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Indicate whether the statement is true or false.
1. Supply chain management gives assembly line employees total visibility and control of the materials, processes,
money, and finished products both inside and outside the company they work for.
a. True
b. False
2. Sustainable supply chain management primarily involves integrating and balancing environmental, social, and
economic thinking into all phases of the supply chain management process.
a. True
b. False
3. Measurement integration is a competency that enables firms to offer long-lasting, distinctive, value-added offerings to
those customers who represent the greatest value to the firm or supply chain.
a. True
b. False
4. Drop and shop programs use convenience to get consumers to recycle products, like batteries or cell phones, during a
regular trip to the store.
a. True
b. False
5. Agents and brokers are wholesaling intermediaries who take title to goods and services they market.
a. True
b. False
6. A similarity between the customer relationship management process and the supplier relationship management process
is that both provide structural support for developing and maintaining relationships with their respective supply chain
partners.
a. True
b. False
7. A company’s supply chain includes all of the companies involved in the upstream and downstream flow of products,
services, finances, and information, extending from initial suppliers to the ultimate customer.
a. True
b. False
8. A strategic channel alliance is a cooperative agreement between business firms to use the other’s already established
distribution channel.
a. True
b. False
9. The best order fulfillment processes increase order cycle time.
a. True
b. False
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10. Third-party logistics companies sell logistics solutions and physical products.
a. True
b. False
11. Retailers simplify distribution by reducing the number of transactions required by consumers, and by making an
assortment of goods available in one location.
a. True
b. False
12. The marketing channel is the upstream portion of the supply chain that is charged with moving component parts or
raw materials to the producer.
a. True
b. False
13. Intensive distribution is a form of distribution that establishes one or a few dealers within a given area.
a. True
b. False
14. Nearshoring leads to high costs and increases supply chain risk.
a. True
b. False
15. Third-party logistics companies or logistics integrators are consulting-based organizations that assess another’s entire
logistical service needs and provides integrated solutions, often drawing on multiple fourth-party logistics companies for
actual service.
a. True
b. False
16. DutiLog Inc. is a company that specializes in providing warehouse space and transportation solutions to a diverse
group of firms. Given this information, DutiLog Inc. is an example of a third-party logistics company.
a. True
b. False
17. Warehouse space is an example of a third-party logistics company product.
a. True
b. False
18. Offshoring reduces transportation costs of a company.
a. True
b. False
19. In a multichannel marketing system, each channel does not hold its own inventory.
a. True
b. False
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Indicate the answer choice that best completes the statement or answers the question.
20. The best order fulfillment processes:
a. manage volumes of returned product efficiently.
b. increase inventory levels of the firm.
c. reduce the time between order and customer receipt.
d. reduce coordination between multiple companies.
21. Outsourcing enables companies to:
a. locate stocks at fewer plants and distribution centers.
b. focus investment on their logistical functions rather than on core business.
c. lengthen the order-to-cash cycle.
d. eliminate the need of using a third-party logistics company.
22. Clifford Woods, a furniture e-commerce site, has its headquarters in Deletonth, the capital city of Ijinia. The company
has its manufacturing facility in Sentopan, which is a tax haven with cheap labor. In this scenario, Clifford Woods uses
the business trend of _____.
a. backsourcing
b. offshoring
c. insourcing
d. nearshoring
23. Grand Trunk Inc., a furniture manufacturing company, does not manufacture furniture until an order is received. It
coordinates and integrates the activities of its suppliers, designers and carpenters to ensure an efficient production cycle.
This enables Grand Trunk Inc. to deliver the products to customers within five working days. This is an example of
_____.
a. supply chain management
b. yield management
c. returns management
d. asset lifecycle management
24. Which of the following statements is true of multichannel marketing?
a. Customers are offered information, goods, services, and/or support through one or more synchronized channels.
b. It becomes difficult to find the channel responsible for discrepancies in the inventory.
c. It unifies transportation and distribution systems of different channels.
d. It creates a main channel which acts as the sale and profit center.
25. Nessca Solutions Inc. has recently created a hardware and software system for transmitting data among different
departments within Nessca Solutions Inc. The system provides an easy and quick way of exchanging information. This
has increased the firm’s efficiency while reducing costs. This is an example of _____.
a. measurement and feedback integration
b. material and service supplier integration
c. customer integration
d. technology and planning integration
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26. Which of the following statements is true of supply chain oriented firms?
a. They lack the support of top managers.
b. They are willing to accept short-term risks on behalf of others.
c. They work against their partners when seeking to achieve goals.
d. They are not better off financially in the long run.
