Business Driven Technology 7th Edition Baltzan Test Bank Download

Business Driven Technology 7th Edition
by Baltzan ISBN 125956732X

9781259567322
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Chapter 10
Extending the Organization — Supply Chain Management
True / False Questions
1. The customer's customer is upstream in the supply chain.
True False
10-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2. Plan, source, make, deliver, and return are the five basic supply chain management
components.
True False
3. Plan, source, give, get, and return are the five basic supply chain management components.
True False
4. In the basic supply chain, source refers to building relationships with suppliers to procure raw
materials.
True False
5. In the basic supply chain, source refers to planning for transportation of goods to customers.
True False
6. In the basic supply chain, return refers to supporting customers and product returns.
True False
7. In the basic supply chain, make refers to manufacturing products and create production
schedules.
True False
8. In the basic supply chain, return refers to prepare to manage all resources required to meet
demands.
True False
9. In the basic supply chain, plan refers to preparing to manage all resources required to meet
demand.
True False
10-2
10. In the basic supply chain, deliver refers to planning for transportation of goods to customers.
True False
11. Materials are transformed into semi finished and finished products—the organization's own
production processes.
True False
12. Products are distributed to customers and their downstream customers at all levels.
True False
13. A back order is an unfilled customer order for a product that is out of stock.
True False
14. Inventory cycle time is the time it takes to manufacture a product and deliver it to the
retailer.
True False
15. Customer order cycle time is the agreed upon time between the purchase of a product and
the delivery of the product.
True False
16. Inventory turnover is the frequency of inventory replacement.
True False
17. Inventory turnover is an unfilled customer order for a product that is out of stock.
True False
10-3
18. Customer order cycle time is the time it takes to manufacture a product and deliver it to the
retailer.
True False
19. Inventory cycle time is the agreed upon time between the purchase of a product and the
delivery of the product.
True False
20. Inventory cycle time is the frequency of inventory replacement.
True False
21. Information technology's primary role in supply chain management is creating the
integrations or tight process and information linkages between functions within a firm—such
as marketing, sales, finance, manufacturing, and distribution—and between firms.
True False
22. Effective and efficient supply chain management systems can enable an organization to
decrease the power of its buyers.
True False
23. Supply chain visibility is the ability to view all areas up and down the supply chain.
True False
24. Supply chain execution systems ensure supply chain cohesion by automating the different
activities of the supply chain.
True False
25. Supply chain execution system is the ability to view all areas up and down the supply chain.
True False
10-4
26. Supply chain visibility ensures supply chain cohesion by automating the different activities of
the supply chain.
True False
27. Electronic data interchange (EDI), a standard format for the electronic exchange of
information between supply chain participants.
True False
28. The bullwhip effect occurs when distorted product-demand information ripples from one
partner to the next throughout the supply chain.
True False
29. The bullwhip effect is a standard format for the electronic exchange of information between
supply chain participants.
True False
30. Electronic data interchange occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain.
True False
31. A supply chain execution system might electronically route orders from a manufacturer to a
supplier using electronic data interchange (EDI), a standard format for the electronic
exchange of information between supply chain participants.
True False
32. Supply chain event management (SCEM) enables an organization to react more quickly to
resolve supply chain issues.
True False
10-5
33. Selling chain management applies technology to the activities in the order life cycle from
inquiry to sale.
True False
34. Collaborative engineering allows an organization to reduce the cost and time required during
the design process of a product.
True False
35. Collaborative demand planning helps organizations reduce their investment in inventory while
improving customer satisfaction through product availability.
True False
36. Selling chain management enables an organization to react more quickly to resolve supply
chain issues.
True False
37. Supply chain event management applies technology to the activities in the order life cycle
from inquiry to sale.
True False
38. Collaborative demand planning allows an organization to reduce the cost and time required
during the design process of a product.
True False
39. Collaborative engineering helps organizations reduce their investment in inventory while
True False
40. Procurement is the purchasing of goods and services to meet the needs of the supply chain.
True False
10-6
41. Procurement can help a company answer the following question: What quantity of raw
materials should we purchase to minimize spoilage?
True False
42. Logistics includes the processes that control the distribution, maintenance, and replacement
of materials and personnel to support the supply chain.
True False
43. Inbound logistics acquires raw materials and resources and distributes them to
manufacturing as required.
True False
44. Outbound logistics distributes goods and services to customers.
True False
45. Logistics controls processes inside a company (warehouse logistics) and outside a company
(transport logistics) and focuses on the physical execution part of the supply chain.
True False
46. Materials management is the purchasing of goods and services to meet the needs of the
supply chain.
True False
47. Logistics can help a company answer the following question: What quantity of raw materials
should we purchase to minimize spoilage?
True False
48. Procurement includes the processes that control the distribution, maintenance, and
replacement of materials and personnel to support the supply chain.
True False
10-7
49. Outbound logistics acquires raw materials and resources and distributes them to
True False
50. Inbound logistics distributes goods and services to customers.
True False
51. Logistics includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave. Cradle to grave provides logistics
support.
True False
52. Cradle-to-grave provides logistics support throughout the entire system or life of the
product.
True False
53. Materials management includes activities that govern the flow of tangible, physical materials
through the supply chain such as shipping, transport, distribution, and warehousing.
True False
54. Logistics includes activities that govern the flow of tangible, physical materials through the
supply chain such as shipping, transport, distribution, and warehousing.
True False
55. The process of 3D printing (additive manufacturing) builds—layer by layer in an additive

process—a three-dimensional solid object from a digital model.
True False
10-8
56. 3D printing is a process that builds—layer by layer in an additive process—a three-
dimensional solid object from a digital model.
True False
57. Drones include a process that builds—layer by layer in an additive process—a three-
True False
58. 3D printing supports procurement.
True False
59. 3D printing supports materials management.
True False
60. RFID uses electronic tags and labels to identify objects wirelessly over short distances.
True False
61. RFID supports logistics.
True False
62. RFID supports procurement.
True False
63. Drones are unmanned aircraft that can fly autonomously, or without a human.
True False
64. 3D printing is unmanned aircraft that can fly autonomously, or without a human.
True False
10-9
65. Drones support logistics.
True False
66. Drones support materials management.
True False
67. Robotics focus on creating artificial intelligence devices that can move and react to sensory
input.
True False
68. Robotics supports materials management.
True False
69. Robotics supports procurement.
True False
70. Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are used to

