, TESTBANK for Principles of Supply Chain
Management A Balanced Approach 6th Edition by
Jeffrey D. Camm
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our 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
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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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. Highly valued customers with large purchasing budgets who achieve moderate supply chain management success
have been known to 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
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. Supply Chain Management activities work with computer-aided design 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.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Introduction to 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
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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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, retail stores
b. Supply, operations, logistics, integration
c. Purchasing, manufacturing, logistics, transportation
d. Supply, operations, manufacturing, distribution
ANSWER: b
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 operation?
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
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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,
end-product consumer
b. Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer,
end-product consumer
c. Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer,
end-product consumer
d. Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer,
end-product consumer
ANSWER: d
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 acronyms is NOT paired with its correct "translation"?
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?
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
a. Procter and Gamble
b. Kraft
c. Samsung
d. Toyota
ANSWER: d
36. Customer relationship management, distribution network, 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. The following strategy 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. Indicate 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. Developed in the 1990s as a popular way of developing radically new business processes in an effort to reduce waste
and increase performance is referred to as:
a. Process integration
b. Benchmarking
c. Business process reengineering
d. Vertical integration
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
41. The term Supply Chain Management and the field of study it represents today seems 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. 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. Supply chain management
b. Process integration
c. Back-shoring
d. Bullwhip effect
ANSWER: d
45. The following is an example of 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
Subjective Short Answer
46. There are many definitions for supply chain management. a. Define supply chain management in your own words. b.
What is the goal of supply chain management?
ANSWER: a. Supply chain management is managing the activities involved in sourcing, production, and
distribution of products. It is also involved in coordinating or integrating a number of goods- and
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
services-related activities among supply chain participants.
b. The goal of supply chain management typically involves improving operating efficiencies,
increasing quality of products and strengthening customer service among the collaborating
organizations.
47. Give three examples of benefits that may be realized by a firm that successfully manages its supply chain.
ANSWER: Benefits from successfully managing the supply chain
a. Lower purchasing and inventory carrying costs
b. Better product quality
c. Higher levels of customer service
d. Increase in sales
48. Briefly explain how technology has impacted supply chain management. Give three examples.
ANSWER: How technology has impacted supply chain management
a. Shipments can be tracked and monitored using technology and alerts sent
to shippers about items that are in transit and delivered.
b. Technology can be used to help a facility make more economic use of
their utilities such as automated controls for lighting and air conditioning.
c. RFID and automated storage and retrieval systems can be used to move
product through a warehouse
d. Inventory visibility is made easier by technology and the use of MRP and
ERP systems.
49. Briefly discuss three current trends in supply chain management:
ANSWER: a. Use of supply chain analytics which refers to examining
raw supply chain data and then reaching conclusions or
making predictions with the information.
b. Improving supply chain sustainability which involves
meeting the needs of current supply chain members
without hindering the ability to meet the needs of future
generations in terms of economic, environmental, and
social challenges.
c. Increasing supply chain visibility so manufacturers,
business partners, and customers know exactly where
products are, at any point in the supply chain.
Essay
50. Discuss the differences between supply chain partnerships of the past and those that have developed today.
ANSWER: In the past, supply chain partnerships did not really exist.
∙ Supply chains were seen as a series of independent organizations that were looked on, to
perform their core competency for the sake of their downstream "partner."
∙ Firms in the past did not seek to share information.
∙ Buyers of supplies and services instead usually were reduced to bargain hunters. Low cost
was valued over quality.
∙ Traditional relationships were also characterized by a large number of partners and short-
term contracts. This put an emphasis on low cost that would provide short-term profits
Copyright Cengage Learning. Powered by Cognero. Page 8
Management A Balanced Approach 6th Edition by
Jeffrey D. Camm
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our 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
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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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. Highly valued customers with large purchasing budgets who achieve moderate supply chain management success
have been known to 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
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. Supply Chain Management activities work with computer-aided design 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.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Introduction to 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
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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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, retail stores
b. Supply, operations, logistics, integration
c. Purchasing, manufacturing, logistics, transportation
d. Supply, operations, manufacturing, distribution
ANSWER: b
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 operation?
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
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
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,
end-product consumer
b. Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer,
end-product consumer
c. Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer,
end-product consumer
d. Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer,
end-product consumer
ANSWER: d
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 acronyms is NOT paired with its correct "translation"?
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?
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
a. Procter and Gamble
b. Kraft
c. Samsung
d. Toyota
ANSWER: d
36. Customer relationship management, distribution network, 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. The following strategy 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. Indicate 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. Developed in the 1990s as a popular way of developing radically new business processes in an effort to reduce waste
and increase performance is referred to as:
a. Process integration
b. Benchmarking
c. Business process reengineering
d. Vertical integration
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
41. The term Supply Chain Management and the field of study it represents today seems 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. 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. Supply chain management
b. Process integration
c. Back-shoring
d. Bullwhip effect
ANSWER: d
45. The following is an example of 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
Subjective Short Answer
46. There are many definitions for supply chain management. a. Define supply chain management in your own words. b.
What is the goal of supply chain management?
ANSWER: a. Supply chain management is managing the activities involved in sourcing, production, and
distribution of products. It is also involved in coordinating or integrating a number of goods- and
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Introduction to Supply Chain Management
services-related activities among supply chain participants.
b. The goal of supply chain management typically involves improving operating efficiencies,
increasing quality of products and strengthening customer service among the collaborating
organizations.
47. Give three examples of benefits that may be realized by a firm that successfully manages its supply chain.
ANSWER: Benefits from successfully managing the supply chain
a. Lower purchasing and inventory carrying costs
b. Better product quality
c. Higher levels of customer service
d. Increase in sales
48. Briefly explain how technology has impacted supply chain management. Give three examples.
ANSWER: How technology has impacted supply chain management
a. Shipments can be tracked and monitored using technology and alerts sent
to shippers about items that are in transit and delivered.
b. Technology can be used to help a facility make more economic use of
their utilities such as automated controls for lighting and air conditioning.
c. RFID and automated storage and retrieval systems can be used to move
product through a warehouse
d. Inventory visibility is made easier by technology and the use of MRP and
ERP systems.
49. Briefly discuss three current trends in supply chain management:
ANSWER: a. Use of supply chain analytics which refers to examining
raw supply chain data and then reaching conclusions or
making predictions with the information.
b. Improving supply chain sustainability which involves
meeting the needs of current supply chain members
without hindering the ability to meet the needs of future
generations in terms of economic, environmental, and
social challenges.
c. Increasing supply chain visibility so manufacturers,
business partners, and customers know exactly where
products are, at any point in the supply chain.
Essay
50. Discuss the differences between supply chain partnerships of the past and those that have developed today.
ANSWER: In the past, supply chain partnerships did not really exist.
∙ Supply chains were seen as a series of independent organizations that were looked on, to
perform their core competency for the sake of their downstream "partner."
∙ Firms in the past did not seek to share information.
∙ Buyers of supplies and services instead usually were reduced to bargain hunters. Low cost
was valued over quality.
∙ Traditional relationships were also characterized by a large number of partners and short-
term contracts. This put an emphasis on low cost that would provide short-term profits
Copyright Cengage Learning. Powered by Cognero. Page 8
