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Chapter3SupplyChainDriversandObstaclesTrue/False1.Themajordriversofsupplychainperformancearefacilities,inventory,transportation,andinformation.Answer:TrueDifficulty:Moderate2.Themajordriversofsupplychainperformancearecustomers,facilities,inventory,transportation,andinformation.Answer:FalseDifficulty:Moderate3.Thetwomajortypesoffacilitiesareproductionsitesandstoragesites.Answer:TrueDifficulty:Moderate4.Thetwomajortypesoffacilitiesaredistributionsitesandstoragesites.Answer:FalseDifficulty:Moderate5.Inventoryisanimportantsupplychaindriverbecausechanginginventorypoliciescandramaticallyalterthesupplychain’sefficiencyandresponsiveness.Answer:TrueDifficulty:Moderate6.Informationispotentiallythebiggestdriverofperformanceinthesupplychainasitdirectlyaffectseachoftheotherdrivers.Answer:TrueDifficulty:Easy7.Informationispotentiallythebiggestdriverofperformanceinthesupplychaineventhoughithaslittleimpactoneachoftheotherdrivers.Answer:FalseDifficulty:Easy8.Afacilitywithlittleexcesscapacitywilllikelybemoreefficientperunitofproductitproducesthanonewithalotofunusedcapacity.Answer:TrueDifficulty:Easy9.Afacilitywithlittleexcesscapacitywilllikelybenomoreorlessefficientperunitofproductitproducesthanonewithalotofunusedcapacity.Answer:FalseDifficulty:Easy10.Thehighutilizationfacilitywillhavedifficultyrespondingtodemandfluctuations.Answer:TrueDifficulty:Easy11.Thehighutilizationfacilitywillhavenomoredifficultyrespondingtodemandfluctuationsthanonewithalotofunusedcapacity.Answer:FalseDifficulty:Easy12.Stockkeepingunit(SKU)storageisthewarehousingmethodologythatusesatraditionalwarehousetostoreallofonetypeofproducttogether.Answer:TrueDifficulty:Moderate13.Warehouseunitstorageisthewarehousingmethodologythatusesatraditionalwarehousetostoreallofonetypeofproducttogether.Answer:FalseDifficulty:Moderate14.Thecomponentsofinventorydecisionsincludecycleinventory,safetyinventory,seasonalinventory,andsourcing.Answer:TrueDifficulty:Easy15.Thecomponentsofinventorydecisionsincludecapacity,cycleinventory,safetyinventory,seasonalinventory,andsourcing.Answer:FalseDifficulty:Easy16.Cycleinventoryisinventorythatisbuiltuptocounterpredictablevariabilityindemand.Answer:FalseDifficulty:Easy17.Seasonalinventoryisinventorythatisbuiltuptocounterpredictablevariabilityindemand.Answer:TrueDifficulty:Moderate18.Companiesusingseasonalinventorywillbuildupinventoryinperiodsoflowdemandandstoreitforperiodsofhighdemandwhentheywillnothavethecapacitytoproduceallthatisdemanded.Answer:TrueDifficulty:Moderate19.Companiesusingseasonalinventorywillmaintainalevelinventoryincreaserateofproductionforperiodsofhighdemand.Answer:FalseDifficulty:Easy20.Acompany’sabilitytofindabalancebetweenresponsivenessandefficiencythatbestmatchestheneedsofthecustomeritistargetingisthekeytoachievingstrategicfit.Answer:TrueDifficulty:Moderate21.Manyobstacles,suchasgrowingproductvarietyandshorterlifecycles,havemadeitincreasinglydifficultforsupplychainstoachievestrategicfit.Answer:TrueDifficulty:ModerateMultipleChoice1.Whichofthefollowingisnotamajordriverofsupplychainperformance?a.Facilitiesb.Inventoryc.Transportationd.Informatione.Alloftheabovearemajordriversofsupplychainperformance.Answer:eDifficulty:Easy2.Whichofthefollowingisnotamajordriverofsupplychainperformance?a.Customersb.Facilitiesc.Inventoryd.Transportatione.InformationAnswer:aDifficulty:Moderate3.Theplacesinthesupplychainnetworkwhereproductisstored,assembled,orfabricatedareknownasa.facilities.b.inventory.c.transportation.d.information.e.customers.Answer:aDifficulty:Easy4.Allrawmaterials,workinprocess,andfinishedgoodswithinasupplychainareknownasa.facilities.b.inventory.c.transportation.d.information.e.customers.Answer:bDifficulty:Easy5.Movinginventoryfrompointtopointinthesupplyisknownasa.facilities.b.inventory.c.transportation.d.information.e.customers.Answer:cDifficulty:Easy6.Thedataandanalysisconcerningfacilities,inventory,transportation,andcustomersthroughoutthesupplychainisknownasa.facilities.b.inventory.c.transportation.d.information.e.customers.Answer:dDifficulty:Easy7.Thetwomajortypesoffacilitiesarea.distributionsitesandstoragesites.b.productionsitesanddistributionsites.c.productionsitesandstoragesites.d.retailsitesanddistributionsites.e.distributionsitesandinventorysites.Answer:cDifficulty:Moderate8.Whichcomponentofthesupplychaindecision-makingframeworkwouldbeestablishedfirst?a.Customerstrategyb.Supplychainstrategyc.Supplychainstructured.Competitivestrategye.ReplenishmentstrategyAnswer:dDifficulty:Moderate9.Whichcomponentofthesupplychaindecision-makingframeworkwouldbeestablishedsecond?a.Customerstrategyb.Supplychainstrategyc.Supplychainstructured.Competitivestrategye.ReplenishmentstrategyAnswer:bDifficulty:Moderate10.Whichcomponentofthesupplychaindecision-makingframeworkwouldbeusedtoreachtheperformanceleveldictatedbythesupplychainstrategy?a.Customerstrategyb.Supplychainstrategyc.Supplychainstructured.Competitivestrategye.ReplenishmentstrategyAnswer:cDifficulty:Easy11.Whichofthefollowingisnotacomponentoffacilitiesdecisions?a.Locationb.C