create the digital designs and then manufacture the products.
True False
71. RFID systems are used to create the digital designs and then manufacture the products.
True False
72. The maker movement is a cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things.
True False
10-10
73. The robotics movement is a cultural trend that places value on an individual's ability to be a
True False
74. Makerspaces is a community center that provides technology, manufacturing equipment, and
educational opportunities to the public that would otherwise be inaccessible or unaffordable.
True False
75. Cradle to grave is a community center that provides technology, manufacturing equipment,
and educational opportunities to the public that would otherwise be inaccessible or
unaffordable.
True False
76. Radio-frequency identification (RFID) uses electronic tags and labels to identify objects
wirelessly over short distances.
True False
77. RFID's Electronic Product Code (RFID EPC) promotes serialization, or the ability to track
individual items by using the unique serial number associated with each RFID tag.
True False
78. A drone is an unmanned aircraft that can fly autonomously, or without a human. Amazon.com
is piloting drone aircraft for package deliveries.
True False
79. Robotics focuses on creating artificial intelligence devices that can move and react to
sensory input.
True False
10-11
Multiple Choice Questions
80. In which of the five basic supply chain activities do you prepare to manage all resources
required to meet demand?
A. Plan
B. Source
C. Deliver
D. Return
81. In which of the five basic supply chain activities do you build relationships with suppliers to
procure raw materials?
A. Plan
B. Source
C. Deliver
D. Return
82. In which of the five basic supply chain activities do you manufacture products and create
production schedules?
A. Plan
B. Source
C. Deliver
D. Make
10-12
83. In which of the five basic supply chain activities do you plan for the transportation of goods to
customers?
A. Plan
B. Source
C. Deliver
D. Return
84. In which of the five basic supply chain activities do you support customers and product
returns?
A. Plan
B. Source
C. Deliver
D. Return
85. Where would you find the customers' customer in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
D. Not on the supply chain
86. Where would you find the suppliers' supplier in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
10-13
87. Where would you find the manufacturer and distributor in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
88. Walmart and Procter & Gamble (P&G) implemented a tremendously successful SCM system.
The system linked Walmart's _____________ centers directly to P&G's _____________ centers.
A. Manufacturing, distribution
B. Distribution, manufacturing
C. Stores, distribution
D. Distribution, stores
89. What can effective and efficient supply chain management systems enable an organization to
accomplish?
A. Increase the power of its buyers

B. Increase its supplier power
C. Increase switching costs to increase the threat of substitute products or services
D. All of these
90. Which of the following is not one of the five basic components of supply chain management?
A. Plan
B. Source
C. Cost
D. Deliver
10-14
A. Plan
B. Source
C. Analyze
D. Deliver
A. Plan
B. Source
C. Sale
D. Deliver
93. What is it called when distorted product-demand information ripples from one partner to the
next throughout the supply chain?
A. Bullwhip effect
B. Demand planning systems
C. Supply chain planning systems
D. Supply chain execution systems
94. Which of the following represents the bullwhip effect?
A. Organizations know about employee events triggered downstream in the supply chain
B. Customers receive distorted product demand information regarding sales information
C. Distorted product-demand information ripples from one partner to the next throughout the
supply chain
D. The ability to view all areas up and down the supply chain
10-15
95. What is the ability to view all areas up and down the supply chain in real time?
A. Bullwhip effect
B. Demand planning software
C. Supply chain visibility
D. Supply chain execution software
96. Which of the following metrics represents an unfilled customer order for a product that is out
of stock?
A. Back order
B. Inventory cycle time
C. Customer order cycle time
D. Inventory turnover
97. Which of the following metrics represents the time it takes to manufacture a product and
deliver it to the retailer?
A. Back order
98. Which of the below metrics represents the agreed upon time between the purchase of a
product and the delivery of the product?
A. Back order
10-16
99. Which of the following metrics represents the frequency of inventory replacement?
A. Back order
100.What is a back order?
A. An unfilled customer order for a product that is out of stock.

B. The time it takes to manufacture a product and deliver it to the retailer.
C. The agreed upon time between the purchase of a product and the delivery of the product.
D. The frequency of inventory replacement.
101.What is inventory cycle time?

102.What is customer order cycle time?

10-17
103.What is inventory turnover?

104.What is supply chain visibility?
A. Enables viewing of all areas up and down the supply chain in real time.
B. Uses advanced mathematical algorithms to improve the flow and efficiency of the supply
chain while reducing inventory.
C. Ensures supply chain cohesion by automating the different activities of the supply chain.
D. Occurs when distorted product-demand information ripples from one partner to the next
throughout the supply chain.
105.What is a supply chain planning system?
A. Views all areas up and down the supply chain in real time.
10-18
106.What is a supply chain execution system?
107.What is the bullwhip effect?
108.Which of the following is one of the business areas of supply chain management?
A. Logistics
B. Procurement
C. Materials management
D. All of these
109.What is the purchasing of goods and services to meet the needs of the supply chain?
A. Procurement
B. Logistics
D. Bullwhip effect
10-19
110.What includes the processes that control the distribution, maintenance, and replacement of
materials and personnel to support the supply chain?
A. Procurement
B. Logistics
D. Bullwhip effect
111.What includes activities that govern the flow of tangible, physical materials through the
supply chain such as shipping, transport, distribution, and warehousing?
A. Procurement
B. Logistics
D. Bullwhip effect
112.What is procurement?
A. The purchasing of goods and services to meet the needs of the supply chain.
B. Includes the processes that control the distribution, maintenance, and replacement of
materials and personnel to support the supply chain.
C. Includes activities that govern the flow of tangible, physical materials through the supply
chain such as shipping, transport, distribution, and warehousing.
10-20
113.What is logistics?
114.What is materials management?
115.What acquires raw materials and resources and distributes them to manufacturing as
required?
A. Inbound logistics
B. Outbound logistics
C. Logistics
D. Cradle to grave
10-21
116.What distributes goods and services to customers?
C. Logistics
D. Cradle to grave
117.What includes the increasingly complex management of processes, information, and

communication to take a product from cradle to grave?
C. Logistics
D. Cradle to grave
118.Which of the following questions can procurement help a company answer?
A. What quantity of raw materials should we purchase to minimize spoilage?

