1) Each stage in a supply chain is connected through the flow of products, information, and

funds. These flows often occur in both directions and are usually managed by

A) pricing department.

B) one of the stages.

C) upper management.

D) engineering department.

Answer: B

Diff: 2

Topic: 1.1: What Is a Supply Chain?

AACSB: Application of knowledge

Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain

decisions on t

2) A supply chain features a constant flow of

A) information, product and funds.

B) personnel, information, and policies.

C) processes, funds, and product.

D) product, processes, and support.

Answer: A

Diff: 2

Topic: 1.1: What Is a Supply Chain?

AACSB: Application of knowledge

Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain

decisions on the success of a firm.

3) Which of these words best describes a typical supply chain structure?

A) Static

B) Customer

C) Cyclical

D) Network

Answer: D

Diff: 2

Topic: 1.1: What Is a Supply Chain?

AACSB: Application of knowledge

Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain

decisions on the success of a firm.

4) Which statement about supply chains is best?

A) New product development is not a supply chain function.

B) If a supplier uses a shipping company to send product to a customer, the shipping company is

technically not a supply chain member.

C) Funds in a supply chain flow upstream only.

D) Flows in a supply chain may be managed by an intermediary.

Answer: D

Diff: 3

Topic: 1.1: What Is a Supply Chain?

AACSB: Application of knowledge

Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain

decisions on the success of a firm.

5) Which sequence of stages is typical for product flow in a supply chain?

A) Supplier → Manufacturer → Distributor

B) Retailer → Distributor → Customer

C) Manufacturer → Retailer → Distributor

D) Supplier → Customer → Retailer

Answer: A

Diff: 1

Topic: 1.1: What Is a Supply Chain?

AACSB: Application of knowledge

Objective: LO 1.1: Discuss the goal of a supply chain and explain the impact of supply chain

decisions on the success of a firm.

6) The drive for strategic fit should come from

A) the supply chain manager.

B) the strategic planning department.

C) the highest levels of the organization, such as the CEO.

D) middle management.

Answer: C

Diff: 3
Topic: 2.2 Achieving Strategic Fit

7) The important points to remember about achieving strategic fit are

A) there is one best supply chain strategy for all competitive strategies.

B) there is right supply chain strategy with high responsiveness.

C) there is a right supply chain strategy for a given competitive strategy.

D) all of the above

Answer: C

Diff: 3

Topic: 2.2 Achieving Strategic Fit

8) The preferable supply chain strategy for a firm that sells multiple products and serves

customer segments with very different needs is to

A) set up independent supply chains for each different product or customer segment.

B) set up a supply chain that meets the needs of the highest volume product or customer

segment.

C) tailor the supply chain to best meet the needs of each product's demand.

D) set up a supply chain that meets the needs of the customer segment with the highest implied

uncertainty.

Answer: C

Diff: 3

Topic: 2.2 Achieving Strategic Fit

9) Which of the following would not be a demand and supply characteristic toward the

beginning stages of a product's life cycle?

A) Demand is very uncertain and supply may be unpredictable.

B) Demand has become more certain and supply is predictable.

C) Margins are often high and time is crucial to gaining sales.

D) Product availability is crucial to capturing the market.

Answer: B

Diff: 2

Topic: 2.2 Achieving Strategic Fit

10) Which of the following would be a demand and supply characteristic toward the beginning
stages of a product's life cycle?

A) Demand has become more certain and supply is predictable.

B) Margins are lower due to an increase in competitive pressure.

C) Product availability is crucial to capturing the market.

D) Price becomes a significant factor in customer choice.

Answer: C

Diff: 2

Topic: 2.2 Achieving Strategic Fit

11) The warehousing methodology that uses a traditional warehouse to store all of one type of

product together is

A) warehouse unit storage.

B) stock keeping unit (SKU) storage.

C) job lot storage.

D) cross-docking.

Answer: B

Diff: 2

Topic: 3.4 Facilities

12) The warehousing methodology in which all the different types of products needed to perform

a particular job or satisfy a particular type of customer are stored together is

A) warehouse unit storage.

B) stock keeping unit (SKU) storage.

C) job lot storage.

D) cross-docking.

