Chapter 10

Extending the Organization-Supply Chain Management

Multiple Choice Questions
1. What does the average company spend on production needs?
A) Almost 10 percent of every dollar that it earns
B) Almost 20 percent of every dollar that it earns
C) Almost 40 percent of every dollar that it earns
) Almost !0 percent of every dollar that it earns
Ans"er# $evel# %asy &age# 10'
(esponse# )he average company spends nearly half of every dollar that it earns on production needs.
2. What year "as *C+ developed?
A) 1,-0s
B) 1,,0s
C) 2000
) .one of the a/ove
Ans"er# A $evel# +edium &age# 10'
(esponse# *C+s inception occurred in the early 1,,0s.
0. )oday1 *C+ systems focus on e2tending /eyond an organi3ation4s four "alls to influence#
A) *uppliers
B) *uppliers4 supplier
C) Customers4 customer
) All of the a/ove
Ans"er# $evel# %asy &age# 10'
(esponse# *C+ efforts e2tend /eyond an organi3ation4s four "alls to influence the entire supply chain
including customers1 customers4 customer1 suppliers1 and suppliers4 supplier.
4. Which of the follo"ing is not one of the three main lin5s in the supply chain?
A) +aterials flo" from suppliers and their 6do"nstream6 suppliers at all levels
B) )ransformation of materials into semifinished and finished products 7 the organi3ation4s o"n
production processes
C) istri/ution of products to customers and their 6do"nstream6 customers at all levels
) .one of the a/ove
Ans"er# A $evel# +edium &age# 10'
(esponse# +aterials flo" from suppliers and their 6upstream6 suppliers at all levels.
Haag et al., Business Driven Technology 1
!. Which of the follo"ing is the top reason "hy e2ecutives are using *C+ to manage e2tended
enterprises?
A) 8nventory reductions9improvements
B) &roductivity improvements
C) Cost control9savings
) 8mproved visi/ility into demand9supply
Ans"er# C $evel# %asy &age# 10:
(esponse# According to ;igure 0.-1 cost control9savings is the num/er one reason "hy e2ecutives are
using *C+ to manage e2tended enterprises.
'. All of the follo"ing are factors driving supply chain management1 e2cept#
A) <isi/ility
B) *peed
C) Customers
) Competition
Ans"er# C $evel# %asy &age# 10-
(esponse# Customers is not a factor driving supply chain management.
:. Which of the follo"ing statements is accurate?
A) **s assist decision ma5ers in the design and operation of integrated supply chains
B) **s identify opportunities for improvements across the supply chain
C) **s identify opportunities for improvement /eyond the intuition and insights of even the most
e2perience managers
) All of the a/ove
Ans"er# $evel# +edium &age# 10-
(esponse# %ach of the a/ove statements is accurate in regards to *C+ and **s.
-. **s allo" managers to e2amine performance and relationships over the supply chain and among#
A) *uppliers
B) )ransportation options
C) =ther factors that optimi3e supply chain performance
) All of the a/ove
Ans"er# $evel# +edium &age# 10-
(esponse# %ach of the a/ove are used /y **s to allo" managers to e2amine performance and
relationships over the supply chain.
,. Which of the follo"ing is the first principle of supply chain management?
A) Customi3e the logistics net"or5 and focus intensively on the service re>uirements
B) $isten to signals of mar5et demand and plan accordingly
C) *egment customers /y service needs and then tailor services to those particular segments
) .one of the a/ove
Ans"er# C $evel# ?ard &age# 10,
(esponse# *egment customers /y service needs and then tailor services to those particular segments is the
first principle of supply chain management.
Test Bank, Chapter 10 2
Haag et al., Business Driven Technology 3
10. All of the follo"ing are principles of supply chain management1 e2cept#
A) Customi3e the logistics net"or5 and focus intensively on the service re>uirements
B) $isten to signals of mar5et demand and plan accordingly
C) *egment customers /y service needs and then tailor services to those particular segments
) +a5e the sale to suppliers
Ans"er# $evel# ?ard &age# 10,
(esponse# +a5e the sale to the suppliers is part of the *C+ industry /est practices.
11. Which of the follo"ing is the first *C+ industry /est practice?
A) Be future oriented
B) $isten to signals of mar5et demand and plan accordingly
C) Wean employees off traditional /usiness practices
) .one of the a/ove
Ans"er# $evel# ?ard &age# 110
(esponse# +a5e the sale to suppliers is the first *C+ industry /est practice.
12. All of the follo"ing are *C+ industry /est practices1 e2cept#
A) $isten to signals of mar5et demand and plan accordingly
B) Wean employees off traditional /usiness practices
C) Be future oriented
) +a5e the sale to suppliers
Ans"er# A $evel# ?ard &age# 110
(esponse# $isten to signals of mar5et demand and plan accordingly is one of the seven principles of
supply chain management.
Test Bank, Chapter 10 4