GSCM Chapter 1 and 2 Practice Questions

Which of the following BEST describes a supply chain?

• A network limited to manufacturers and suppliers

• A series of warehouses that store finished goods

• All parties involved, directly or indirectly, in fulfilling a customer request

• The flow of funds between a firm and its shareholders

Within a single company, which function is not typically considered part of its internal supply chain?

• Product development

• Marketing

• Human resources

• Customer service

The primary purpose of any supply chain is to:

• Minimize transportation costs

• Satisfy customer needs while generating profit for itself

• Maximize inventory turnover

• Reduce lead time to zero

For a business to achieve very high responsiveness, it typically has to sacrifice its

• Efficiency

• Product quality

• Brand recognition

• Access to real‑time information

Which of the following increases BOTH oversupply and stockout risk if it rises?

• Customer value

• Implied demand uncertainty

• Supply chain revenue

• Supply chain surplus

A decision to locate a new distribution center is made during which decision phase?

• Supply chain operation

• Supply chain planning

• Supply chain strategy or design

• Supply chain coordination

Choosing whether to outsource production is MOST closely associated with:

• Operation decisions

• Planning decisions

• Strategy/design decisions

• Tactical pricing decisions

Which of the following statements about supply chain profitability is TRUE?

• It should be measured at the manufacturer level only.

• It equals the total profit shared across all stages of the chain.

• It ignores consumer surplus.

• Higher profitability indicates lower customer value.

Firms make daily decisions such as setting delivery schedules during the __________ phase.

• Strategy/design

• Planning

• Operation

• Surplusallocation

Which attribute below is LEAST likely to increase implied demand uncertainty?

• High price sensitivity

• Short customer leadtime tolerance

• Mature, stable product design

• Highly innovative product requirements