B. How can we guarantee that our raw materials meet production needs?
C. At what price can we purchase materials to guarantee profitability?
D. All of these.
119.Which of the following questions can logistics help a company answer?
A. What is the quickest way to deliver products to our customers?

B. What is the optimal way to place items in the warehouse for picking and packing?
C. What is the optimal path to an item in the warehouse?
D. All of these.
10-22
120.Which of the following questions can procurement help a company answer?

D. How can we guarantee that our raw materials meet production needs?
121.Which of the following questions can logistics help a company answer?

D. What path should the vehicles follow when delivering the goods?
122.Which of the following questions can materials management help a company answer?
A. What are our current inventory levels?

B. What items are running low in the warehouse?
C. What items are at risk of spoiling in the warehouse?
D. All of these.
123.Which of the following questions can materials management help a company answer?
A. How do we dispose of spoiled items?

B. What laws need to be followed for storing hazardous materials?
C. Which items must be refrigerated when being stored and transported?
D. All of these.
10-23
124.What is 3D Printing?
A. A process that builds—layer by layer in an additive process—a three-dimensional solid

object from a digital model.
B. Uses electronic tags and labels to identify objects wirelessly over short distances.
C. Unmanned aircraft that can fly autonomously, or without a human.
D. Focus on creating artificial intelligence devices that can move and react to sensory input.
125.What is RFID?

126.What are drones?

127.What are robotics?

D. Artificial intelligence devices that can move and react to sensory input.
10-24
128.What is a process that builds—layer by layer in an additive process—a three-dimensional
solid object from a digital model?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
129.What focuses on creating artificial intelligence devices that can move and react to sensory
input?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
130.What are unmanned aircraft that can fly autonomously, or without a human?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
131.What uses electronic tags and labels to identify objects wirelessly over short distances?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
10-25
132.What is computer-aided design/computer-aided manufacturing (CAD/CAM)?
A. Systems are used to create the digital designs and then manufacture the products.
B. A cultural trend that places value on an individual's ability to be a creator of things as well
as a consumer of things.
C. A community center that provides technology, manufacturing equipment, and educational
opportunities to the public that would otherwise be inaccessible or unaffordable.
D. Promotes serialization or the ability to track individual items by using the unique serial
number associated with each RFID tag.
133.What is the maker movement?
A. Systems used to create the digital designs and then manufacture the products.
D. Serialization of or the ability to track individual items by using the unique serial number
associated with each RFID tag.
134.What is a makerspace?
10-26
135.What is an RFID's electronic product code?
A. System used to create the digital designs and then manufacture the products.
D. Promotion of serialization or the ability to track individual items by using the unique serial
136.What are systems are used to create the digital designs and then manufacture the products?
A. Computer-aided design/computer-aided manufacturing

B. Maker movement
C. Makerspace
D. RFID electronic product code
137.What is a cultural trend that places value on an individual's ability to be a creator of things as
well as a consumer of things?

B. Maker movement
C. Makerspace
10-27
138.What is a community center that provides technology, manufacturing equipment, and
educational opportunities to the public that would otherwise be inaccessible or
unaffordable?

B. Maker movement
C. Makerspace
139.What promotes serialization or the ability to track individual items by using the unique serial
number associated with each RFID tag?

B. Maker movement
C. Makerspace
140.What is supply chain event management (SCEM)?
A. Enables an organization to react more quickly to resolve supply chain issues.

B. Applies technology to the activities in the order life cycle from inquiry to sale.
C. Allows an organization to reduce the cost and time required during the design process of a
product.
D. Helps organizations reduce their investment in inventory while improving customer
satisfaction through product availability.
10-28
141.What is selling chain management?

product.
142.What is collaborative engineering?

product.
143.What is collaborative demand planning?

product.
10-29
144.What enables an organization to react more quickly to resolve supply chain issues?
A. Supply chain event management

B. Selling chain management
C. Collaborative engineering
D. Collaborative demand planning
145.What applies technology to the activities in the order life cycle from inquiry to sale?

146.What allows an organization to reduce the cost and time required during the design process
of a product?

147.What helps organizations reduce their investment in inventory while improving customer
satisfaction through product availability?

10-30
Essay Questions
148.Define the relationship between supply chain management and decision making.
149.Describe the fastest growing components of SCM systems.
10-31
Chapter 10 Extending the Organization — Supply Chain Management
Answer Key
True / False Questions
1. The customer's customer is upstream in the supply chain.
FALSE
The customer's customer is downstream in the supply chain.
Accessibility: Keyboard Navigation

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 10-01 Describe supply chain management along with its impact on business.
Topic: Supply Chain Management
2. Plan, source, make, deliver, and return are the five basic supply chain management
components.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-32
3. Plan, source, give, get, and return are the five basic supply chain management
components.
FALSE
Plan, source, make, deliver, and return are the five basic supply chain management
components.

Blooms: Remember
Difficulty: 1 Easy
4. In the basic supply chain, source refers to building relationships with suppliers to procure
raw materials.
TRUE

Blooms: Remember
Difficulty: 1 Easy
5. In the basic supply chain, source refers to planning for transportation of goods to
customers.
FALSE
In the basic supply chain, deliver refers to planning for transportation of goods to
customers.

