
(True/False) A supply chain could be more accurately described as a supply network or supply web. - CORRECT
ANSWER - TRUE
(True/False) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request. -
CORRECT ANSWER - TRUE
(True/False) A supply chain includes only the organizations directly involved in supplying components needed for
manufacturing. - CORRECT ANSWER - FALSE
(True/False) The objective of every supply chain is to maximize the overall value generated. - CORRECT
ANSWER - TRUE
(True/False) 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. - CORRECT ANSWER - FALSE
(True/False) The objective of customer order entry is to maintain a record of product receipt and complete payment. -
CORRECT ANSWER - FALSE
(True/False) The difference between the value of the product and its price remains with the customer as consumer
surplus. - CORRECT ANSWER - FALSE
(True/False) The supply chain planning phase exceeds the supply chain design phase in duration. - CORRECT
ANSWER - FALSE
(True/False) The goal during the supply chain operation phase is to exploit the reduction of uncertainty and optimize
performance. - CORRECT ANSWER - TRUE
(True/False) The replenishment cycle occurs at the retailer/distributor interface. - CORRECT ANSWER - TRUE
(True/False) The manufacturing cycle occurs at the distributor/manufacturer interface. - CORRECT ANSWER -
TRUE
(True/False) The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories
depending on whether they are initiated in response to or in anticipation of customer orders. - CORRECT
ANSWER - TRUE
(True/False) The production scheduling process in the manufacturing cycle is similar to the order entry process in the
replenishment cycle. - CORRECT ANSWER - TRUE
(True/False) The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories
depending on whether they are initiated in response to or in anticipation of customer orders. - CORRECT
ANSWER - FALSE
(True/False) The procurement cycle occurs at the manufacturer/supplier interface. - CORRECT ANSWER - TRUE
(True/False) The cycle view of the supply chain is useful when considering operational decisions, because it specifies the
roles and responsibilities of each member of the supply chain. - CORRECT ANSWER - TRUE
(True/False) Push processes may also be referred to as speculative processes. - CORRECT ANSWER - TRUE
(True/False) All supply chain activities within a firm belong to one of three macro processes — CRM, ISCM and SRM. -
CORRECT ANSWER - TRUE
(True/False) There is a close connection between the design and management of supply chain flows and the success of a
supply chain. - CORRECT ANSWER - TRUE
,(True/False) The drawback of Zara's responsive supply chain is that it tends to sell more products at markdown than most
of its competitors. - CORRECT ANSWER - FALSE
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. - CORRECT ANSWER - B
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. - CORRECT ANSWER - A
Which set of supply chain flows is correctly described?
A) Funds flow only upstream but information flows both upstream and downstream in a supply chain.
B) Product flows only downstream and information flows only upstream in a supply chain.
C) Information and product both flow upstream and downstream in a supply chain.
D) Funds flow both upstream and downstream but product flows only downstream in a supply chain. - CORRECT
ANSWER - C
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. - CORRECT ANSWER - D
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 - CORRECT ANSWER - A
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 - CORRECT ANSWER - B
For any supply chain, the source of revenue is generated by
A) efficient operations.
B) information flows.
C) the customer.
D) product flows. - CORRECT ANSWER - C
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. - CORRECT ANSWER - A
The objective of every supply chain is to
A) minimize the overall cost generated.
B) maximize the overall value generated.
C) minimize the cost to the manufacturer.
D) maximize the profit of the manufacturer. - CORRECT ANSWER - B
, Retailing in the United States is largely
A) push/pull.
B) profitable.
C) consolidated.
D) centralized. - CORRECT ANSWER - C
For any supply chain,
A) management rests solely in the hands of the manufacturer.
B) management rests solely in the hands of the distributor.
C) if each member focuses on profitability, the overall supply chain profit will be maximized.
D) there is only one source of revenue, the customer. - CORRECT ANSWER - D
Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries
were delivered to customer homes. They failed partly because of
A) low demand for their service.
B) slow inventory turnover compared to industry averages.
C) higher labor costs for picking orders.
D) poor quality products. - CORRECT ANSWER - C
A key issue facing Toyota is
A) developing an Internet marketing system.
B) whether to specialize in a particular market.
C) design of its global production and distribution network.
D) how to implement model changes. - CORRECT ANSWER - C
Walmart's supply chain features clusters of stores around distribution centers, which facilitates
A) high transportation costs.
B) frequent but inexpensive replenishment at the stores.
C) rapid design cycles from their R&D group.
D) sharing of information with suppliers. - CORRECT ANSWER - B
Which of these statements about Dell's supply chain is best?
A) Dell's supply chain surplus was largely driven by their negative shipping model.
B) Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those
models to retail outlets that carried their computers.
C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.
D) Dell's supply chain consists of only two members, Dell and the customer. - CORRECT ANSWER - C
The decision phases in a supply chain include
A) production scheduling.
B) customer relationship management.
C) supply chain operation.
D) supply chain orientation. - CORRECT ANSWER - C
A company would decide whether to outsource or perform a supply chain function in-house during the
A) planning phase.
B) design phase.
C) tactical phase.
D) operation phase. - CORRECT ANSWER - B
The supply chain strategy category would include a decision about A) which items in the warehouse will be shipped to
Malibu.
B) which warehouse will supply the Surf City location.
C) when the order should be shipped to the little old lady from Pasadena.
D) how large the warehouse in Kokomo should be. - CORRECT ANSWER - D
The profitability of a supply chain is impacted primarily by the
A) design, planning and operation categories of decisions.
B) operation category of decisions.
C) design and planning categories of decisions.