27. Phoenix Farm, a firm that sells farm products, gathers all fresh food ingredients at one place for its customers. The
customers can buy eggs, milk, meat, vegetables, and so on without spending a great amount of time and energy. Phoenix
Farm is a _____.
a. merchant wholesaler
b. retailer
c. agent
d. broker
28. Laelle Inc. is a company that sells apparel for women. It recently shut down its physical store and is operating as a
completely app-based store now. The app allows users to access the store’s products anytime and anywhere using their cell
phones, and it also has features that allow users to compare the prices of products across different online stores. This
scenario exemplifies:
a. M-commerce.
b. multichannel marketing.
c. dual distribution.
d. a drop and shop program.
29. Leah works for the call center back office of Centimo Cabs, an online transportation network company. She gets a call
from a customer complaining that his cab booking got cancelled multiple times. Leah immediately verified the
cancellation history on the customer’s account and helped him book another cab. In the context of critical business
processes, this scenario indicates that Centimo Cabs focuses on _____.
a. customer relationship management
b. customer service management
c. order fulfillment
d. product commercialization
30. _____ refers to the elements of the composition and appearance of a product that make it desirable.
a. Form utility
b. Time utility
c. Exchange utility
d. Place utility
31. Candicett Corp., a big-box hardware store, sources its products in large quantities directly from hardware
manufacturing companies across the world. Which of the following distribution channels does Candicett Corp. use?
a. A retailer channel
b. A wholesaler channel
c. An agent channel
d. A direct channel
32. Which of the following is a disadvantage of supply chain globalization?
a. It restricts companies from availing trade tariff.
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b. It increases labor costs and materials costs for companies.
c. It exposes companies to risks associated with geopolitical conflict.
d. It leads to stagnation in the company’s technology or knowledge.
33. _____ is a form of distribution aimed at maximum market coverage.
a. Narrow distribution
b. Intensive distribution
c. Selective distribution
d. Exclusive distribution
34. Which of the following statements is true of companies that focus on supply chain management?
a. They report reduced logistical flexibility.
b. They report lower warehousing costs.
c. They have limited interactions with their suppliers.
d. They incur large incremental expenditure on company assets.
35. Which of the following statements is true of channel members?
a. They provide contact efficiency.
b. Agents and brokers take ownership of goods in the marketing channel.
c. They provide generalization of labor.
d. Merchant wholesalers create form utility.
36. IndigBlue Inc., a distributor of audio equipment, component parts, and supplies, takes title to all its products. It
operates a few warehouses where it stores the finished goods and reships them to its clients, resellers, and other vendors.
According to this scenario, IndigBlue Inc. is an example of a ____.
a. sales agent
b. merchant wholesaler
c. retailer
d. broker
37. Identify a true statement about agile companies.
a. They increase the complexity of the supply chain.
b. They use a “pull” strategy instead of a “push” strategy to market their products.
c. They spend less time than their competitors on activities that create direct customer benefits.
d. They partner closely with suppliers and service providers to reduce customer wait times for products.
38. A _____ is a business structure of interdependent organizations that reaches from the point of production to the
consumer and facilitates the downstream physical movement of goods through the supply chain.
a. market grouping
b. common trade alliance
c. retailer monopoly
d. marketing channel
39. Jodilm Corp., a machinery manufacturing company, wanted to develop a new pneumatic filling machine. The
production manager sought the help of the company’s supplier of pneumatic hardware with respect to certain
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technicalities. Subsequently, the filling machine was successfully developed and launched using the expertise of both the
firms. In the context of business processes, the collaboration between Jodilm Corp. and its supplier illustrates the _____.
a. product development and commercialization process
b. supplier relationship management process
c. customer service management process
d. order fulfillment process
40. Which of the following statements is true of the supplier relationship management process?
a. It enables firms to act as leaders in protecting the natural environment.
b. It introduces features and cost-cutting measures into final products.
c. It enables suppliers and business units to operate with limited or no interaction.
d. It provides structural support for developing and maintaining relationships with suppliers.