Blooms: Remember
Difficulty: 1 Easy
10-33
6. In the basic supply chain, return refers to supporting customers and product returns.
TRUE

Blooms: Remember
Difficulty: 1 Easy
7. In the basic supply chain, make refers to manufacturing products and create production
schedules.
TRUE

Blooms: Remember
Difficulty: 1 Easy
8. In the basic supply chain, return refers to prepare to manage all resources required to
meet demands.
FALSE
In the basic supply chain, plan refers to prepare to manage all resources required to meet
demands.

Blooms: Remember
Difficulty: 1 Easy
10-34
9. In the basic supply chain, plan refers to preparing to manage all resources required to
meet demand.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10. In the basic supply chain, deliver refers to planning for transportation of goods to
customers.
TRUE

Blooms: Remember
Difficulty: 1 Easy
11. Materials are transformed into semi finished and finished products—the organization's
own production processes.
TRUE

Blooms: Remember
Difficulty: 1 Easy
12. Products are distributed to customers and their downstream customers at all levels.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-35
13. A back order is an unfilled customer order for a product that is out of stock.
TRUE

Blooms: Remember
Difficulty: 1 Easy
14. Inventory cycle time is the time it takes to manufacture a product and deliver it to the
retailer.
TRUE

Blooms: Remember
Difficulty: 1 Easy
15. Customer order cycle time is the agreed upon time between the purchase of a product and
TRUE

Blooms: Remember
Difficulty: 1 Easy
16. Inventory turnover is the frequency of inventory replacement.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-36
17. Inventory turnover is an unfilled customer order for a product that is out of stock.
FALSE
A back order is an unfilled customer order for a product that is out of stock.

Blooms: Remember
Difficulty: 1 Easy
18. Customer order cycle time is the time it takes to manufacture a product and deliver it to
the retailer.
FALSE
Inventory cycle time is the time it takes to manufacture a product and deliver it to the
retailer.

Blooms: Remember
Difficulty: 1 Easy
19. Inventory cycle time is the agreed upon time between the purchase of a product and the
delivery of the product.
FALSE
Customer order cycle time is the agreed upon time between the purchase of a product and

Blooms: Remember
Difficulty: 1 Easy
10-37
20. Inventory cycle time is the frequency of inventory replacement.
FALSE
Inventory turnover is the frequency of inventory replacement.

Blooms: Remember
Difficulty: 1 Easy
21. Information technology's primary role in supply chain management is creating the
integrations or tight process and information linkages between functions within a firm—
such as marketing, sales, finance, manufacturing, and distribution—and between firms.
TRUE

Blooms: Remember
Difficulty: 1 Easy
22. Effective and efficient supply chain management systems can enable an organization to
decrease the power of its buyers.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-38
23. Supply chain visibility is the ability to view all areas up and down the supply chain.
TRUE

Blooms: Remember
Difficulty: 1 Easy
24. Supply chain execution systems ensure supply chain cohesion by automating the different
TRUE

Blooms: Remember
Difficulty: 1 Easy
25. Supply chain execution system is the ability to view all areas up and down the supply
chain.
FALSE
This is the definition of supply chain visibility.

Blooms: Remember
Difficulty: 1 Easy
10-39
26. Supply chain visibility ensures supply chain cohesion by automating the different activities
of the supply chain.
FALSE
This is the definition of supply chain execution systems.

Blooms: Remember
Difficulty: 1 Easy
27. Electronic data interchange (EDI), a standard format for the electronic exchange of
information between supply chain participants.
TRUE

Blooms: Remember
Difficulty: 1 Easy
28. The bullwhip effect occurs when distorted product-demand information ripples from one
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-40
29. The bullwhip effect is a standard format for the electronic exchange of information
between supply chain participants.
FALSE
This is the definition of electronic data interchange (EDI).

Blooms: Remember
Difficulty: 1 Easy
30. Electronic data interchange occurs when distorted product-demand information ripples
from one partner to the next throughout the supply chain.
FALSE
This is the definition of the bullwhip effect.

Blooms: Remember
Difficulty: 1 Easy
31. A supply chain execution system might electronically route orders from a manufacturer to
a supplier using electronic data interchange (EDI), a standard format for the electronic
exchange of information between supply chain participants.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-41
32. Supply chain event management (SCEM) enables an organization to react more quickly to
TRUE

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 10-02 Identify the three components of supply chain management along with the technologies
reinventing the supply chain.
Topic: Technology Reinventing SCM
33. Selling chain management applies technology to the activities in the order life cycle from
inquiry to sale.
TRUE

Blooms: Remember
Difficulty: 1 Easy
34. Collaborative engineering allows an organization to reduce the cost and time required
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-42
35. Collaborative demand planning helps organizations reduce their investment in inventory
while improving customer satisfaction through product availability.
TRUE

Blooms: Remember
Difficulty: 1 Easy
36. Selling chain management enables an organization to react more quickly to resolve supply
chain issues.
FALSE
Supply chain event management (SCEM) enables an organization to react more quickly to

Blooms: Remember
Difficulty: 1 Easy
37. Supply chain event management applies technology to the activities in the order life cycle
from inquiry to sale.
FALSE
Selling chain management applies technology to the activities in the order life cycle from
inquiry to sale.

Blooms: Remember
Difficulty: 1 Easy
10-43
38. Collaborative demand planning allows an organization to reduce the cost and time
required during the design process of a product.
FALSE
Collaborative engineering allows an organization to reduce the cost and time required

Blooms: Remember
Difficulty: 1 Easy
39. Collaborative engineering helps organizations reduce their investment in inventory while
FALSE
Collaborative demand planning helps organizations reduce their investment in inventory

Blooms: Remember
Difficulty: 1 Easy
40. Procurement is the purchasing of goods and services to meet the needs of the supply
chain.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-44
41. Procurement can help a company answer the following question: What quantity of raw
TRUE

Blooms: Remember
Difficulty: 1 Easy
42. Logistics includes the processes that control the distribution, maintenance, and
TRUE

Blooms: Remember
Difficulty: 1 Easy
43. Inbound logistics acquires raw materials and resources and distributes them to
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-45
44. Outbound logistics distributes goods and services to customers.
TRUE

Blooms: Remember
Difficulty: 1 Easy
45. Logistics controls processes inside a company (warehouse logistics) and outside a
company (transport logistics) and focuses on the physical execution part of the supply
chain.
TRUE

Blooms: Remember
Difficulty: 1 Easy
46. Materials management is the purchasing of goods and services to meet the needs of the
supply chain.
FALSE
Procurement is the purchasing of goods and services to meet the needs of the supply
chain.

