234) What is the first step in choosing the right supply chain?
A) Understand the supply chain.
B) Develop a list of qualified channel members.
C) Enumerate logistics specifications.
D) Compare multiple-channel alternatives.
E) Understand the customer.
235) IBM used its artificial intelligence supercomputer Watson to improve its own
A) logistical flow.
B) demand chain.
C) supplier-customer alliance.
D) supply chain.
E) supplier pipeline.
236) IBM has adopted a(n) ________ supply chain strategy to better serve its customers.
A) efficient
B) responsive
C) harmonized
D) integrated
E) fully controlled
237) IBM built a single ________ that would handle raw material procurement, manufacturing,
logistics, customer support, order entry, and customer fulfillment across all of IBM—something
that had never been done before.
A) integrated supply chain
B) extranet computer system
C) customer service department
D) intranet supply network system
E) global procurement network
238) Often companies must choose between a responsive supply chain and an efficient supply
chain. This decision is based on
A) the specific needs of customer segments.
B) monetary considerations.
C) supplier alternatives.
D) the business mission.
E) a lack of an appropriate channel captain.
239) The goals to be achieved by a firm’s marketing strategy determine whether its supply chain
needs to be more ________ in meeting customer requirements.
A) cost effective
B) broadly expanded
C) responsive or efficient
D) centrally located
E) geographically distributed
240) Dell has adopted a(n) ________ supply chain strategy to better serve its customers.
A) responsive
B) reactionary
C) efficient
D) proficient
E) economical
241) Because its customers desire rapid delivery and a wide variety of customizable products,
Dell made a conscious decision to use a(n) ________ supply chain to meet these requirements.
A) integrated
B) efficient
C) harmonized
D) responsive
E) multitiered
242) Which statement regarding responsive supply chains is most accurate?
A) Responsive supply chains use slower modes of transportation but faster order processing.
B) Responsive supply chains always use the least expensive mode of transportation possible.
C) Responsive supply chains rely on large inventory warehouses.
D) Responsive supply chains achieve economies of scale by having all inventory stored and
sorted at a central location.
E) Responsive supply chains rely heavily on information technology.
243) Which statement regarding responsive supply chains is most accurate?
A) Responsive supply chains use slower modes of transportation but faster order processing.
B) Responsive supply chains often rely on more expensive express transportation.
C) Responsive supply chains always use the least expensive type of packaging possible.
D) Responsive supply chains rely on large inventory warehouses.
E) Responsive supply chains achieve economies of scale by having all inventory stored and
sorted at a central location.
244) Walmart made a conscious decision to use a(n) ________ supply chain in order to best meet
the needs of its consumers.
A) integrated
B) responsive
C) harmonized
D) efficient
E) multitiered
245) Walmart’s marketing strategy is to be a reliable, lower-price retailer for a wide variety of
mass consumption consumer goods. This strategy favors a(n) ________ designed to deliver
products to consumers at the lowest possible cost.
A) integrated supply chain
B) global supply chain
C) efficient supply chain
D) responsive supply chain
E) customer service supply chain
246) Which statement regarding efficient supply chains is most accurate?
A) Efficient supply chains often operate with relatively low inventory levels.
B) Efficient supply chains use common platforms and common components across several
products.
C) Efficient supply chains rely on maintaining large geographically dispersed inventory
warehouses.
D) Efficient supply chains traditionally use expensive, but faster, modes of transportation.
E) Efficient supply chains emphasize economies of scale by increasing the variety of system
configurations offered.
247) Which statement regarding efficient supply chains is most accurate?
A) Efficient supply chains use common platforms and common components across several
products.
B) Efficient supply chains rely on large geographically dispersed inventory warehouses.
C) Efficient supply chains traditionally use expensive, but faster, modes of transportation.
D) Efficient supply chains may utilize cross-docking.
E) Efficient supply chains emphasize economies of scale by increasing the variety of system
configurations offered.
248) The practice that involves unloading products from suppliers, sorting products for
individual stores, and quickly reloading products on trucks that will deliver the products to
specific stores is referred to as
A) just-in-time (JIT) delivery.
B) intermodal distribution.
C) immediate response system (ERS).
D) piggy-backing.
E) cross-docking.
249) Cross-docking refers to
A) the practice of organizing the cost-effective flow of raw materials, in-process inventory,
finished goods, and related information from point of origin to point of consumption to satisfy
customer requirements.
B) the practice of storing finished goods in the same trucks from which they will be dispensed
and sold to consumers.
C) using large cargo containers that will be loaded onto trucks and then barges or ships that sail
from port to port and then unloaded back onto trucks for final transport and delivery.
D) a practice that involves unloading products from suppliers, sorting products for individual
stores, and quickly reloading products onto trucks for a particular store.
E) the practice of transporting retail goods from a centralized warehouse to the loading docks of
regionally located satellite warehouses.
250) Cross-docking is most closely related to
A) efficient supply chains.
B) intermodal transportation.
C) responsive supply chains.
D) reverse logistics.
E) exclusive distribution.
251) Which of the following statements regarding supply chains is most accurate?
A) The most common form of supply chain is the collaborative-response efficiency strategy.
B) In order for a supply chain to work effectively, key decisions should be made by a third-party
logistics provider.
C) There is no one best supply chain for every company.
D) The longer the supply chain, the greater the economies of scale and the better the profit
margins.
E) Supply chains should consider the needs of suppliers, provided those needs are consistent
with marketing strategies.
252) Which of the following statements regarding supply chains is most accurate?