41. Lindsey Inc., a popular bag retailing chain in the country Harrienda, purchases its travel bags from Sherrint Inc., one
of the largest bag manufacturers in the country of Casabomia. With an aim to venture into Casabomian markets, Lindsey
enters into a joint venture with Sherrint to set up the first Lindsey outlet in Casabomia. In the context of critical business
processes, the partnership between Lindsey Inc. and Sherrint Inc. illustrates _____.
a. customer service management
b. supplier relationship management
c. demand management
d. manufacturing flow management
42. Which of the following statements is true of three-dimensional printing (3DP)?
a. It is expected to have a negative impact on businesses’ carbon footprints and the environment at large.
b. It cannot be used in industries such as auto parts, biomedical, and fast food.
c. It will lead to mass production of standardized goods than custom products.
d. It will eliminate the need for transportation of finished goods to distribution centers and retailers.
43. Mezzah Bros., a video store that sells DVDs and entertainment publications, stores its products in separate
warehouses. Moreover, it uses different modes of transportation to deliver them to customers. This scenario illustrates the
_____ of Mezzah Bros.
a. transactional functions
b. research functions
c. logistical functions
d. financing functions
44. In the context of supply chain integration, relationship integration:
a. makes performance assessments transparent and measurable across the borders of different firms.
b. is a type of internal integration sought by firms interested in providing top-level service to customers.
c. enables companies to act as multiple individual units.
d. includes ways in which companies collaborate on activities or projects.
45. Bullors Inc., an apparel manufacturer, prices its products low by selling them only through factory outlets. Therefore,
Bullors apparels can neither be bought online nor from any superstores. Which of the following channels is Bullors Inc.
using for the distribution of its products?
a. A retailer channel
b. A wholesaler channel
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c. A direct channel
d. A broker channel
46. Identify a true statement about supply chain management.
a. It reflects a completely employee-driven management philosophy.
b. It enables supply chain managers to focus on pushing products down the marketing channels to consumers.
c. It enables supply chain managers to respond quickly to sudden changes in supply or demand.
d. It gives assembly line employees total control of materials, processes, money, and finished products.
47. The logistical function of intermediaries in marketing channels involves:
a. sorting, accumulation, and consolidation of products.
b. researching about channel members and consumers
c. explaining a product’s features, advantages, and benefits.
d. contacting prospective buyers to make them aware of existing products.
48. Unlike in the mass production era, in today’s marketplace:
a. supply chain management reflects a completely employee-driven management philosophy.
b. standardized products are “pushed” down through marketing channels to consumers.
c. businesses focus on partnering with members of the supply chain to enhance customer value.
d. companies that focus on supply chain management commonly report high inventory costs.
49. Magnira Inc., an equipment manufacturing company, designs precision cutting blades that can be used for various
applications. A recent project required Magnira Inc. to work closely with a surgical tools manufacturing company to
manufacture a stapler that staples closely, which would help ensure less traumatic procedures and quicker patient
recoveries. This is an example of the:
a. product development and commercialization process.
b. supplier relationship management process.
c. customer service management process.
d. order fulfillment process.
50. Which of the following statements is true of a retailer channel?
a. It is most common when the retailer is large and can buy in large quantities directly from the manufacturer.
b. It uses agents and brokers to procure products from manufacturers.
c. It is commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines.
d. It involves passing ownership directly from the producer to the ultimate consumer.
51. Which of the following statements is true of public-private partnerships?
a. They increase the negative impacts of potentially hazardous supply chain situations.
b. They are critical to the satisfaction of both company and societal interests.
c. They are formed when the magnitude of a supply chain dilemma is of little importance to a company.
d. They lack power to solve future national and global supply chain problems.
52. Companies that work closely with their suppliers:
a. are free from problems such as corporate culture.
b. encounter problems such as information hoarding and trust issues.
c. do not share responsibility with the suppliers for satisfying customer requirements.
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d. only follow an internal supply chain integration.
53. Krista went to RedthreeD, a seller of customized household accessories, to get U-hooks made for various utilities in
her new house. The company used three-dimensional printing to manufacture the U-hooks as per Krista’s specifications.
In this scenario, which of the following technologies did RedthreeD use?
a. Tampography
b. Lenticular printing
c. Additive manufacturing
d. Molding
54. Dulighten Inc. is a company that manufactures and furnishes lighting solutions for commercial establishments. It does
not manufacture products until a customer confirms the construction plan of a commercial building. Besides that, it
coordinates and integrates the activities of its suppliers, designers, and electricians to ensure an efficient production cycle.