Blooms: Remember
Difficulty: 1 Easy
10-46
47. Logistics can help a company answer the following question: What quantity of raw
FALSE
Procurement can help a company answer the following question: What quantity of raw

Blooms: Remember
Difficulty: 1 Easy
48. Procurement includes the processes that control the distribution, maintenance, and
FALSE
Logistics includes the processes that control the distribution, maintenance, and

Blooms: Remember
Difficulty: 1 Easy
10-47
49. Outbound logistics acquires raw materials and resources and distributes them to
FALSE
Inbound logistics acquires raw materials and resources and distributes them to

Blooms: Remember
Difficulty: 1 Easy
50. Inbound logistics distributes goods and services to customers.
FALSE
Outbound logistics distributes goods and services to customers.

Blooms: Remember
Difficulty: 1 Easy
51. Logistics includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave. Cradle to grave provides logistics
support.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-48
52. Cradle-to-grave provides logistics support throughout the entire system or life of the
product.
TRUE

Blooms: Remember
Difficulty: 1 Easy
53. Materials management includes activities that govern the flow of tangible, physical
materials through the supply chain such as shipping, transport, distribution, and
warehousing.
TRUE

Blooms: Remember
Difficulty: 1 Easy
54. Logistics includes activities that govern the flow of tangible, physical materials through the
FALSE
Materials management includes activities that govern the flow of tangible, physical
warehousing.

Blooms: Remember
Difficulty: 1 Easy
10-49
55. The process of 3D printing (additive manufacturing) builds—layer by layer in an additive
process—a three-dimensional solid object from a digital model.
TRUE

Blooms: Remember
Difficulty: 1 Easy
56. 3D printing is a process that builds—layer by layer in an additive process—a three-

TRUE

Blooms: Remember
Difficulty: 1 Easy
57. Drones include a process that builds—layer by layer in an additive process—a three-
FALSE
3D printing is a process that builds—layer by layer in an additive process—a three-

Blooms: Remember
Difficulty: 1 Easy
10-50
58. 3D printing supports procurement.
TRUE

Blooms: Remember
Difficulty: 1 Easy
59. 3D printing supports materials management.
FALSE
3D printing supports procurement.

Blooms: Remember
Difficulty: 1 Easy
60. RFID uses electronic tags and labels to identify objects wirelessly over short distances.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-51
61. RFID supports logistics.
TRUE

Blooms: Remember
Difficulty: 1 Easy
62. RFID supports procurement.
FALSE
RFID supports logistics.

Blooms: Remember
Difficulty: 1 Easy
63. Drones are unmanned aircraft that can fly autonomously, or without a human.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-52
64. 3D printing is unmanned aircraft that can fly autonomously, or without a human.
FALSE
Drones are unmanned aircraft that can fly autonomously, or without a human.

Blooms: Remember
Difficulty: 1 Easy
65. Drones support logistics.
TRUE

Blooms: Remember
Difficulty: 1 Easy
66. Drones support materials management.
FALSE
Drones support logistics.

Blooms: Remember
Difficulty: 1 Easy
10-53
67. Robotics focus on creating artificial intelligence devices that can move and react to
sensory input.
TRUE

Blooms: Remember
Difficulty: 1 Easy
68. Robotics supports materials management.
TRUE

Blooms: Remember
Difficulty: 1 Easy
69. Robotics supports procurement.
FALSE
Robotics supports materials management.

Blooms: Remember
Difficulty: 1 Easy
10-54
70. Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are used to
TRUE

Blooms: Remember
Difficulty: 1 Easy
71. RFID systems are used to create the digital designs and then manufacture the products.
FALSE
Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are used to

Blooms: Remember
Difficulty: 1 Easy
72. The maker movement is a cultural trend that places value on an individual's ability to be a
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-55
73. The robotics movement is a cultural trend that places value on an individual's ability to be
a creator of things as well as a consumer of things.
FALSE
The maker movement is a cultural trend that places value on an individual's ability to be a

Blooms: Remember
Difficulty: 1 Easy
74. Makerspaces is a community center that provides technology, manufacturing equipment,

unaffordable.
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-56
75. Cradle to grave is a community center that provides technology, manufacturing equipment,
unaffordable.
FALSE
Makerspaces is a community center that provides technology, manufacturing equipment,
unaffordable.

Blooms: Remember
Difficulty: 1 Easy
76. Radio-frequency identification (RFID) uses electronic tags and labels to identify objects
wirelessly over short distances.
TRUE

Blooms: Remember
Difficulty: 1 Easy
77. RFID's Electronic Product Code (RFID EPC) promotes serialization, or the ability to track
TRUE

Blooms: Remember
Difficulty: 1 Easy
10-57
78. A drone is an unmanned aircraft that can fly autonomously, or without a human.
Amazon.com is piloting drone aircraft for package deliveries.
TRUE

Blooms: Remember
Difficulty: 1 Easy
79. Robotics focuses on creating artificial intelligence devices that can move and react to
sensory input.
TRUE

Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions
10-58
80. In which of the five basic supply chain activities do you prepare to manage all resources
required to meet demand?
A. Plan
B. Source
C. Deliver
D. Return
In the plan activity you prepare to manage all resources required to meet demand.

Blooms: Remember
Difficulty: 1 Easy
81. In which of the five basic supply chain activities do you build relationships with suppliers
to procure raw materials?
A. Plan
B. Source
C. Deliver
D. Return
In the source activity you build relationships with suppliers to procure raw materials.

