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Analyzed Exam Questions (Actual Exam 2026-2027) Correct
Detailed & Verified ANSWERS (100% Accurate Solutions)
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True/False: A reduction in inventory costs is one reason for making rather than buying. -
ANSWERS-False
True/False: Outsourcing refers to transferring a firm's activities that have traditionally
been internal to external suppliers. -ANSWERS-True
True/False: Outsourcing is a form of specialization that allows the outsourcing firm to
focus on its critical success factors. -ANSWERS-True
True/False: Supply chain decisions are not generally strategic in nature, because
purchasing is an ordinary expense to most firms. -ANSWERS-False
True/False: The objective of the make-or-buy decision is to help identify the products
and services that can be obtained externally. -ANSWERS-True
True/False: Because service firms do not acquire goods and services externally, their
supply chain management issues are insignificant. -ANSWERS-False
True/False: Because the supply chain has become so electronic and automated,
opportunities for unethical behavior have been greatly reduced. -ANSWERS-False
True/False: With the many-suppliers strategy, the order usually goes to the supplier that
offers the best quality. -ANSWERS-False
,True/False: Developing long-term, "partnering" relationships with a few suppliers is a
long-standing American purchasing strategy. -ANSWERS-False
True/False: Vertical integration, whether forward or backward, requires the firm to
become more specialized. -ANSWERS-False
True/False: Operations managers are finding online auctions a fertile area for disposing
of discontinued inventory. -ANSWERS-True
True/False: The key to effective supply chain management is to get many suppliers to
compete with each other, in order to drive down prices. -ANSWERS-False
True/False: Even though a firm may have a low cost strategy, supply chain strategy can
select suppliers primarily on response or differentiation. -ANSWERS-False
True/False: The supply chain for a brewery would include raw ingredients such as hops
and barley but not the manufactured goods such as bottles and cans. -ANSWERS-
False
True/False: Supply chain management faces additional challenges, such as those
related to quality production and distribution systems, when companies enter growing
global markets. -ANSWERS-True
True/False: McDonald's was able to utilize existing plants and transportation systems in
preparing the supply chain for opening its stores in Moscow. -ANSWERS-False
True/False: When using the low-cost strategy for supply chain management, the firm
should invest aggressively to reduce production lead time. -ANSWERS-False
True/False: Savings in the supply chain exert more leverage as the firm has a lower net
profit margin. -ANSWERS-True
,True/False: A fast-food retailer that acquired a spice manufacturer would be practicing
backward integration. -ANSWERS-True
True/False: Keiretsus offer a middle ground between few suppliers and vertical
integration. -ANSWERS-True
True/False: In several industries, online exchanges have been created by buyers. -
ANSWERS-True
True/False: The bullwhip effect refers to the increasing fluctuations in orders that often
occur as orders move through the supply chain. -ANSWERS-True
True/False: Vendor Managed Inventory is a form of outsourcing. -ANSWERS-True
True/False: In the vendor evaluation phase, most companies will use the same list of
criteria and the same criteria weights. -ANSWERS-False
True/False: One classic type of negotiation strategy is the market-based price model. -
ANSWERS-True
True/False: Drop shipping results in time and shipping cost savings. -ANSWERS-True
True/False: The supply chain management opportunity called postponement involves
delaying deliveries to avoid accumulation of inventory at the customer's site. -
ANSWERS-False
True/False: Channel assembly, which sends components and modules to be assembled
by a distributor, treats these distributors as manufacturing partners. -ANSWERS-True
True/False: Blanket orders are a long-term purchase commitment to a supplier for items
that are to be delivered against short-term releases to ship. -ANSWERS-True
, True/False: Bar code and radio frequency technology, like that used to track UPS or
FedEx packages on their global journeys, can also be used to track objects within the
boundaries of a warehouse or shop. -ANSWERS-True
True/False: Waterways are an attractive distribution system when speed is more
important than shipping cost. -ANSWERS-False
True/False: Logistics management can provide a competitive advantage through
improved customer service. -ANSWERS-True
True/False: With the growth of just-in-time practices, railroads have made large gains in
the share of the nation's transport that they haul. -ANSWERS-False
True/False: Improvements in security, especially regarding the millions of shipping
containers that enter the U.S. each year, are being held back by the lack of
technological advances. -ANSWERS-False
True/False: Benchmark firms have driven down costs of supply chain performance. -
ANSWERS-True
The three major variations of online catalogs are
a. catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers
b. EDI, ERP, and ASN
c. cost-based, market-based, and competitive bidding
d. drop shipping, channel assembly, and postponement
e. all auction-based -ANSWERS-a. catalogs by vendors, catalogs by intermediaries,
and exchanges provided by buyers
Visibility throughout the supply chain is a requirement among supply chain members for
a. mutual agreement on goals