This enables Dulighten to deliver the products to customers within five working days. In this scenario, Dulighten Inc. is
practicing _____.
a. supply chain management
b. yield management
c. returns management
d. asset lifecycle management
55. Pamarle Bank has a hardware and software system that connects the deposits department, loans department, and
insurance department of each of its branches. This system also connects each branch to the various other departments in
the bank’s headquarters, thereby enabling branches to redirect customer details and queries to the concerned department so
that customers are offered a pool of services from various departments. This process has increased the bank’s efficiency
while reducing costs. In this scenario, which type of external integration does Pamarle Bank have?
a. Measurement and feedback integration
b. Measurement and feedback integration
c. Customer integration
d. Technology and planning integration
56. Alfest Bank has a database of the registered mobile numbers of its higher-value customers. When these customers
make calls to the bank’s customer care unit, the calls are received on priority and are never redirected to a voice response
unit. In the context of critical business processes, in this scenario, Alfest Bank focuses on _____.
a. customer relationship management
b. product development and commercialization
c. customer service management
d. demand management
57. Which of the following best defines the order-to-cash cycle?
a. It is the time gap between purchase of raw materials and manufacturing of the final product.
b. It is the amount of time between order placement and receipt of the customer’s payment following order shipment.
c. It is the time delay between the packaging of an order and the consumption of the product.
d. It is the amount of time between the cancellation of an order by a customer and the approval of cancellation.
58. A _____ enables consumers to return products to the retailer or manufacturer in the event of a product defect, or at the
end of the product’s useful life to the consumer.
a. gray marketing channel
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b. reverse channel
c. nontraditional channel
d. digital channel
59. Under the _____ philosophy, functional areas in a company such as marketing, sales, or research/development
communicate frequently and are synchronized with purchasing, manufacturing, and logistics.
a. demand chain orientation
b. supply chain agility
c. demand-supply integration
d. supply chain analytics
60. Which of the following is a similarity between merchant wholesalers and retailers?
a. Both provide form utility.
b. Both take title to products in the marketing channel.
c. Both have little input into the terms of sale of a product.
d. Both get a fee or commission based on sales volume.
61. Which of the following is an advantage of offshoring?
a. It reduces supply chain risks for a company.
b. It decreases labor costs incurred by a company.
c. It enables a company to relocate outsourced operations closer to home.
d. It reduces the fuel costs spent on transporting goods.
62. Marketing channels attain economies of scale:
a. through specialization and division of labor.
b. by aiding downstream producers in marketing to consumers.
c. by providing form utility to producers.
d. through minimum interaction with suppliers.
63. Which of the following statements is true of nontraditional channels?
a. They increase a brand’s coverage in the market.
b. They aid upstream producers in marketing to consumers.
c. They lead to competition between distribution channels through cannibalization.
d. They help differentiate a firm’s product from the competition.
64. Kate is a customer care executive at a telecommunications services company. She receives a complaint from Mike, a
customer, about an unnecessary deduction of $10 from his phone credit. If the company follows customer service
management, Kate is most likely to:
a. forecast whether such problems will arise in the future.
b. integrate the company’s internal capabilities with customer’s needs.
c. provide a quick response to the customer using customer care software.
d. resolve the complaint only if the customer is highly valuable to the company.
65. Unlike multichannel marketing, omnichannel marketing:
a. requires each channel to have its own inventory, processes, and performance metrics.
b. creates redundancy and complexity in a firm’s distribution system.
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c. creates greater customer control over the shopping experience.
d. requires the construction of multiple and individual supply chains.
66. Which of the following individuals or companies uses an emerging distribution channel structure?
a. A retail store that sells counterfeit backpacks of famous brands
b. An online apparel store that offers subscription services for high-end fashion clothing
c. An electronics retailer who sells products directly to customers through its shop-at-home television channel
d. A department store that sells apparel, electronics, grocery, and home furnishing products of various manufacturers
in one location
67. Castle Brew Inc., a leading multinational beverage manufacturing company, coordinates with Waste Yard Inc., a
waste management company, to devise a strategy that would help in recycling and reusing beverage bottles. Castle Brew
Inc. plans to install hundreds of machines that would recycle empty bottles in many locations and provide rewards to
those consumers who participate in the initiative as it believes that this initiative would help protect the environment. In
this scenario, Castle Brew Inc. is practicing _____.
