Test Bank for Supply Chain Management, 12th Edition by John Langley, Coyle
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Course
Supply Chain Management
Institution
Supply Chain Management
Test Bank for Supply Chain Management: A Logistics Perspective 12e 12th Edition by C. John Langley, Robert A. Novack, Brian Gibson, John J. Coyle. This document includes Multiple Choice Questions (MCQs), True False (T/F) and Short Questions Answers. Answers are given at the end of every chapter. Fu...
Test Bank for Supply Chain Management: A Logistics Perspective 12th E by C. John
Langley, John J. Coyle
Chapter 01 12e
Indicate whether the statement is true or false.
Answers Included ✅
1. The management of supply chains is both an art and a science.
a. True
b. False
2. Porter’s value chain concept, developed as a tool for competitive analysis and strategy, was a complement to
integrated logistics.
a. True
b. False
3. As more collaboration is practiced among organizations in the supply chains, they can lose shared cost savings
and improved customer service.
a. True
b. False
4. Supply and demand have become less volatile as managers have become more adept at controlling the elements.
a. True
b. False
5. Sustainability reporting is a growing practice, either mandatory or voluntary, due to the demand for transparency
in the supply chains.
a. True
b. False
6. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result
was a less competitive environment.
a. True
b. False
7. Private sector companies are placing increased emphasis on strategies to deal with the risk of disruptions,
whether they be natural dictators or other disruptive forces.
a. True
b. False
8. An organization practicing sustainable supply chain management expects its suppliers to conform to the same
sustainability standards it holds.
a. True
b. False
9. The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
a. True
b. False
Page 1
,Name: Class: Date:
Chapter 01 12e
Indicate the answer choice that best completes the statement or answers the question.
10. Henderson Air, Inc. manufactures heating and air conditioning units. Once a day, Henderson’s computerized
inventory system monitors the number of bolts and other fasteners the company needs to maintain production. If
the amount of any type of fastener in inventory dips below preset standards, the computer automatically sends an
order for more fasteners to Acme Fastener and Tool Company. This is an example of:
a. information flowing backward from the customer to the supplier.
b. information flowing forward from the supplier to the customer.
c. information flowing laterally between the customer and the supplier.
d. information flowing forward from the customer to the supplier.
11. In today’s environment, why is the product flow considered a two-way flow?
a. Growing importance of demand flow
b. Increasing focus on cash flow
c. Emerging reverse logistics systems
d. Decreasing importance of information flow
12. Why is the talent management of supply chain professionals considered critical in today’s organizations?
a. It is a recent trend with no historical significance.
b. Supply chains have become less complex.
c. The role of supply chain professionals is diminishing.
d. The complexity of modern supply chains requires expertise.
13. Why do some companies choose a more flexible production schedule despite the potential for higher production
costs?
a. To streamline communication with suppliers
b. To meet spikes in demand
c. To slow down production permanently
d. To decrease production flexibility
14. Ten years ago, Southwest Auto Parts shipped the same number of parts to all of its 147 locations once a month.
Today, Southwest uses a sophisticated inventory system to monitor the stock at each location, adjusting the
number of parts shipped to each store to prevent under- or overstocking. Within an integrated supply chain, this is
an example of a change in:
a. product flow.
b. information flow.
c. cash flow.
d. demand flow.
15. What is the significance of the faster cash-to-cash cycle in the supply chain?
a. Increased working capital for companies
b. Delayed payments from customers
c. Reduced efficiency in supply chain management
d. Minimal impact on financial markets
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,Name: Class: Date:
Chapter 01 12e
16. Acme Fastener and Tool Company had a six-hour work stoppage yesterday, which means the company does not
have its usual number of fasteners stored in inventory. Concerned that the inability to fulfill all current orders may
have an adverse effect on some customers, Acme’s account executives notify all customers, including
Henderson Air, Inc., that there could potentially be a small delay in delivering some orders. This is an example of:
a. information flowing backward from the customer to the supplier.
b. information flowing forward from the supplier to the customer.
c. information flowing laterally between the customer and the supplier.
d. information flowing backward from the supplier to the customer.
17. Why do some companies have what financial organizations call “free” cash flow?
a. They delay billing customers.
b. They collect from customers before paying vendors or suppliers.
c. They focus on slower order fulfilment.
d. They avoid working capital management.
18. Logistics, in its simplest form,
a. is a military term, as it was developed originally to supply the battlefield.
b. combines inbound logistics with the outbound logistics of physical distribution.
c. is another term for transportation management.
d. does not involve customer service or other related functions.
19. How has faster supply chain compression impacted financial flows?
a. Slowing down cash flow
b. Increasing working capital
c. Improving financial viability
d. Reducing order-to-cash cycle
20. Don is comparing quotes from two different shippers. One shipper offered a lower price but will require three
weeks to ship their products, while the other has offered to deliver the goods to his customer in 10 days, but for a
higher price. Don is evaluating:
a. outbound logistics versus inbound logistics.
b. cost performance versus schedule performance.
c. cost versus value.
d. profit versus customer service.
21. How does effective Supply Chain Management (SCM) contribute to inventory levels?
a. It increases inventory levels.
b. It decreases inventory levels.
c. It provides an opportunity to reduce inventory levels.
d. It focuses on centralized inventory control.
Page 3
, Name: Class: Date:
Chapter 01 12e
22. What are the three interrelated components of the triple bottom line (TBL) in the context of sustainability
practices in supply chain management?
a. Profit, Production, Performance
b. People, Planet, Growth
c. Environment, Efficiency, Economy
23. In Porter’s value chain concept, which components are identified as primary contributors to the value chain?
a. Marketing and manufacturing
b. Inbound and outbound logistics
c. Research and development
d. Human resources and finance
24. What is a key challenge for organizations due to globalization and supply chain consolidation?
a. Decreased SKU complexity
b. Simplified transportation requirements
c. Expansion of inventory management issues
d. Reduced trade regulations
25. Most retailers are essentially supply chain companies because they:
a. dominate the consumer market.
b. own their warehouses and trucks.
c. buy products produced by others.
d. engage in off-shore sourcing.
26. Which of the following supply chain flows is considered as “life blood” of the supply chain?
a. Product flow
b. Information flow
c. Financial/cash flow
d. Demand flow
27. Describe the concept of an “integrated logistics management.” What are the benefits of considering outbound
and inbound logistics as a whole?
28. What is the significance of Globalization in Supply Chain Management?
Page 4
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