Chapter 01: Global Supply Chains: The Role and Importance of Transportation

1. Transportation has been described as:

a. The glue that holds the supply chain together
b. The enabler of the underlying tactics and strategies for supply chains
c. An enabler for firms to compete in the growing and complex market place
d. All of these are correct
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 5
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:15 AM
DATE MODIFIED: 3/16/2018 2:22 PM

2. Which of the following countries have the largest export trade flows:
a. China
b. U.S.
c. Germany
d. Japan
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 6
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:20 AM
DATE MODIFIED: 8/13/2015 1:03 AM

3. The top 30 countries account for about what percentage of the world’s exports:
a. 25%
b. 50%
c. 80%
d. 90%
ANSWER: c
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 7
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:23 AM
DATE MODIFIED: 8/13/2015 1:03 AM

4. The volume of global trade over the course of the last 50 years has:
a. Remained almost constant
Copyright Cengage Learning. Powered by Cognero. Page 1
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

b. Doubled
c. Tripled
d. Decreased
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 7
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:28 AM
DATE MODIFIED: 8/13/2015 1:03 AM

5. There was spectacular growth in global trends after 1990. Why?

a. Greater acceptance of foreign produced manufactured
products.
b. Elimination of trade agreements
c. Higher tariffs
d. All of these are correct
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 7
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:30 AM
DATE MODIFIED: 3/16/2018 2:25 PM

6. The top importer in the world is:

a. China
b. Germany
c. Japan
d. U.S.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 9
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 1:58 AM
DATE MODIFIED: 8/13/2015 1:03 AM

7. Which of the following countries had the largest population in 2014?

a. U.S.
b. China
Copyright Cengage Learning. Powered by Cognero. Page 2
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

c. India
d. Indonesia
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 13
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:00 AM
DATE MODIFIED: 8/13/2015 1:03 AM

8. Which of the following countries is expected to have the largest population in 2050?
a. U.S.
b. China
c. India
d. Indonesia
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 13
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:02 AM
DATE MODIFIED: 8/13/2015 1:03 AM

9. In 2010, what was the approximate percentage of people in the United States who were 65 or older?
a. 15%
b. 10%
c. 5%
d. 20%
ANSWER: a
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 16
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:09 AM
DATE MODIFIED: 8/13/2015 1:03 AM

10. In 2030, what is the estimated percentage of the world’s population that will live in urban areas?
a. 30%
b. 40%
c. 50%
d. 60%
Copyright Cengage Learning. Powered by Cognero. Page 3
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

ANSWER: d
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 16
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:13 AM
DATE MODIFIED: 8/13/2015 1:03 AM

11. What area of the world will have the largest number of megacities by 2015?
a. United States
b. South America
c. Africa
d. Asia
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 16
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:17 AM
DATE MODIFIED: 8/13/2015 1:03 AM

12. What positive outcomes have occurred in the global economy with increase interdependence:
a. Lower prices
b. Wider availability of goods
c. New employment opportunities
d. All of these are correct
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 19
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:19 AM
DATE MODIFIED: 3/16/2018 2:27 PM

13. On the micro level, global interdependence has:

a. Increased competition
b. Decreased the level of complexity
c. Reduced outsourcing
d. Increased product lifecycles
ANSWER: a
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 4
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

DIFFICULTY: Hard
REFERENCES: Page 19
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:24 AM
DATE MODIFIED: 8/13/2015 1:03 AM

14. When did the supply chain management concept capture the attention of senior level executives in many
organizations:
a. 1960’s
b. 1980’s
c. 1990’s
d. 2000’s
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 19
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:28 AM
DATE MODIFIED: 8/13/2015 1:03 AM

15. Reverse logistics systems are developed for:

a. Returning unacceptable products
b. Returning rail box cars
c. Eliminating empty back hauls
d. Receiving payment from customers
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 23
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:29 AM
DATE MODIFIED: 8/13/2015 1:03 AM

16. Forward information in the supply chain is utilized to provide:

a. Advanced shipment notices
b. Order status
c. Inventory availability
d. All of these are correct
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
Copyright Cengage Learning. Powered by Cognero. Page 5
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

REFERENCES: Page 25
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:31 AM
DATE MODIFIED: 3/16/2018 2:33 PM

