Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
CHAPTER 1 TEST QUESTIONS
True-False
1. The first decade of the twenty-first century was a period of rapid change for organizations,
especially businesses.
ANSWER: True, Page 5
2. A key element in Wal-Mart's ability to discount brand name products was an
understanding of the criticality of efficiency in its logistics and supply chain system.
ANSWER: True, Page 5
3. Globalization has had little effect on consumers.
ANSWER: False, Page 7
4. Supply and demand has become less volatile as managers have become more adept at
controlling the elements.
ANSWER: False, Page 7
5. Outsourcing is a fairly new concept.
ANSWER: False, Page 8
6. The world economy still favors the United States and European countries, even though
China and India can participate in the global economy much more readily.
ANSWER: False
7. It is predicted that social networks such as Facebook and Twitter will influence supply
chains because of their impact on customer demand and the speed of information transfer.
ANSWER: True, Page 9
8. Supply chain managers no longer need to worry about suboptimization in light of today's
technology.
ANSWER: False, Page 18
9. Beginning in the late 1970s and into the 1980s, the US transportation industry was
deregulated. The net result was a less competitive environment.
ANSWER: False, Page 12
1-1
,Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
Multiple Choice
10. Most retailers are essentially supply chain companies since they:
a. dominate the consumer market.
b. own their warehouses and trucks.
c. buy products produced by others.
d. engage in off-shore sourcing.
ANSWER: c, Page 6
11. Which of the following is not one of the external forces driving the rate of change and
shaping our economic and political landscape?
a. Government policy
b. Technology
c. Environmental concerns
d. Globalization
ANSWER: c, Page 6
12. Outsourcing involves:
a. moving company facilities away from the home office.
b. hiring foreign nationals to manage parts of the business.
c. obtaining materials, parts, and products from other companies.
d. building a factory in another country.
ANSWER: c, Page 8
13. Some individuals describe the current consumer as the "click here" generation because
they:
a. all have Internet access.
b. no longer wait for information to be "pushed out" to them.
c. buy so much merchandise online.
d. take little time to make purchasing decisions.
ANSWER: b
14. Identify the proper sequence of the three "flows" in the supply chain.
1. Product
2. Cash
3. Information
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,Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
a. 1, 2, 3
b. 1, 3, 2
c. 2, 1, 3
d. 3, 2, 1
e. None of these answers
ANSWER: b, Page 17
15. The demographics of our society has changed because:
a. the "Baby Boom" generation is now turning 60.
b. of the increase in two-career families and single-parent households.
c. of immigration.
d. birth rates have changed.
ANSWER: b, Page 10
16. The Supply Chain Concept:
a. is very new and considered cutting edge technology.
b. is highly dependent on computerization.
c. is not always well understood by senior managers.
d. is developed from the previous Physical Distribution concept.
ANSWER: d, Page 12
17. Logistics, in its simplest form,
a. is a military term, as it was developed originally to supply the battlefield.
b. combines inbound logistics with the outbound logistics of physical
distribution.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
ANSWER: b, Page 13
18. One of the major challenges of supply chain management is:
a. forward buying.
b. maintaining the visibility of inventory.
c. building safety-stock inventory.
d. pushing inventory back to vendors.
ANSWER: b, Page 17
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, Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
19. Which of the following flows only one way as illustrated in Figure 1-4?
a. Information
b. Products and services
c. Financials
d. None of these answers
ANSWER: d, Page 15
20. Traditionally, information has been viewed as flowing in the opposite direction of
products, that is, from the market/customer back to the wholesalers, manufacturers, and
vendors.
a. This is still true and has not changed.
b. Computerization has greatly increased the flow of information from the source.
c. The "Big Box" stores have developed their own sources.
d. None of these answers.
ANSWER: d, Page 16
21. Which of the following is not an external factor that is shaping the economic and political
landscape?
a. Globalization
b. Government policy and regulation
c. Technology
d. Organizational division
ANSWER: d, Page 6
22. The challenge to develop and sustain an efficient and effective supply chain(s) requires
organizations to address a number of issues. Which of the following is not included in them?
a. Complexity
b. Inventory deployment
c. Inventory carrying costs
d. Technology
ANSWER: c, Page 18
23. Which of the following is not part of the Supply Chain network?
a. Plants
b. Stores
c. Terminals
1-4
Chapter 1 Test Bank
CHAPTER 1 TEST QUESTIONS
True-False
1. The first decade of the twenty-first century was a period of rapid change for organizations,
especially businesses.
