$1\mathrm{.}2$ True$/$False Questions

$1)$ The major drivers of supply chain performance are customers, facilities, inventory,

transportation, and information.

$2)$ The two major types of facilities are production sites and storage sites.

$3)$ Inventory is an important supply chain driver because changing inventory policies can

dramatically alter the supply chain's efficiency and responsiveness.

$4)$ Information is potentially the biggest driver of performance in the supply chain as it directly

affects each of the other drivers.

$5)$ The components of inventory decisions include capacity, cycle inventory, safety inventory,

seasonal inventory, and sourcing.

$6)$ Cycle inventory is inventory that is built up to counter predictable variability in demand.

$7)$ Seasonal inventory is inventory that is built up to counter predictable variability in demand.

$8)$ Companies using seasonal inventory will build up inventory in periods of low demand and

store it for periods of high demand when they will not have the capacity to produce all that is

demanded.

$9)$ Companies using seasonal inventory will maintain a level inventory increase rate of

production for periods of high demand.

$10)$ A company's ability to find a balance between responsiveness and efficiency that best

matches the needs of the customer it is targeting is the key to achieving strategic fit.