1. True/False Questions (20*) 1) A supply chain includes only the organizations directly involved in supplying components needed for manufacturing. ( ) 2) A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. ( ) 3) The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders. ( ) 4) The manufacturing cycle occurs at the distributor/manufacturer interface. ( ( ) 5) Companies in the same industry often select very different distribution networks, because the choice of the distribution network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. ( 6) The main advantage of a distribution network with local storage is that it can lower the inventory and facility costs. ( ) thation economies of scale are maintained, increasing 7) As long as inbound transportation economies of scale are maintained, increasing 8) A decrease in the response time customers desire increases the number of facilities required in the network. ( ) 9) Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand. ( ) 10) Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years. ( ) ( ) 11) If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs. ( ) 12) Inventory and facility costs increase as the number of facilities in a supply chain 13) Safety inventory is inventory carried for the purpose of satisfying demand that 13) Safety inventory is inventory carried for the purpose of satisfying demand that 14) As the uncertainty of supply or demand grows, the required level of safety inventories increases. ( ) 15) Tracking order fill rates is important when customers place a high value on the entire order being filled simultaneously. ( ) 16) Sourcing processes include the selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation of supplier performance. () 1