Sample Questions Chapter 1
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which sequence of stages is typical for product flow in a supply chain?
A) Supplier → Manufacturer → Distributor
B) Supplier → Customer → Retailer
C) Manufacturer → Retailer → Distributor
D) Retailer → Distributor → Customer
1) _______
2) For any supply chain, the source of revenue is generated by
A) efficient operations.
B) the customer.
C) information flows.
D) product flows.
2) _______
3) The objective of every supply chain is to
A) minimize the cost to the manufacturer.
C) maximize the profit of the manufacturer.
3) _______
B) minimize the overall cost generated.
D) maximize the overall value generated.
4) For any supply chain,
A) management rests solely in the hands of the manufacturer.
B) there is only one source of revenue, the customer.
C) if each member focuses on profitability, the overall supply chain profit will be maximized.
D) management rests solely in the hands of the distributor.
4) _______
5) A company would decide whether to outsource or perform a supply chain function in-house
during the
A) operation phase.
B) planning phase.
C) tactical phase.
D) design phase.
5) _______
6) The profitability of a supply chain is impacted primarily by the
A) operation category of decisions.
B) design, planning and operation categories of decisions.
C) design and planning categories of decisions.
D) planning and operation categories of decisions.
6) _______
7) The cycle view of a supply chain holds that
A) all processes in a supply chain are performed in anticipation of customer orders.
B) the processes in a supply chain are divided into a series of activities performed at the
interface between successive stages.
C) all processes in a supply chain are initiated in response to a customer order.
D) the processes in a supply chain are divided into 2 categories.
7) _______
8) The customer order cycle occurs at the
A) distributor/manufacturer interface.
C) customer/retailer interface.
8) _______
9) The replenishment cycle occurs at the
A) customer/retailer interface.
C) manufacturer/supplier interface.
10) The manufacturing cycle occurs at the
A) distributor/manufacturer interface.
C) retailer/distributor interface.
B) manufacturer/supplier interface.
D) retailer/distributor interface.
9) _______
B) retailer/distributor interface.
D) distributor/manufacturer interface.
10) ______
B) manufacturer/supplier interface.
D) customer/retailer interface.
11) The procurement cycle occurs at the
A) manufacturer/supplier interface.
C) customer/retailer interface.
11) ______
B) retailer/distributor interface.
D) distributor/manufacturer interface.
12) The cycle view of the supply chain is useful when considering operational decisions, because
A) it categorizes processes based on whether they are initiated in response to or in anticipation
of customer orders.
B) it specifies the roles and responsibilities of each member of the supply chain.
C) it focuses on processes that are external to the firm.
D) processes are identified as either reactive or speculative.
12) ______
13) Which of the following statements about pull processes is accurate?
A) They may also be referred to as reactive processes.
B) They may also be referred to as speculative processes.
C) Execution is initiated in anticipation of customer orders.
D) At the time of execution, demand must be forecast.
13) ______
14) Supply chain macro processes include which of the following?
A) Supply Chain Relationship Management (SCRM)
B) Internal Relationship Management (IRM)
C) Customer Relationship Management (CRM)
D) External Relationship Management (ERM)
14) ______
15) Activities involved in the Customer Relationship Management (CRM) macro process include
A) supply planning.
B) marketing.
C) planning of internal production and storage.
D) order fulfillment.
15) ______
16) Activities involved in the Supplier Relationship Management (SRM) macro process include
A) supplier evaluation and selection.
B) order management.
C) order fulfillment.
D) planning of internal production and storage.
16) ______