Blooms: Remember
Difficulty: 1 Easy
10-59
82. In which of the five basic supply chain activities do you manufacture products and create
production schedules?
A. Plan
B. Source
C. Deliver
D. Make
In the make activity you manufacture products and create production schedules.

Blooms: Remember
Difficulty: 1 Easy
83. In which of the five basic supply chain activities do you plan for the transportation of
goods to customers?
A. Plan
B. Source
C. Deliver
D. Return
During the deliver activity you plan for the transportation of goods to customers.

Blooms: Remember
Difficulty: 1 Easy
10-60
84. In which of the five basic supply chain activities do you support customers and product
returns?
A. Plan
B. Source
C. Deliver
D. Return
In return, you support customers and product returns.

Blooms: Remember
Difficulty: 1 Easy
85. Where would you find the customers' customer in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
Customers' customer is downstream in a typical supply chain.

Blooms: Understand
10-61
86. Where would you find the suppliers' supplier in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
Suppliers' supplier is upstream in a typical supply chain.

Blooms: Understand
87. Where would you find the manufacturer and distributor in a typical supply chain?
A. Upstream
B. Downstream
C. In the middle
The manufacturer and distributor are in the middle of a typical supply chain.

Blooms: Understand
10-62
88. Walmart and Procter & Gamble (P&G) implemented a tremendously successful SCM
system. The system linked Walmart's _____________ centers directly to P&G's
_____________ centers.
A. Manufacturing, distribution
B. Distribution, manufacturing
C. Stores, distribution
D. Distribution, stores
Walmart's distribution centers are linked directly to P&G's manufacturing centers.

Blooms: Understand
89. What can effective and efficient supply chain management systems enable an
organization to accomplish?
A. Increase the power of its buyers

B. Increase its supplier power
C. Increase switching costs to increase the threat of substitute products or services
D. All of these
Answer A should state "decrease" the power of its buyers, and answer C should state
"reduce" the threat of substitute products or services.

Blooms: Analyze
Difficulty: 3 Hard
10-63
90. Which of the following is not one of the five basic components of supply chain
management?
A. Plan
B. Source
C. Cost
D. Deliver
Plan, source, make, deliver, and return are the five components of SCM.

Blooms: Remember
Difficulty: 1 Easy
management?
A. Plan
B. Source
C. Analyze
D. Deliver

Blooms: Remember
Difficulty: 1 Easy
10-64
management?
A. Plan
B. Source
C. Sale
D. Deliver

Blooms: Remember
Difficulty: 1 Easy
93. What is it called when distorted product-demand information ripples from one partner to
the next throughout the supply chain?
A. Bullwhip effect
B. Demand planning systems
C. Supply chain planning systems
D. Supply chain execution systems
This is the definition of the bullwhip effect.

Blooms: Remember
Difficulty: 1 Easy
10-65
94. Which of the following represents the bullwhip effect?
A. Organizations know about employee events triggered downstream in the supply chain
B. Customers receive distorted product demand information regarding sales information
C. Distorted product-demand information ripples from one partner to the next throughout
the supply chain
D. The ability to view all areas up and down the supply chain
Distorted product-demand information ripples from one partner to the next throughout the
supply chain represents the bullwhip effect.

Blooms: Remember
Difficulty: 1 Easy
95. What is the ability to view all areas up and down the supply chain in real time?
A. Bullwhip effect
B. Demand planning software
C. Supply chain visibility
D. Supply chain execution software
This is the definition of supply chain visibility.

Blooms: Remember
Difficulty: 1 Easy
10-66
96. Which of the following metrics represents an unfilled customer order for a product that is
out of stock?
A. Back order
This is the definition of back order.

Blooms: Remember
Difficulty: 1 Easy
97. Which of the following metrics represents the time it takes to manufacture a product and
deliver it to the retailer?
A. Back order
This is the definition of inventory cycle time.

Blooms: Remember
Difficulty: 1 Easy
10-67
98. Which of the below metrics represents the agreed upon time between the purchase of a
product and the delivery of the product?
A. Back order
This is the definition of customer order cycle time.

Blooms: Remember
Difficulty: 1 Easy
99. Which of the following metrics represents the frequency of inventory replacement?
A. Back order
This is the definition of inventory turnover.

Blooms: Remember
Difficulty: 1 Easy
10-68
100. What is a back order?

C. The agreed upon time between the purchase of a product and the delivery of the
product.
Back order: An unfilled customer order for a product that is out of stock.

Blooms: Remember
Difficulty: 1 Easy
101. What is inventory cycle time?

product.
Inventory cycle time: The time it takes to manufacture a product and deliver it to the
retailer.

Blooms: Remember
Difficulty: 1 Easy
10-69
102. What is customer order cycle time?

product.
Customer order cycle time: The agreed upon time between the purchase of a product and

Blooms: Remember
Difficulty: 1 Easy
103. What is inventory turnover?

product.
Inventory turnover: The frequency of inventory replacement.

Blooms: Remember
Difficulty: 1 Easy
10-70
104. What is supply chain visibility?
A. Enables viewing of all areas up and down the supply chain in real time.
B. Uses advanced mathematical algorithms to improve the flow and efficiency of the
supply chain while reducing inventory.
C. Ensures supply chain cohesion by automating the different activities of the supply
chain.
D. Occurs when distorted product-demand information ripples from one partner to the
next throughout the supply chain.
Supply chain visibility is the ability to view all areas up and down the supply chain in real
time.

Blooms: Remember
Difficulty: 1 Easy
105. What is a supply chain planning system?
chain.
Supply chain planning systems use advanced mathematical algorithms to improve the flow
and efficiency of the supply chain while reducing inventory.

Blooms: Remember
Difficulty: 1 Easy
10-71
106. What is a supply chain execution system?
chain.
Supply chain execution systems ensure supply chain cohesion by automating the different

Blooms: Remember
Difficulty: 1 Easy
107. What is the bullwhip effect?
chain.
The bullwhip effect occurs when distorted product-demand information ripples from one

Blooms: Remember
Difficulty: 1 Easy
10-72
108. Which of the following is one of the business areas of supply chain management?
A. Logistics
B. Procurement
D. All of these
Logistics, procurement, and materials management are the three areas of supply chain
management.