Answer: C

Diff: 2

Topic: 3.4 Facilities

13) The following warehousing methodology is one in which goods are not actually warehoused

in a facility. Instead, trucks from suppliers, each carrying a different type of product, deliver

goods to a facility. There the inventory is broken into smaller lots and quickly loaded onto store-

bound trucks that carry a variety of products, some from each of the supplier trucks.
A) Warehouse unit storage

B) Stock keeping unit (SKU) storage

C) Job lot storage

D) Cross-docking

Answer: D

Diff: 2

Topic: 3.4 Facilities

14) All of the following are components of inventory decisions except

A) cycle inventory.

B) safety inventory.

C) last mile delivery

D) sourcing.

Answer: C

Diff: 1

Topic: 3.5 Inventory

15) Which of the following is not a warehousing methodology?

A) Warehouse unit storage

B) Stock keeping unit (SKU) storage

C) Job lot storage

D) Cross-docking

Answer: A

Diff: 2

Topic: 3.4 Facilities

16) Which of the following would not be the result of a poor/inappropriate distribution network?

A) High profitability

B) Low level of customer service

C) High cost

D) Poor profitability

Answer: A

Diff: 1

Topic: 4.2 Factors Influencing Distribution Network Design

AACSB: Application of knowledge

Objective: LO 4.1: Identify the key factors to be considered when designing a distribution

network.

17) The number of different products/configurations that a customer desires from the distribution network is

A) response time.

B) product variety.

C) product availability.

D) customer experience.

Answer: B

Diff: 1

Topic: 4.2 Factors Influencing Distribution Network Design

AACSB: Application of knowledge

Objective: LO 4.1: Identify the key factors to be considered when designing a distribution

network.

18) The probability of having a product in stock when a customer order arrives is

A) response time.

B) product variety.

C) product availability.

D) customer experience.

Answer: C

Diff: 1

Topic: 4.2 Factors Influencing Distribution Network Design

AACSB: Application of knowledge

Objective: LO 4.1: Identify the key factors to be considered when designing a distribution

network.

19) The ease with which the customer can place and receive their order as well as other aspects of value that
the sales staff provides is

A) customer experience.

B) order visibility.

C) product availability.

D) response time.

Answer: A

Diff: 1
Topic: 4.2 Factors Influencing Distribution Network Design

20) Case study: Overview

Overview : The year 2008 was the lowest point of diamond industry both for wholesalers and retailers. World
Federation of Diamond announces to reduce the supply of new gems entering the market as an effect to
reduce the supply. The situation worsened as competition for the shrinking number of customers became
fiercer. In such a difficult environment, it was hard to judge which factors could best help different jewelry retails
succeed.

Brand Zales: This company was found by Morris Zale, William Zale and Ben Lipshy in 1924.
The marketing strategy of this company is to offer a credit plan of “ a penny and a dollar a
week.” Within the success, it allows them to expand the company with 12 stores in Oklahoma and Texas by
1941. Unfortunately, after a decade running the business, the company hit the problems from a
delay of new merchandise until the lost of their own customers. Within the problems, the company has to lay
off some of their workers with the hope to enhance the company profitability and improve its
overall effectiveness. However, with all the plans, the company lost more than $200 million.

Brand Blue Nile: Blue Nile established in 1999, by Mark Vandon and Dough Williams. It is headquartered in
Seattle, WA and is one of the leading online retailers of diamond and fine jewelry. When it comes to selling the
product, the company has it own philosophy as follows: “ Offer high- quality diamonds and fine
jewelry at outstanding prices”. When people visit their Web site, people can find extraordinary
jewelry, useful guidance, and easy-to-understand jewelry education that perfect for occasions. This
jewelry company also offers a low pressure selling tactics that entirely focused on education. With
explaining the four terms of Cs- cut, color, clarity and carat- the company allowed their customer to build their
own ring along with the four Cs terms. In 2008 turned out to be a challenging year for Blue Nile due to the sales
drop by just under 10%. However, in year 2009, the company can retrieve the company sales and income.