17. Cash flow is important to organizations producing products for sale because it:
a. Reduces the need for working capital
b. Eliminates the need for checks to pay
vendors
c. Provides bonus money for employees
d. None of these are correct
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Pages 25-26
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:33 AM
DATE MODIFIED: 3/16/2018 2:45 PM

18. Which one of the following is not one of the major flows in a supply chain?
a. Information
b. Water
c. Financials/ cash
d. Products
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 23
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:36 AM
DATE MODIFIED: 8/13/2015 1:03 AM

19. One effective method to reduce the bullwhip effect in a supply chain is to replace inventory with:
a. Information
b. Outsourcing
c. TOFC service
d. Transportation
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 25
Copyright Cengage Learning. Powered by Cognero. Page 6
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:37 AM
DATE MODIFIED: 8/13/2015 1:03 AM

20. Which of the following is consistent with a green supply chain strategy?
a. Reduce packaging materials
b. Ship small loads, more frequently
c. Use motor carriers instead of railroads
d. Shift to a group of suppliers located at a more distant
location
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 24
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:40 AM
DATE MODIFIED: 8/13/2015 1:03 AM

21. Which of the following countries are in the BRIC?

a. China, Bulgaria, Romania, and Indonesia
b. Brazil, Russia, India, and China
c. Mexico, Honduras, Panama, and El Salvador
d. Britain, Canada, Italy, and Russia
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 3
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 3/8/2018 2:01 AM
DATE MODIFIED: 3/8/2018 2:07 AM

22. Adam Smith wrote a book entitled:

a. The China Syndrome
b. Total Cost of Transport
c. The Logistician’s Guide
d. Wealth of Nations
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 11
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 7
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

HAS VARIABLES: False

DATE CREATED: 3/8/2018 2:12 AM
DATE MODIFIED: 3/8/2018 2:13 AM

23. Another name for the Extended Enterprise perspective of the Supply Chain is:
a. Boundary Spanning
b. Slow and Low
c. Flat Earth
d. Absolute Advantage
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 22
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 3/8/2018 2:14 AM
DATE MODIFIED: 3/8/2018 2:15 AM

24. The size of a country’s population is important because:

a. Governments must provide food
b. Land use increases
c. Labor is a prime factor for economic growth
d. Transportation networks must be developed
ANSWER: c
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 26
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 3/8/2018 2:17 AM
DATE MODIFIED: 3/8/2018 2:18 AM

25. Advantages to globalization include:

a. Lower prices
b. Wider availability of goods and services
c. New employment opportunities
d. All of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 18
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 8
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

DATE CREATED: 3/8/2018 2:19 AM

DATE MODIFIED: 3/8/2018 2:19 AM

26. What is a “graying population?”

ANSWER: A term that some economists and demographers use to describe a country with an increasing
number of citizens who are older the median age of the world population.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 14
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:43 AM
DATE MODIFIED: 8/13/2015 1:03 AM

27. What is a megacity?

ANSWER: A relatively new term to describe cities with populations over 10
million.
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 16
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:51 AM
DATE MODIFIED: 8/13/2015 1:03 AM

28. What are the two important dimensions of technology?

ANSWER: Technology can be viewed as internal agent of change for organizations and also an external change
agent.
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 17
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:53 AM
DATE MODIFIED: 8/13/2015 1:03 AM

29. Why was the development of the internet such an important external change agent?
ANSWER: It made information available in real time to large segments of the population via their personal
computers and other devices.
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 17
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:54 AM
Copyright Cengage Learning. Powered by Cognero. Page 9
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

DATE MODIFIED: 8/14/2015 8:34 AM

30. Describe “3D” printing.

ANSWER: Also called additive manufacturing which will allow corporations and other organizations to
duplicate or make a physical copy of an object similar to what happens with 2-D copy machines.
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 18
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:55 AM
DATE MODIFIED: 8/13/2015 1:03 AM

31. What factors have accounted for growth in the volume of global trade?
ANSWER: A number of factors came into play including economic growth, trade agreements, lower tariffs and
a greater acceptance of importing finished products that were manufactured in other countries as
opposed to only importing raw materials
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 5
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:56 AM
DATE MODIFIED: 8/13/2015 1:03 AM

32. Differentiate between absolute and comparative advantage.

ANSWER: While both concepts provide a rationale for trade between regions or countries, there is a difference.
Absolute advantage postulates the trade is beneficial when the two regions or countries each have
an advantage in producing one of two products in terms of cost. Absolute advantage recommends
that they each produce the one product where they have the advantage and then trade which will be
mutually beneficial. Whereas comparative advantage postulates that even if one country or region
has a low cost advantage for both products, trade can be beneficial if the low cost country has a
comparative advantage in one of the products
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 11
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:58 AM
DATE MODIFIED: 8/13/2015 1:03 AM