Blooms: Remember
Difficulty: 1 Easy
Topic: Technologies Reinventing SCM
109. What is the purchasing of goods and services to meet the needs of the supply chain?
A. Procurement
B. Logistics
D. Bullwhip effect
chain.

Blooms: Remember
Difficulty: 1 Easy
10-73
110. What includes the processes that control the distribution, maintenance, and replacement
of materials and personnel to support the supply chain?
A. Procurement
B. Logistics
D. Bullwhip effect

Blooms: Remember
Difficulty: 1 Easy
111. What includes activities that govern the flow of tangible, physical materials through the
supply chain such as shipping, transport, distribution, and warehousing?
A. Procurement
B. Logistics
D. Bullwhip effect
warehousing.

Blooms: Remember
Difficulty: 1 Easy
10-74
112. What is procurement?
C. Includes activities that govern the flow of tangible, physical materials through the
chain.

Blooms: Remember
Difficulty: 1 Easy
10-75
113. What is logistics?

Blooms: Remember
Difficulty: 1 Easy
10-76
114. What is materials management?
warehousing.

Blooms: Remember
Difficulty: 1 Easy
10-77
115. What acquires raw materials and resources and distributes them to manufacturing as
required?
C. Logistics
D. Cradle to grave
Inbound logistics acquires raw materials and resources and distributes them to

Blooms: Remember
Difficulty: 1 Easy
116. What distributes goods and services to customers?
C. Logistics
D. Cradle to grave
Outbound logistics distributes goods and services to customers. Logistics controls
processes inside a company (warehouse logistics) and outside a company (transport
logistics) and focuses on the physical execution part of the supply chain.

Blooms: Remember
Difficulty: 1 Easy
10-78
117. What includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave?
C. Logistics
D. Cradle to grave
Logistics includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave.

Blooms: Remember
Difficulty: 1 Easy
118. Which of the following questions can procurement help a company answer?

D. All of these.
All of these questions can be answered by procurement.

Blooms: Remember
Difficulty: 1 Easy
10-79
119. Which of the following questions can logistics help a company answer?

D. All of these.
Logistics can answer all of these questions.

Blooms: Remember
Difficulty: 1 Easy
120. Which of the following questions can procurement help a company answer?

D. How can we guarantee that our raw materials meet production needs?
How can we guarantee that our raw materials meet production needs?

Blooms: Remember
Difficulty: 1 Easy
10-80
121. Which of the following questions can logistics help a company answer?

D. What path should the vehicles follow when delivering the goods?
What path should the vehicles follow when delivering the goods?

Blooms: Remember
Difficulty: 1 Easy
122. Which of the following questions can materials management help a company answer?
A. What are our current inventory levels?

B. What items are running low in the warehouse?
C. What items are at risk of spoiling in the warehouse?
D. All of these.
All of these questions can be answered by materials management.

Blooms: Remember
Difficulty: 1 Easy
10-81
123. Which of the following questions can materials management help a company answer?
A. How do we dispose of spoiled items?

B. What laws need to be followed for storing hazardous materials?
C. Which items must be refrigerated when being stored and transported?
D. All of these.
All of these questions can be answered by materials management.

Blooms: Remember
Difficulty: 1 Easy
124. What is 3D Printing?

D. Focus on creating artificial intelligence devices that can move and react to sensory
input.
3D Printing is a process that builds—layer by layer in an additive process—a three-

Blooms: Remember
Difficulty: 1 Easy
10-82
125. What is RFID?

input.
RFID uses electronic tags and labels to identify objects wirelessly over short distances.

Blooms: Remember
Difficulty: 1 Easy
126. What are drones?

input.
Drones an unmanned aircraft that can fly autonomously, or without a human.

Blooms: Remember
Difficulty: 1 Easy
10-83
127. What are robotics?

D. Artificial intelligence devices that can move and react to sensory input.
Robotics focus on creating artificial intelligence devices that can move and react to
sensory input.

Blooms: Remember
Difficulty: 1 Easy
128. What is a process that builds—layer by layer in an additive process—a three-dimensional

solid object from a digital model?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
3D Printing is a process that builds—layer by layer in an additive process—a three-

Blooms: Remember
Difficulty: 1 Easy
10-84
129. What focuses on creating artificial intelligence devices that can move and react to sensory
input?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
Robotics focuses on creating artificial intelligence devices that can move and react to
sensory input.

Blooms: Remember
Difficulty: 1 Easy
130. What are unmanned aircraft that can fly autonomously, or without a human?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
Drones are unmanned aircraft that can fly autonomously, or without a human.

Blooms: Remember
Difficulty: 1 Easy
10-85
131. What uses electronic tags and labels to identify objects wirelessly over short distances?
A. 3D Printing
B. Robotics
C. Drones
D. RFID
RFID uses electronic tags and labels to identify objects wirelessly over short distances.

Blooms: Remember
Difficulty: 1 Easy
132. What is computer-aided design/computer-aided manufacturing (CAD/CAM)?
B. A cultural trend that places value on an individual's ability to be a creator of things as
well as a consumer of things.
C. A community center that provides technology, manufacturing equipment, and
unaffordable.
D. Promotes serialization or the ability to track individual items by using the unique serial

Blooms: Remember
Difficulty: 1 Easy
10-86
133. What is the maker movement?
A. Systems used to create the digital designs and then manufacture the products.
unaffordable.

Blooms: Remember
Difficulty: 1 Easy
10-87
134. What is a makerspace?
unaffordable.
Makerspace is a community center that provides technology, manufacturing equipment,
unaffordable.