a. sustainable supply chain management
b. outsourcing
c. mass customization
d. demand-supply integration
68. Constap Pharma is a large pharmaceutical manufacturing company that has hundreds of employees working in various
divisions of the production department such as sterile medicines, nonsterile medicines, and capsules. When a customer
requests a huge quantity of nonsterile medicines in a relatively short time for export, the company ensures that different
departments coordinate well to sort, pack, and dispatch the product. Which process in supply chain management does this
scenario illustrate?
a. The order fulfillment process
b. The demand management process
c. The returns management process
d. The commercialization process
69. Lina orders a spare part for her custom-built bike from Lumberne Technologies Inc. The company makes use of three-
dimensional printing to produce the spare part at its branch that is closest to Lina’s home. In this case, which of the
following technologies is used to produce the spare part?
a. Tampography
b. Lenticular printing
c. Additive manufacturing
d. Molding
70. _____ is defined as a system of management practices that are consistent with a systems thinking approach.
a. Supply chain integration
b. Supply chain analytics
c. A supply chain orientation
d. A supply chain paradigm
71. Which of the following is an advantage of supply chain globalization?
a. It helps in delivering products that have highly consistent quality standards.
b. It provides consistency in transportation service.
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c. It lowers labor rates and material costs.
d. It reduces competition from domestic suppliers.
72. Companies are globalizing their supply chains because:
a. of increasing demand for imported products worldwide.
b. it helps reduce transportation and warehousing costs.
c. of a decrease in the length and risk of supply chains globally.
d. it helps standardize the quality of the products produced.
73. The most prominent difference separating intermediaries is whether they:
a. use a “push” strategy.
b. lower average production costs.
c. raise profit margins for independent middlemen.
d. take title to the products they sell.
74. Latoya Tours, a company that runs city bus tours, also sells souvenirs to attract tourists. Tickets can be bought online,
on the company Web site, or at the booking office. When booking tickets online, customers can check the real-time
availability of the souvenirs that they can buy after the tour ends. Which type of marketing channel is Latoya Tours using?
a. M-commerce
b. Omnichannel marketing
c. Multichannel marketing
d. A drop and shop program
75. Bookhint.com, an e-commerce site, rents out expensive books for a week or for a month to its readers. Voracious
readers who cannot afford these books are their main customers. In this scenario, Bookhint’s distribution channel is an
example of _____.
a. intensive distribution
b. selective distribution
c. an emerging distribution structure
d. a wholesaler channel
76. Identify a true statement about the demand management process.
a. It increases costs as it involves serving multiple types of customers who have variable wants and needs.
b. It eases the pressure on the production process of a company.
c. It focuses on providing quick positive response to negative customer feedback.
d. It creates customer-focused plans of action prior to actual purchases being made.
77. Darrell House, a basketball club, started selling all its match tickets on its Web site. All customers, including its fan
club members, now have to buy their tickets online. Which business trend does this scenario illustrate?
a. Electronic distribution
b. Wholesale distribution
c. Personal distribution
d. Mail order distribution
78. Which of the following statements is true of retailers?
a. They provide contact efficiency for consumers.
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b. They provide time and place utility to agents and brokers.
c. They facilitate exchanges of ownership between buyers and sellers.
d. They facilitate the movement of products from the manufacturer to producers and resellers.
79. _____ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and
seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.
a. Intermediaries
b. Laggards
c. Early adopters
d. Innovators
80. Kristinne Land, an island resort, runs on solar and wind power. Besides that, it primarily recruits war widows who
need jobs on its staff. In the context of business processes, these practices of Kristinne Land illustrate _____.
a. sustainable supply chain management
b. the customer service management process
c. mass customization
d. the demand management process
81. What are the disadvantages of globalizing a company’s supply chain?
82. Explain the product factors that affect the selection of a distribution channel.
83. What is supply chain orientation? Describe the five characteristics of supply chain oriented firms.
84. How does the supply chain management of the mass production era differ from the supply chain management
practiced today?
85. What are the advantages of M-commerce? Why is it important?
86. What is the manufacturing flow management process? Briefly explain the differences between lean and agile supply
chain strategies.
87. Briefly explain the emerging distribution channel structures with examples.
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Answer Key
1. False
2. True
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