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,Chapter 1: Introduction to Supply Chain Management
Multiple Choice
1. SCM involves the design and management of three primary flows:
a) Products, information, funds
b) Suppliers, customers, manufacturers
c) Distributors, retailers, customers
d) Logistics, operations, marketing
e) Responsiveness, reliability, relationship management
Ans: a
Section: What Is Supply Chain Management (SCM)?
Level: Easy
2. Stages of supply chain management include suppliers, producers, distributors, retailers, and
what?
a) Financial flows
b) Customers
c) Reverse logistics
d) Sustainability
e) None of the above
Ans: b
Section: What Is Supply Chain Management (SCM)?
Level: Medium
3. Another name for a supply chain is:
a) Supply network
b) Transportation chain
c) Value chain
d) Customer chain
e) Product chain
Ans: c
Section: What Is Supply Chain Management (SCM)?
Level: Easy
Supply Chain Management 4th 1 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,4. Examples of “upstream” players in a supply chain include:
a) Suppliers
b) Customers
c) Retailers
d) Distribution centers
e) Outbound transportation providers
Ans: a
Section: What Is Supply Chain Management (SCM)?
Level: Easy
5. Examples of “focal firms” players in a supply chain include:
a) Suppliers
b) Manufacturers
c) Retailers
d) Inbound transportation providers
e) Accountants
Ans: b
Section: What Is Supply Chain Management (SCM)?
Level: Easy
6. Examples of “downstream” players in a supply chain include:
a) Suppliers
b) Manufacturers
c) Retailers
d) Inbound transportation providers
e) Accountants
Ans: c
Section: What Is Supply Chain Management (SCM)?
Level: Easy
Supply Chain Management 4th 2 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,7. Three overriding SCM activities within and between firms include:
a) Marketing, sourcing, logistics
b) Suppliers, customers, manufacturers
c) Products, information, funds
d) Coordination, information sharing, collaboration
e) Responsiveness, reliability, relationship management
Ans: d
Section: SCM Activities
Level: Medium
8. The growing number and acceptance of customer returns has created an area of SCM called:
a) Order fulfillment
b) Distribution management
c) Reverse logistics
d) Sustainability
e) None of the above
Ans: c
Section: Managing Flows Through the Supply Chain
Level: Easy
9. A result of effective information flow through the supply chain is what?
a) Improved coordination and collaboration between supply chain partners
b) Reduction in the amount of inventory across the supply chain
c) Reduction of the bullwhip effect
d) Compression of the supply chain from a time standpoint
e) All of the above
Ans: e
Section: Managing Flows Through the Supply Chain
Level: Medium
Supply Chain Management 4th 3 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,10. An accelerated flow of funds through the supply chain can improve a firm’s profitability by:
a) Increasing interest rates
b) Customers cannot be invoiced more quickly
c) Creating a positive cash flow provides financial opportunity
d) Increasing working capital needs
e) None of the above
Ans: c
Section: Managing Flows Through the Supply Chain
Level: Medium
11. In a simplified supply chain, financial flow is often viewed as flowing _____ in the supply
chain as payment for products and services received.
a) forward
b) in parallel
c) backwards
d) forwards and backwards
Ans: c
Section: Managing Flows Through the Supply Chain
Level: Easy
12. Distortion and inaccurate information as it moves from the retailer back through the supply
chain is known as:
a) Early supplier involvement
b) Bullwhip effect
c) Supply chain compression
d) Reverse logistics
e) None of the above
Ans: b
Section: The Bullwhip Effect
Level: Easy
Supply Chain Management 4th 4 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,13. SCM is a dynamic process and involves the constant flow of all of the following except
which between different entities of the supply chain?
a) Information
b) Products
c) Funds
d) Raw materials
e) All of the above
Ans: d
Section: Customer Focus
Level: Easy
14. An example of intraorganizational integration is:
a) Marketing sharing promotion plans with operations
b) Independent retailer sharing point-of-sale data with manufacturer
c) Supplier informing manufacturer of a component defect
d) Retailers making sure returns flow back to the manufacturer
Ans: a
Section: Intraorganizational Integration
Level: Easy
15. An example of intraorganizational integration is:
a) Operations informing logistics of production plans
b) Independent retailer sharing point-of-sale data with manufacturer
c) Supplier informing manufacturer of a component defect
d) Purchasing making sure the organization meets it US purchasing quotas
e) Operations focusing on improving the efficiency of the operating system
Ans: a
Section: Intraorganizational Integration
Level: Easy
Supply Chain Management 4th 5 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,16. The primary role of marketing in an organization is to link the organization to its what?
a) Suppliers
b) Operations
c) Customers
d) Finance
e) None of the above
Ans: c
Section: Intraorganizational Integration
Level: Easy
17. Challenges to developing a systems thinking viewpoint in an organization include:
a) Competing goals and incentives
b) Segmented organizational structure
c) Lack of information sharing
d) ‘siloed” decision-making
e) All of the above
Ans: e
Section: Intraorganizational Integration
Level: Medium
18. Why have partnerships and alliances across enterprises become so important to SCM?
a) Technology is expensive
b) Companies want external supply chain partners to hold more risk
c) “Early supplier involvement” is simple to implement
d) Collaboration enables long-term viability and success in a competitive global environment
e) a and c
Ans: d
Section: page Cross‐Enterprise Integration
Level: Medium
Supply Chain Management 4th 6 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
,19. The primary difference between logistics and SCM is:
a) SCM is a more popular term
b) Logistics is more strategic in nature
c) There is no difference
d) SCM takes a more strategic and managerial focus
e) Logistics is more complex
Ans: d
Section: SCM versus Logistics
Level: Medium
20. Logistics consists of what?
a) Collaboration between supply chain partners in a strategic effort to achieve superior
competitiveness.
b) Interfacing with purchasing to make sure the correct components reach the production floor.
c) The tasks involved in moving and positioning inventory throughout the supply chain.
d) Keeping executives up-to-date with the manufacturing operations.
e) All of the above
Ans: c
Section: SCM versus Logistics
Level: Easy
21. Factors driving the growth of SCM include:
a) Better intra-organizational coordination
b) Customer sophistication
c) Early supplier involvement
d) Reverse logistics capabilities
e) Improved relationship management between firms
Ans: b
Section: The Rise of SCM
Level: Medium
Supply Chain Management 4th 7 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons
, 22. Interest in SCM has rapidly grown over the years, as it has proven to be a necessary
ingredient for successful global competition. A number of forces have contributed to this
trend. Which of the following is not one of those forces?
a) Companies have realized large cost savings by working with their suppliers to consolidate
shipments and by coordinating with shipping companies.
b) Companies have discovered the large magnitude of savings that can be achieved by planning
and managing their supply chain more effectively.
c) Advances in information technologies have provided access to comprehensive data from all
components of the supply chain.
d) Improvement in transportation methods has led to a reduction in transportation costs, while
significantly increasing speed of delivery to multiple locations.
e) All of the above
Ans: a
Section: The Rise of SCM
Level: Medium
23. How has greater customer affluence increased the importance of SCM?
a) Customers demand lower cost goods from China
b) The internet empowered consumers with information
c) Customers wanted more standardized, mass-produced products
d) Customers wanted wider product choices
e) All of the above
Ans: d
Section: The Rise of SCM
Level: Medium
24. A demand-driven supply chain is focused on which SCM characteristic?
a) Relationship management
b) Collaboration
c) Coordination
d) Responsiveness
e) Risk management
Ans: d
Section: Responsiveness
Level: Difficult
Supply Chain Management 4th 8 Chapter 1 Test Bank
Copyright 2025 John Wiley and Sons