Blooms: Remember
Difficulty: 1 Easy
10-88
135. What is an RFID's electronic product code?
A. System used to create the digital designs and then manufacture the products.
unaffordable.
D. Promotion of serialization or the ability to track individual items by using the unique
serial number associated with each RFID tag.
RFID's Electronic Product Code (RFID EPC) promotes serialization or the ability to track

Blooms: Remember
Difficulty: 1 Easy
10-89
136. What are systems are used to create the digital designs and then manufacture the
products?

B. Maker movement
C. Makerspace

Blooms: Remember
Difficulty: 1 Easy
137. What is a cultural trend that places value on an individual's ability to be a creator of things
as well as a consumer of things?

B. Maker movement
C. Makerspace

Blooms: Remember
Difficulty: 1 Easy
10-90
138. What is a community center that provides technology, manufacturing equipment, and
unaffordable?

B. Maker movement
C. Makerspace
Makerspace is a community center that provides technology, manufacturing equipment,
unaffordable.

Blooms: Remember
Difficulty: 1 Easy
139. What promotes serialization or the ability to track individual items by using the unique
serial number associated with each RFID tag?

B. Maker movement
C. Makerspace
RFID's Electronic Product Code (RFID EPC) promotes serialization or the ability to track

Blooms: Remember
Difficulty: 1 Easy
10-91
140. What is supply chain event management (SCEM)?

C. Allows an organization to reduce the cost and time required during the design process
of a product.

Blooms: Remember
Difficulty: 1 Easy
141. What is selling chain management?

of a product.
inquiry to sale.

Blooms: Remember
Difficulty: 1 Easy
10-92
142. What is collaborative engineering?

of a product.

Blooms: Remember
Difficulty: 1 Easy
143. What is collaborative demand planning?

of a product.

Blooms: Remember
Difficulty: 1 Easy
10-93
144. What enables an organization to react more quickly to resolve supply chain issues?


Blooms: Remember
Difficulty: 1 Easy
145. What applies technology to the activities in the order life cycle from inquiry to sale?

inquiry to sale.

Blooms: Remember
Difficulty: 1 Easy
10-94
146. What allows an organization to reduce the cost and time required during the design
process of a product?


Blooms: Remember
Difficulty: 1 Easy
147. What helps organizations reduce their investment in inventory while improving customer
satisfaction through product availability?


Blooms: Remember
Difficulty: 1 Easy
10-95
Essay Questions
148. Define the relationship between supply chain management and decision making.
SCM enhances decision making. Collecting, analyzing, and distributing transactional

information to all relevant parties, SCM systems help all the different entities in the supply
chain work together more effectively. SCM systems provide dynamic holistic views of
organizations. Users can "drill down" into detailed analyses of supply chain activities in a
process analogous to DSS. Without SCM systems, organizations would be unable to make
accurate and timely decisions regarding their supply chains.
Blooms: Analyze
Blooms: Apply
Difficulty: 3 Hard
Topic: IT's role in SCM
10-96
149. Describe the fastest growing components of SCM systems.
Fastest growing SCM components include:
Supply chain event management (SCEM) - enables an organization to react quickly to

Selling chain management - applies technology to the activities in the order life cycle from
inquiry to sale.
Collaborative engineering - allows an organization to reduce the costs required during the
design process of a product.
Collaborative demand planning - helps organizations reduce their investment in inventory,
RFID is also going to change the future of supply chain.
Blooms: Analyze
Blooms: Apply
Difficulty: 3 Hard
Topic: Best practices for SCM implementations
10-97

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Extending the Organization — Supply Chain Management

True / False Questions

1. The customer's customer is upstream in the supply chain.

16. Inventory turnover is the frequency of inventory replacement.

20. Inventory cycle time is the frequency of inventory replacement.

44. Outbound logistics distributes goods and services to customers.

50. Inbound logistics distributes goods and services to customers.

55. The process of 3D printing (additive manufacturing) builds—layer by layer in an additive

58. 3D printing supports procurement.

59. 3D printing supports materials management.

61. RFID supports logistics.

62. RFID supports procurement.

66. Drones support materials management.

68. Robotics supports materials management.

69. Robotics supports procurement.

70. Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are used to

A. Increase the power of its buyers

94. Which of the following represents the bullwhip effect?

100.What is a back order?

A. An unfilled customer order for a product that is out of stock.

101.What is inventory cycle time?

A. An unfilled customer order for a product that is out of stock.

102.What is customer order cycle time?

A. An unfilled customer order for a product that is out of stock.

A. An unfilled customer order for a product that is out of stock.

104.What is supply chain visibility?

105.What is a supply chain planning system?

107.What is the bullwhip effect?

114.What is materials management?

117.What includes the increasingly complex management of processes, information, and

118.Which of the following questions can procurement help a company answer?

A. What quantity of raw materials should we purchase to minimize spoilage?

119.Which of the following questions can logistics help a company answer?

A. What is the quickest way to deliver products to our customers?

A. What is the quickest way to deliver products to our customers?

121.Which of the following questions can logistics help a company answer?

A. What quantity of raw materials should we purchase to minimize spoilage?

A. What are our current inventory levels?

A. How do we dispose of spoiled items?

A. A process that builds—layer by layer in an additive process—a three-dimensional solid

A. A process that builds—layer by layer in an additive process—a three-dimensional solid

126.What are drones?

A. A process that builds—layer by layer in an additive process—a three-dimensional solid

127.What are robotics?

A. A process that builds—layer by layer in an additive process—a three-dimensional solid

133.What is the maker movement?

A. Computer-aided design/computer-aided manufacturing

A. Computer-aided design/computer-aided manufacturing

A. Computer-aided design/computer-aided manufacturing

A. Computer-aided design/computer-aided manufacturing

140.What is supply chain event management (SCEM)?

A. Enables an organization to react more quickly to resolve supply chain issues.

A. Enables an organization to react more quickly to resolve supply chain issues.

142.What is collaborative engineering?

A. Enables an organization to react more quickly to resolve supply chain issues.

143.What is collaborative demand planning?

A. Enables an organization to react more quickly to resolve supply chain issues.

A. Supply chain event management

A. Supply chain event management

A. Supply chain event management

A. Supply chain event management