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TEST BANK
CHAPTER 5: THE SUPPLY CHAIN MANAGEMENT CONCEPT
Multiple Choice Questions (correct answers are bolded)
1. An underperforming supply chain is defined as one that exhibits poor service, unproductive
assets, or ___________.
2. The supply chain management concept originated in what discipline?
relationships is managed; Moderate; Application; AACSB Category 3: Analytical thinking]
3. The early to mid-___________ witnessed a growing recognition that there could be value in
coordinating various business functions within and across organizations.
4. What concept can be viewed as a combination of processes, functions, activities, relationships,
and pathways along which products, services, information, and financial transactions move in
and between enterprises from original producer to ultimate end user or consumer?
5. Although nearly any organization can be part of a supply chain, supply chain management
requires (SCM) ___________.
6. The two most prominent SCM process frameworks are the Supply Chain Operations
Reference (SCOR) Model and the ___________.
7. Which organizational function is not a focus of the Supply Chain Operations Reference
(SCOR) Model?
8. Source, plan, make, and enable are processes associated with the ___________.
3
9. Which of the following is not one of the processes in the Supply Chain Operations Reference
(SCOR) Model?
10. The current Global Supply Chain Forum (GSCF) Model identifies ___________ key
processes associated with supply chain management.
11. Customer relationship management, supplier relationship management, order fulfillment, and
returns management are processes associated with the ___________.
12. Contemporary supply chains are increasingly required to be fast and ___________.
13. An organization’s ability to respond to changes in demand with respect to volume and variety
refers to ___________.
14. Which of the following is not a potential outcome from a supply chain’s failure to be fast and
agile?
15. What is a perfect order?
16. ___________ refers to focusing part of one’s supply chain on a timely response to fluctuating
customer orders and/or product variety and another part of the supply chain on leveling out the
planning requirements to smooth production output.
17. What concept refers to the variability in demand orders among supply chain participants?
18. Which of the following is not a way to reduce inventory levels?
19. Which of the following is not an attribute of relational exchanges?
20. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of ___________.
21. Supply chain collaboration can be classified as transactional, strategic, or ___________ in
nature.
6
22. ___________ collaborations offer the best opportunity for improving supply chain
performance.
23. Tailored business relationships between two supply chain members refer to ___________.
24. Which of the following is not an attribute of supply chain partnerships?
25. According to the text, ___________ has been at the center of the changes taking place that
affect the supply chain.
26. Two key factors, ___________ and ___________, have sparked much of the technological
change affecting supply chains.
7
27. The general idea behind ___________ is that one company allows a specialist company to
provide it with one or more logistics functions.
28. Which of the following statements is true?
29. What is a fourth-party logistics provider?
30. Which of the following statements is false?
31. ___________ combines technology with manual employee effort to identify trends, perform
comparisons, and highlight opportunities in supply chain processes, even when large amounts of
data are involved.
32. A recent study of senior executives found that ___________ percent (within 2 percent) had
implemented analytics focused on supply chain activities.
33. In a(n) ___________ approach, all relevant software applications are provided by a single
vendor.
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34. Which of the following is not a barrier to supply chain management?
35. ___________ refers to “how we do things around here” and reflects an organization’s vision,
values, and strategic plans.
36. Which of the following is not a term for a long-term mutually beneficial supply chain
agreement?
37. Which concept refers to the situation in which one organization owns multiple participants in
the supply chain?
38. There are three primary methods that organizations can pursue when attempting to integrate
their supply chains. Which of the following is not one of them?
True-False Questions
1. Research on underperforming supply chains suggests that logistics can be crucial to
[LO: Material at the beginning of the chapter; Easy; Synthesis; AACSB Category 3: Analytical
thinking]
relationships is managed; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
3. Supply chains are a new concept in the sense that they were first identified in the 1970s and
relationships is managed; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 5.1: To explain the concept of supply chains and how the network of interorganizational
relationships is managed; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 5.1: To explain the concept of supply chains and how the network of interorganizational
relationships is managed; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
6. The two prominent supply chain management frameworks are the Supply Chain Operations
[LO 5.2: To summarize supply chain process frameworks; Moderate; Application; AACSB
Category 3: Analytical thinking]
7. The Supply Chain Operations Reference (SCOR) model identifies five key processes
[LO 5.2: To summarize supply chain process frameworks; Easy; Concept; AACSB Category 3:
Analytical thinking]
8. The Global Supply Chain Forum (GSCF) model identifies eight relevant processes associated
[LO 5.2: To summarize supply chain process frameworks; Easy; Concept; AACSB Category 3:
Analytical thinking]
9. Because customer needs and wants change relatively quickly, supply chains should be fast
Moderate; Application; AACSB Category 3: Analytical thinking]
10. With respect to supply chains, relevancy focuses on an organization’s ability to respond to
Moderate; Concept; AACSB Category 3: Analytical thinking]
Concept; AACSB Category 3: Analytical thinking]
Concept; AACSB Category 3: Analytical thinking]