33. What other demographics in addition to the size of a country’s population are important for economic growth?
ANSWER: In addition to size, education levels and skills are important indicators of labor efficiency. The age
distribution of the country’s population is also important. A younger population usually means a
larger labor pool and more potential for families and market demand. The general health of citizens
and average life span are of interest.
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 10
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

DIFFICULTY: Medium
REFERENCES: Page 13
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 2:59 AM
DATE MODIFIED: 8/13/2015 1:03 AM

34. What is a megacity and why are they important for the future?
ANSWER: The term megacity is relatively new and used to describe urban areas with populations over ten
million. They represent a worldwide trend of populations migrating to urban areas. In developing
nations, they will present major challenges to develop the infrastructure, transportation, and utilities
to adequately support the population.
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 13
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:00 AM
DATE MODIFIED: 8/13/2015 1:03 AM

35. Why was information technology so impactful for businesses and other organizations?
ANSWER: Information technology has been a major factor for increasing competition, changing business
models and the obsolescence of some business. It has expedited outsourcing strategies and provided
an opportunity for businesses, large or small, to participate in supply chains over a wider
geographic area. Information has afforded opportunity and also disruption and the end is not
insight.
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 17
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:02 AM
DATE MODIFIED: 8/13/2015 1:03 AM

36. What impact has robotics had on supply chains?

ANSWER: The skills of humans combined with the precision and efficiency of robots has led to improved
productivity in distribution centers where the robots store, retrieve and pack goods for distribution.
More is yet to come!
POINTS: 1
DIFFICULTY: Medium
REFERENCES: Page 17
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:05 AM
DATE MODIFIED: 8/13/2015 1:03 AM

Copyright Cengage Learning. Powered by Cognero. Page 11

Chapter 01: Global Supply Chains: The Role and Importance of Transportation
37. Why has P&G decided to jettison about half of their brands?
ANSWER: Like many large consumer product companies, P&G added new brands/products to increase gross
sales, but over time in the more competitive global environment, the large number of brands
become a disadvantage and about half of the brands produced “marginal” sales. They also lost some
of their flexibility and responsiveness to respond to changes in the marketplace to remain
competitive.
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 20
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:05 AM
DATE MODIFIED: 8/13/2015 1:03 AM

38. Explain the three major flows in a supply chain.

ANSWER: They are: product flow, information flow, and financial/cash flow. Product flow is a traditional area
of importantance for logistics to acquire, make and distribute finished products in an efficiently and
timely manner. You can think of it as the supply chain engine. Information flow is the fuel of the
supply chain powering materials and products through the chain from beginning to end. The
financial cash flow is the payback for accomplishing the objectives of the supply chain efficiently
and effectively.
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 23
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:07 AM
DATE MODIFIED: 8/13/2015 1:03 AM

39. What is the bullwhip effect and why is it important?

ANSWER: When there is uncertainty about demand and long intervals between information flows, inventory
builds up in the supply chain to prevent stock outs. The further back in the supply chain an
organization is from the market, the greater the uncertainty usually the higher the level of safety
stock.
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Page 25
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:08 AM
DATE MODIFIED: 8/13/2015 1:03 AM

40. Describe the three phases of development for supply chain concept.
ANSWER: The three phases are: physical distribution, business logistics, and supply chain management.
Physical distribution was developed during the 1960s with a focus on the outbound side of a
producer. In other words, after a product was produced until it reached the customer with a focus
upon minimizing the total cost of that phase. Business logistics added the inbound side with a
Copyright Cengage Learning. Powered by Cognero. Page 12
Chapter 01: Global Supply Chains: The Role and Importance of Transportation

continued focus upon lowest total cost. The third phase was supply chain management which
focused on the extended enterprises and the three major flows—products, information and cash.
POINTS: 1
DIFFICULTY: Hard
REFERENCES: Pages 20-21
QUESTION TYPE: Essay
HAS VARIABLES: False
DATE CREATED: 8/8/2015 3:09 AM
DATE MODIFIED: 8/13/2015 1:03 AM

Copyright Cengage Learning. Powered by Cognero. Page 13