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Question No. 1 The primary objective of supply chain management is: A. minimizing transportation costs.

B. reducing inventory levels.

C. taking a systems approach.

D. implementing advanced technologies.

Answer: C Question No. 2 The primary reason for the evolution of the supply chain is: A. fewer rejects due to poor quality.

B. increased on-time delivery.

C. increased cost savings.

D. increased communication.

Answer: D Question No. 3 Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

A. Technology barriers B. Security C. Corporate culture D. Return on investment (ROI) Answer: C Question No. 4 Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

A. Inventory turnover ratio can be reduced.

B. Aggregate demand is more accurate than disaggregate demand.

C. The planning time fence can be adjusted as needed.

D. The supplier shares some risk for holding inventory.

Answer: B Question No. 5 Which of the following considerations is an important supply chain design decision?

A. Product design B. Selecting supporting information systems C. Identifying labor force requirements D. Identifying training programs

Answer: B

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