Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 1 Test Bank
CHAPTER 1 TEST QUESTIONS
True-False
1. The first decade of the
... [Show More] 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 6
3. Globalization has had little effect on consumers.
ANSWER: False, Page 7
4. Supply and demand has become less volatile as managers become more adept at
controlling the elements.
ANSWER: False, Page 8
5. Outsourcing is a fairly new concept.
ANSWER: False, Page 9
6. SAB should examine their off-shore purchasing policy, even though the products
are sourced from the U.S.
ANSWER: True, Page 9
ANSWER: False, Page 9
ANSWER: False, Page 10
ANSWER: True, Page 10
ANSWER: False, Page 12
ANSWER: True, Page 15
It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will
replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and
Argentina) as low cost producers of various products and services.
7.
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.
8.
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
transfers.
9.
The U.S. transportation system was deregulated in the 1930s and 1940s in response to
economic conditions and World War 2
10.
Even though there are references to supply chain management in the 1980s, SCM did
not capture the attention of senior-level management until the 1990s.
11.
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 1 Test Bank
ANSWER: False, Page 19
Multiple Choice
13. Most retailers are essentially supply chain companies since
A. they dominate the consumer market.
ANSWER: c, Page 6
14. Which of the below is not one of the external forces driving the rate of
change and shaping our economic and political landscape?
ANSWER: c, Page 7
15. Outsourcing involves
a. moving company facilities away from the home office.
b. hiring foreign nationals to manage parts of the business.
ANSWER: c, Page 9
16. Some individuals describe the current consumer as the “click here”
generation because
ANSWER: b, Page 10
Supply chain managers no longer need to worry about suboptimization in light of
today’s technology.
12.
own their warehouses b. and trucks.
c. they buy products produced by others.
d. engage in off-shore sourcing.
a. Government policy
b. Technology
c. Environmental concerns
d. Globalization
c. obtaining materials, parts, and products from other companies.
d. building a factory in another country.
a. we all have Internet access.
b. we no longer wait for information to be “pushed out” to us.
c. we buy so much merchandise on line.
d. we take little time to make purchasing decisions.
17. The demographics of our society has changed because
a. the “Baby Boom” generation is now turning 60.
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 1 Test Bank
ANSWER: b, Page 12
18. The Supply Chain Concept
ANSWER: d, Page 15
19. Logistics, in its simplest form,
ANSWER: b, Page 16
20. One of the major challenges of supply chain management is
ANSWER: b, Page18
a. information
b. products and services
ANSWER: d, Page 18
of the increase in two-career families and single-b. parent households.
c. of immigration.
d. birth rates have changed.
a. is very new and considered cutting edge technology.
b. is highly dependent of computerization.
c. is not always well understood by senior managers.
d. developed from the previous Physical Distribution concept.
a. is a military term, as it was developed originally to supply the battlefield.
combines inbound logistics with the outbound logistics of physical
distribution.
b.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
a. forward buying.
b. maintaining the visibility of inventory.
c. building safety-stock inventory.
d. Pushing inventory back to vendors.
21. Which of these flows only one way as illustrated in Figure 1-4?
c. financials
d. None of these answers
Traditionally, information has been viewed as flowing in the opposite direction of
products, that is, from the market/customer back to the wholesalers, manufactu rers,
and
vendors.
22.
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 1 Test Bank
ANSWER: d, Page 21
ANSWER: d, page 23
a. complexity
b. inventory deployment
c. inventory carrying costs
d. technology
ANSWER: c, Page 25
25. Which of the following is not part of the Supply Chain network?
ANSWER: b, Page 24
26. Complexity in the supply chain is caused by
ANSWER: d, Page 24
27. Cost/Value refers to
This is still true and a. has not changed.
Computerization has greatly increased the flow of information from the
source.
b.
c. The “Big Box” stores have developed their own sources.
d. None of these answers
One of the four supply chain flows in Figure 1 – 8 that has received increased
attention from supply chain managers due to the growth in technology is:
23.
x. Product flow
y. Information flow
z. Cash flow
aa. Demand flow
The challenge to develop and sustain an efficient and effective supply chain(s) requires
organizations to address a number of issues. Which is not included?
24.
a. plants
b. stores
c. terminals
d. distribution centers
a. the number of SKUs.
b. locations of customers and suppliers.
c. transportation requirements.
d. All of these answers.
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 1 Test Bank
a. getting the best value for the money spent.
ANSWER: c, Page 25
28. Performance measurement is important because
a. it allows firms to rate competitors.
b. without it, managers would not know how the global economy is doing.
ANSWER: d, Page 27
29. A critical outcome of the supply chain is to deliver
ANSWER: b, Page 27
Essay
30. What is the significance of Globalization in Supply Chain Management?
ANSWER: Arguably, globalization is the most frequently cited change factor by business
leaders, and it has replaced the post-World War II Cold War as the dominant driving force in
world economics. The concept of the global marketplace or global economy has taken on
new meaning for all enterprises (profit and nonprofit; small, medium, and large; products or
services) and for individual consumers during the last two decades.
Overall, globalization has led to a more competitively intense economic and geopolitical
environment. This environment manifests itself in opportunities and threats, both economic
and political. Some individuals have implied that there is no “geography” in the current
global environment (figuratively speaking) or, perhaps more aptly, that time and distance
have been compressed. (Pages 7 - 8)
31. What is Vendor Managed Inventory?
ANSWER: Essentially, vendor-managed inventory (VMI) usually means that the [Show Less]