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88. Which of the following statements is true of demand-supply integration?
a. It is composed of bundles of interconnected activities that stretch across firms in the supply chain.
b. It is a system of management practices that is consistent with a “systems thinking” approach.
c. It is focused on integrating the supply-management and demand-generating functions of an organization.
d. It is used to align supply and demand throughout the supply chain by anticipating customer requirements.
89. Which statement accurately describes an outcome of acquiring and analyzing big data?
a. It will replace human reasoning with slower but more accurate decision making.
b. It will result in decision making that is based on intuition rather than actual information.
c. It can be used to make decisions about automating supply chain processes, thus replacing human labor.
d. It will accomplish repetitive tasks with significant precision but at a higher cost than human number crunching.
90. 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
91. General Motors recently built a plant in Toluca, Mexico, leading to a 40 percent savings on production costs when
transportation and labor costs were considered together. This is an instance of ______.
a. nearshoring
b. contract logistics
c. supply chain orientation
d. exclusive distribution
92. Which of the following is true of three-dimensional printing?
a. Smaller, localized supply chains will outsource all customization orders.
b. Small manufacturers will profit from making fewer custom products.
c. Small manufacturers will produce products over very short lead times.
d. Small, localized supply chains will face stiff competition from bigger players.
93. Acme Foundation provides information about channel members and consumers by getting answers to key questions
such as, Who are the buyers? Where are they located? Why do they buy? Acme also ensures that channel members have
the money to keep products moving through the channel to the ultimate consumer. The function of Acme described here is
______.
a. logistical
b. transactional
c. facilitating
d. ideation
94. Which of the following statements is true of customer integration for companies oriented toward demand-supply
integration?
a. It is a competency that enables firms to offer value-added offerings to those customers who represent the greatest
value to the firm or supply chain.
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b. It requires firms to link seamlessly to outsiders that provide goods and services to them so that they can provide
high-quality customer experiences.
c. It is a process in which companies will collaborate on projects so that the customer gains the maximum amount of
total value possible from the supply chain.
d. It requires information hardware and software systems that can exchange information when needed between
customers and suppliers.
95. Which statement is true of 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.
96. 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 similar products across different online
stores. This scenario exemplifies:
a. M-commerce.
b. multichannel marketing.
c. dual distribution.
d. a drop and shop program.
97. Which of the following is a disadvantage of supply chain globalization?
a. It restricts companies from availing taxes imposed on imported goods and services.
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 of company technology or knowledge.
98. According to the concepts of specialization and division of labor, breaking down a complex task into smaller ones and
assigning these to specialists creates ______.
a. lower efficiency and higher average production costs
b. lower efficiency but lower average production costs
c. greater efficiency but higher average production costs
d. greater efficiency and lower average production costs
99. _____ 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. A market grouping
b. A common trade alliance
c. Retailer monopoly
d. A marketing channel
100. Sales and operations planning is a procedure
a. companies use to combine production and demand by merging diplomatic and strategic planning methods across
functional areas of the business.
b. That seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each
level and creating demand-related plans of action prior to actual customer purchasing behavior.
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c. That presents a multi-company, unified response system to the customer whenever complaints, concerns,
questions, or comments are voiced.
d. None of these.
101. Which of the following is true of retailers?
a. They provide contact efficiency for consumers.
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.
102. Which of the following statements is true of supply chain management 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.
103. Which of the following entails the logistical function of intermediaries in marketing channels?
a. Sorting, accumulation, consolidation, and/or allocation of assets to conform to customer requirements
b. Researching data on channel members and consumers
c. Explaining a product’s features, advantages, and benefits
d. Contacting prospective buyers to make them aware of existing products
104. Entity A supplies planed timber, paint, varnish, springs, upholstery, and cushioning to Entity B, which produces a
ready to use furniture. Entity C is the marketing department of Entity B. In this context, ______.
a. A is an upstream supply chain member, while C is the downstream chain member
b. C is an upstream supply chain member, while A is the downstream chain member
c. B is an upstream supply chain member, while A is the downstream chain member
d. C is an upstream supply chain member, while B is the downstream chain member
105. Which of the following is true when choosing a marketing channel?
a. The more standardized a product is, the longer its distribution channel can be, although the greater number of
intermediaries that can be involved will drive up costs.
b. The less standardized a product is, the longer its distribution channel can be, although the greater number of
intermediaries that can be involved will drive up costs.
c. The less standardized a product is, the longer its distribution channel can be and the greater the number of
intermediaries that can be involved without driving up costs.
d. The more standardized a product is, the longer its distribution channel can be and the greater the number of
intermediaries that can be involved without driving up costs.
106. The best order fulfillment processes reduce order cycle time as much as possible. The shorter lead times are
beneficial in that they allow firms to carry ______.
a. reduced inventory levels and minimize investment in newer, untested projects
b. reduced inventory levels and free up cash that can be used on other projects
c. increased inventory levels and borrow cash for newer, more promising projects
d. increased inventory levels and generate greater profits by meeting sudden demands
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107. Which of the following represents programs that use convenience to get consumers to recycle products like batteries
or cell phones during a regular trip to the store?
a. Strategic channel alliance
b. Drop and shop
c. Reverse channel
d. Gray marketing
108. Which of the following is a major 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.
109. Magnira Inc., an equipment manufacturing company, designs precision cutting tools that can be used for various
applications. A recent project required Magnira to work closely with a surgical tools manufacturing company to produce a
medical stapler that helps reduce traumatic procedures and promotes 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.
110. 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
_____ functions of Mezzah Bros.
a. transactional
b. research
c. logistical
d. financing
111. When you purchase a loaf of bread, which of the following is creating exchange utility?
a. The transport company
b. The government
c. The supermarket
d. The bread factory
112. Grand Trunk Inc., a furniture manufacturing company, does not manufacture any pieces 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 _____
management.
a. supply chain
b. customer relationship
c. returns
d. asset lifecycle
113. Which of the following is true of nontraditional channels?
a. They increase a brand’s coverage in the market.
b. They are used to sell stolen or counterfeit products..
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c. They lead to competition between distribution channels through cannibalization.
d. They may help differentiate a firm’s product from the competition.
114. Which statement is true of agents and brokers?
a. They take title to the goods and services they market.
b. They represent manufacturers’ products to potential customers.
c. They often determine the terms of the sale.
d. They get the same fee, regardless of sales volume.
115. Among the types of external integration that companies want to achieve to be able to provide top-level service to
their customers, measurement integration reflects the idea that performance assessments should ______.
a. assess the performance of individual parts of the supply chain separately, not the whole chain
b. be transparent and measurable across the borders of different firms and units
c. hold the entire chain accountable for meeting the goals of each entity in the chain
d. recommend the inclusion of more business units to expand the supply chain
116. What are the disadvantages of globalizing a company’s supply chain?
117. Explain the manufacturing flow management process and the relationship among manufacturers’ production
capabilities and costs, suppliers, shippers, and demand for goods. Briefly define and explain the differences between lean
and agile supply chain strategies.
118. Explain the product factors that affect which distribution channel is the best choice for a company.
119. Briefly explain the emerging distribution channel structures and include examples of each.
120. How does the supply chain management of the mass production era differ from the supply chain management
practiced today?
121. What is a supply chain orientation? Describe the five characteristics of supply chain–oriented firms.
122. What are the advantages of M-commerce? Why is it important?
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Answer Key
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