ANSWER: True, Page 5
2. A key element in Wal-Mart's ability to discount brand name products was an
understanding of the criticality of efficiency in its logistics and supply chain system.
ANSWER: True, Page 5
3. Globalization has had little effect on consumers.
ANSWER: False, Page 7
4. Supply and demand has become less volatile as managers have become more adept at
controlling the elements.
ANSWER: False, Page 7
5. Outsourcing is a fairly new concept.
ANSWER: False, Page 8
6. The world economy still favors the United States and European countries, even though
China and India can participate in the global economy much more readily.
ANSWER: False
7. It is predicted that social networks such as Facebook and Twitter will influence supply
chains because of their impact on customer demand and the speed of information transfer.
ANSWER: True, Page 9
8. Supply chain managers no longer need to worry about suboptimization in light of today's
technology.
ANSWER: False, Page 18
9. Beginning in the late 1970s and into the 1980s, the US transportation industry was
deregulated. The net result was a less competitive environment.
ANSWER: False, Page 12
1-1
,Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
Multiple Choice
10. Most retailers are essentially supply chain companies since they:
a. dominate the consumer market.
b. own their warehouses and trucks.
c. buy products produced by others.
d. engage in off-shore sourcing.
ANSWER: c, Page 6
11. Which of the following is not one of the external forces driving the rate of change and
shaping our economic and political landscape?
a. Government policy
b. Technology
c. Environmental concerns
d. Globalization
ANSWER: c, Page 6
12. Outsourcing involves:
a. moving company facilities away from the home office.
b. hiring foreign nationals to manage parts of the business.
c. obtaining materials, parts, and products from other companies.
d. building a factory in another country.
ANSWER: c, Page 8
13. Some individuals describe the current consumer as the "click here" generation because
they:
a. all have Internet access.
b. no longer wait for information to be "pushed out" to them.
c. buy so much merchandise online.
d. take little time to make purchasing decisions.
ANSWER: b
14. Identify the proper sequence of the three "flows" in the supply chain.
1. Product
2. Cash
3. Information
1-2
,Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
a. 1, 2, 3
b. 1, 3, 2
c. 2, 1, 3
d. 3, 2, 1
e. None of these answers
ANSWER: b, Page 17
15. The demographics of our society has changed because:
a. the "Baby Boom" generation is now turning 60.
b. of the increase in two-career families and single-parent households.
c. of immigration.
d. birth rates have changed.
ANSWER: b, Page 10
16. The Supply Chain Concept:
a. is very new and considered cutting edge technology.
b. is highly dependent on computerization.
c. is not always well understood by senior managers.
d. is developed from the previous Physical Distribution concept.
ANSWER: d, Page 12
17. Logistics, in its simplest form,
a. is a military term, as it was developed originally to supply the battlefield.
b. combines inbound logistics with the outbound logistics of physical
distribution.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
ANSWER: b, Page 13
18. One of the major challenges of supply chain management is:
a. forward buying.
b. maintaining the visibility of inventory.
c. building safety-stock inventory.
d. pushing inventory back to vendors.
ANSWER: b, Page 17
1-3
, Coyle Supply Chain Management: A Logistics Perspective, 10th Edition
Chapter 1 Test Bank
19. Which of the following flows only one way as illustrated in Figure 1-4?
a. Information
b. Products and services
c. Financials
d. None of these answers
ANSWER: d, Page 15
20. Traditionally, information has been viewed as flowing in the opposite direction of
products, that is, from the market/customer back to the wholesalers, manufacturers, and
vendors.
a. This is still true and has not changed.
b. Computerization has greatly increased the flow of information from the source.
c. The "Big Box" stores have developed their own sources.
d. None of these answers.
ANSWER: d, Page 16
21. Which of the following is not an external factor that is shaping the economic and political
landscape?
a. Globalization
b. Government policy and regulation
c. Technology
d. Organizational division
ANSWER: d, Page 6
22. The challenge to develop and sustain an efficient and effective supply chain(s) requires
organizations to address a number of issues. Which of the following is not included in them?
a. Complexity
b. Inventory deployment
c. Inventory carrying costs
d. Technology
ANSWER: c, Page 18
23. Which of the following is not part of the Supply Chain network?
a. Plants
b. Stores
c. Terminals
1-4