A) The best supply chain is the one that is consistent with the needs of the customer segment
being served and complements a company’s marketing strategy.
B) The most common form of supply chain is the collaborative-response efficiency strategy.
C) In order for a supply chain to work effectively, key decisions should be made by a third-party
logistics provider.
D) The longer the supply chain, the greater the economies of scale and the better the profit
margin.
E) Supply chains should consider the needs of suppliers, provided those needs are consistent
with marketing strategies.
253) Which of the following statements regarding supply chains is most accurate?
A) The most common form of supply chain is the collaborative-response efficiency strategy.
B) In order for a supply chain to work effectively, key decisions should be made by a third-party
logistics provider.
C) The longer the supply chain, the greater the economies of scale and the better the profit
margin.
D) Supply chains should consider the needs of suppliers, provided those needs are consistent
with marketing strategies.
E) Supply chain managers often need to make trade-offs between efficiency and responsiveness.
254) The objective of information and logistics management in a customer-driven supply chain
is to minimize logistics costs while
A) satisfying suppliers.
B) maximizing profits.
C) maximizing supply chain membership.
D) delivering the appropriate level of customer service.
E) maximizing supply chain inefficiency.
255) Expenses associated with transportation, materials handling and warehousing, inventory,
stockouts (being out of inventory), order processing, and return products handling are referred to
as
A) supplier service cost.
B) manufacturing cost.
C) total logistics cost.
D) social responsibility cost.
E) total supply chain cost.
256) Total logistics cost refers to
A) the design, installation, and maintenance of in-store displays, cabinets, and freestanding
promotional materials for retail outlets.
B) expenses associated with activities performed by brokers and agents to bring buyers and
sellers together.
C) expenditures associated with the clerical or bookkeeping side of the procurement process,
which include purchase, design, and maintenance of the EDI system.
D) expenses associated with product adaptations that are made by the manufacturer in response
to the needs of a channel member closest to the consumer.
E) expenses associated with transportation, materials handling and warehousing, inventory,
stockouts, order processing, and return products handling.
257) Figure 15-10 above indicates that supply chain managers must balance total logistics cost
factors against customer service factors. The six total logistics cost factors (A, B, C, D, E, and F)
include all of the following except which?
A) order processing
B) materials handling and warehousing
C) time
D) inventory
E) transportation
258) Figure 15-10 above indicates that supply chain managers must balance total logistics cost
factors against customer service factors. The four customer service factors (W, X, Y, and Z)
include all of the following except which?
A) communication
B) dependability
C) convenience
D) warehousing
E) time
259) Which of the following is an element of total logistics cost?
A) new-product development
B) inventory
C) advertising
D) personal selling
E) market research
260) Which of the following best describes the goal for a firm’s inventory and transportation
costs?
A) Focus more on minimizing required inventory costs.
B) Focus more on minimizing required transportation costs.
C) Minimize the sum of inventory and transportation costs.
D) Maximize the difference between required inventory and transportation costs.
E) Set a level of transportation costs and minimize the required inventory costs.
261) For logistics, the customer service concept suggests that firms should
A) automate customer service.
B) maximize customer service levels.
C) minimize customer service levels.
D) minimize total logistics costs and let customer service be handled by the retailer.
E) satisfy users in terms of time, dependability, communication, and convenience.
262) In the context of a supply chain, customer service refers to
A) adhering to the belief that the customer is always right.
B) satisfying the customers’ needs no matter what the price.
C) accepting full liability if a product fails to meet a customer’s expectations.
D) the ability of logistics management to satisfy users in terms of time, dependability,
communication, and convenience.
E) the ability of retailers to satisfy users in terms of product, price, promotion, and place.
263) Within the context of a supply chain, ________ is the ability of a logistics system to satisfy
users in terms of time, dependability, communication, and convenience.
A) quick response
B) customer service
C) distribution management
D) efficient consumer response
E) lead time
264) Time, dependability, communication, and convenience are all important concepts of
________, within the context of the supply chain.
A) customer service
B) supplier service
C) wholesaler service
D) retailer service
E) stakeholder service
265) Supply chain managers balance total logistics cost factors against customer service factors.
Customer service factors include
A) reliability, flexibility, consistency, and dependability.
B) time, dependability, communication, and convenience.
C) consistency, responsiveness, durability, and communication.
D) time, assurance, responsiveness, and dependability.
E) convenience, flexibility, time, and value.
266) The output of a supply chain is the
A) units of products delivered.
B) total generated revenue.
C) service delivered to customers.
D) total number of customers served.
E) total profits realized.
267) Which of the following statements regarding supply chain customer service is most
accurate?
A) The output of a supply chain is measured in total units sold.
B) Customer service must be balanced against total logistics cost factors.
C) The output of a supply chain is measured either in total units sold or total number of
customers served.
D) A firm’s goal should be to provide superior customer service regardless of costs.
E) Customer service is the responsibility of marketing channel members and not the supplier
network.
268) The lag from ordering an item until it is received and ready for use or sale is referred to as
A) order cycle time.
B) order handling time.
C) order-to-ship duration.
D) purchase cycle.
E) logistics cycle.
269) Order cycle time refers to
A) the time between when an order is placed and when payment is received.
B) the time between the sale of the first production batch to the sale of the next production batch.
C) the cycle between one full warehouse shipment to the next full warehouse shipment.
D) the time between the ordering of an item and when it is received and ready for use or sale.
E) the average time between reorders by a given wholesaler or retailer in the marketing channel.