Brand Tiffany: This jewelry company opened it first flag on 1837 as a stationery and fancy good emporium in
NYC. Thanks to their silver designs, the company enjoys their tremendous success all over the world. After more
than a century enjoying their success, the company went public in 1987. There are several high-end products
that this company offers included diamond rings, wedding bands, gemstone jewelry and gemstone
bands with diamonds as the primary gemstone. Tiffany’s has its own manufacturing facilities in Rhode Island and
New York but also continued to source from the third parties. Until 2003, the company never purchased a
rough diamonds, because they want focus entirely on the purchase of polished stones. Since
than, the company established its own diamond processing operation in Canada, China and many more.
But, not all the rough diamonds will be use by the Tiffany’s. Furthermore, they will do the quality
control and separate the diamond that not meets the company standard. Because of that, the important parts
of the success associate with quality, luxury and exclusivity.

Which advice is TRUE for Tiffany for its strategy and structure?

A) Need to gain control in their inventory and limit their lower demand
B) Continue focusing on their brand image by offering outstanding products and
great service
C) Selling lower cost diamonds at retail stores
D) Continue focusing on their selling tactics and could re-structure their marketing strategy to
reach out to new customers

Right answer: B

21) Which of the following is not a factor influencing network design decisions in supply

chains?
A) Strategic factors

B) Tactical factors

C) Macroeconomic factors

D) Political factors

Answer: B

Diff: 2

Topic: 5.1 The Role of Network Design in the Supply Chain

22) Firms focusing on cost leadership tend to

A) locate facilities close to the market they serve.

B) locate facilities very far from the market they serve.

C) find the lowest cost location for their manufacturing facilities. (cơ sở sản xuất của họ)

D) select a high-cost location to be able to react quickly.

Answer: C

Diff: 2

Topic: 5.2 Factors Influencing Network Design Decisions

Learning Outcome: Compare common approaches to supply chain design

23) Firms focusing on responsiveness tend to

A) locate facilities close to the market they serve.

B) locate facilities very far from the market they serve.

C) find the lowest cost location for their manufacturing facilities.

D) select a high-cost location to be able to react slowly.

Answer: A

Diff: 2

Topic: 5.2 Factors Influencing Network Design Decisions

Learning Outcome: Compare common approaches to supply chain design

24) Which of the following is not one of the various facilities in a global supply chain network?

A) Offpost facility (cơ sở tiền đồn)

B) Source facility

C) Server facility

D) Contributor facility
Answer: A

Diff: 2

Topic: 5.2 Factors Influencing Network Design Decisions

25) A facility that serves the role of being a low-cost supply source for markets located outside

the country where the facility is located is

A) an offshore facility. 1 cơ sở ngoài khơi

B) a source facility.

C) a server facility.

D) a contributor facility.

Answer: A

Diff: 2

Topic: 5.2 Factors Influencing Network Design Decisions

26) A facility that also has low cost as its primary objective, but its strategic role is broader than that of an
offshore facility is

A) an offshore facility.

B) a source facility.

C) a server facility.

D) a contributor facility.

Answer: B

Diff: 2

Topic: 5.2 Factors Influencing Network Design Decisions

27) Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.)
are the primary concern of

A) the shipper.

B) the supplier.

C) the manufacturer.

D) the carrier.

Answer: D

Diff: 3

Topic: 14.1 The Role of Transportation in a Supply Chain

AACSB: Application of knowledge

Objective: LO 14.1: Understand the role of transportation in a supply chain

28) ________ carriers offer a very fast and fairly expensive mode of transportation for cargo.
A) Air

B) Truck

C) Rail

D) Water

Answer: A

Diff: 1

Topic: 14.2 Modes of Transportation and Their Performance Characteristics

AACSB: Application of knowledge

Objective: LO 14.2: Evaluate the strengths and weaknesses of different modes of transportation.

29) Which transportation network design option has the elimination of intermediate warehouses and its
simplicity of operation and coordination as its major advantage?

A) Direct shipping network

B) Direct shipping with milk runs

C) All shipments via central DC

D) Shipping via DC using milk runs

Answer: A

Diff: 1

Topic: 14.4 Design Options for a Transportation Network

AACSB: Application of knowledge

Objective: LO 14.4: Identify the relative strengths and weaknesses of various transportation

network design options.

30) Companies using seasonal inventory will _______a level inventory increase rate of production for periods
of high demand.

A) increase

B) decrease

C) maintain

D) keep

Answer: C