13. The leagility effect refers to variability in demand orders among supply chain members.
Moderate; Concept; AACSB Category 3: Analytical thinking]
14. Supply chain disruptions (e.g., terrorist attacks, natural disasters) have caused some supply
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
15. Relational changes cannot be successful without information sharing among various
12
Moderate; Application; AACSB Category 3: Analytical thinking]
16. Big-box retailers have been at the center of changes taking place that affect the supply chain.
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
17. A primary objective of supply chain management is to optimize the performance of the
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
18. Coopetition refers to cooperative relationships between members of a supply chain to
Moderate; Concept; AACSB Category 3: Analytical thinking]
19. Tactical information sharing offers the best opportunity for improving supply chain
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
20. A willingness to share information and buying decisions based on value rather than cost or
Synthesis; AACSB Category 3: Analytical thinking]
21. The Internet has been referred to as the greatest force of commoditization known to man, for
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
21. Enhanced communications across organizations in a supply chain is only dependent on the
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
13
22. The general idea behind third-party logistics is that one company allows a specialist company
Concept; AACSB Category 3: Analytical thinking]
23. The decision to use third-party logistics companies can be driven by strategic or tactical
Moderate; Application; AACSB Category 3: Analytical thinking]
24. Two causes of failure in third-party logistics arrangements involve unreasonable expectations
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
25. A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000
Moderate; Concept; AACSB Category 3: Analytical thinking]
26. Regulatory considerations represent a bigger obstacle than political considerations to supply
Synthesis; AACSB Category 3: Analytical thinking]
27. The overall global climate for business has shifted toward allowing more cooperation among
Synthesis; AACSB Category 3: Analytical thinking]
Application; AACSB Category 3: Analytical thinking]
29. Actual senior management commitment to supply chain management occurs in one of every
Application; AACSB Category 3: Analytical thinking]
14
30. One cause of the bullwhip effect is asymmetrical information among supply chain
Synthesis; AACSB Category 3: Analytical thinking]
31. Supply chain analytics combines technology with manual employee effort to identify trends,
perform comparisons, and highlight opportunities in supply chain processes, even when large
[LO 5.4: To illustrate potential barriers to supply chain management implementation; Moderate;
Concept; AACSB Category 3: Analytical thinking]
32. A recent survey of 1,000 senior executives indicated that approximately 30 percent of them
[LO 5.4: To illustrate potential barriers to supply chain management implementation; Moderate;
Application; AACSB Category 3: Analytical thinking]
33. Today, computer hardware is a larger barrier than computer software to interorganizational
[LO 5.4: To illustrate potential barriers to supply chain management implementation; Moderate;
Application; AACSB Category 3: Analytical thinking]
34. A best-of-breed approach chooses the best software application for a particular function.
Concept; AACSB Category 3: Analytical thinking]
[LO 5.4: To illustrate potential barriers to supply chain management implementation; Moderate;
Application; AACSB Category 3: Analytical thinking]
36. Supply chain integration tends to be more challenging in global, as opposed to domestic,
[LO 5.4: To illustrate potential barriers to supply chain management implementation; Moderate;
Synthesis; AACSB Category 3: Analytical thinking
AACSB Category 3: Analytical thinking]
15
38. Supply chain agreements should be designed to reward all participants when collaborative
ventures are successful and all participants should share the consequences when these
[LO 5.5: To compare optional approaches for supply chain integration; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
39. Horizontal integration refers to where one organization owns multiple participants in a
[LO 5.5: To compare optional approaches for supply chain integration; Moderate; Concept;
AACSB Category 3: Analytical thinking]
40. Broadly speaking, organizations can pursue three primary methods—vertical integration,
formal contracts, and informal agreements—when attempting to integrate their supply chains.
AACSB Category 3: Analytical thinking]
