Operations Management 11th Edition By Jay Heizer – Test Bank

Chapter 11 Supply Chain Management

Section 1 The Supply Chain’s Strategic Importance

1) Even though a firm may have a low cost strategy, supply-chain strategy can select suppliers primarily on response or differentiation.
Answer: FALSE
Diff: 2
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

2) The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans.
Answer: FALSE
Diff: 2
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

3) When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.
Answer: FALSE
Diff: 2
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

4) Savings in the supply chain exert more leverage as the firm’s net profit margin decreases.
Answer: TRUE
Diff: 3
Key Term: Supply chain management
AACSB: Reflective thinking skills
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

5) A firm that employs a response strategy should minimize inventory throughout the supply chain.
Answer: FALSE
Diff: 2
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

6) Supply chain decisions are not generally strategic in nature, because purchasing is not a large expense for most firms.
Answer: FALSE
Diff: 1
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

7) Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant.
Answer: FALSE
Diff: 1
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

8) Which of the following characteristics is NOT common to all four of Darden Restaurants’ supply channels?
A) supplier qualification
B) product tracking
C) independent audits
D) refrigeration
E) just-in-time delivery
Answer: D
Diff: 2
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

9) Which of the following would NOT typically be considered as part of a manufacturing firm’s supply chain?
A) suppliers
B) distributors
C) wholesalers
D) retailers
E) landscaping contractors
Answer: E
Diff: 1
Key Term: Supply chain management
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design

10) In most manufacturing industries, which of the following would likely represent the largest cost to the firm?
A) transportation
B) purchasing
C) insurance
D) financing
E) advertising
Answer: B
Diff: 3
Key Term: Supply chain management
AACSB: Reflective thinking skills
Objective: LO1
Learning Outcome: Compare common approaches to supply chain design