Chapter 3 Supply Chain Drivers and Obstacles True/False 1. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 2. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 3. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 4. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 5. A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity. Answer: False Difficulty: Easy 6. The high utilization facility will have no more difficulty responding to demand fluctuations than one with a lot of unused capacity. Answer: False Difficulty: Easy 7. Warehouse unit storage is the warehousing methodology that uses a traditional warehouse to store all of one type of product together. Answer: False Difficulty: Moderate 8. The components of inventory decisions include capacity, cycle inventory, safety inventory, seasonal inventory, and sourcing. Answer: False Difficulty: Easy 9. Cycle inventory is inventory that is built up to counter predictable variability in demand. Answer: False Difficulty: Easy 10. Seasonal inventory is inventory that is built up to counter predictable variability in demand. Answer: True Difficulty: Moderate 11. A company’s ability to find a balance between responsiveness and efficiency that best matches the needs of the cu...
