Highlights
QUIZ QUESTIONS
True/False
1. In the physical goods supply chain, information moves to the left and material to the right.
2. Customer demand variability is the most difficult factor to determine in a goods supply chain.
3. In the past, the flow of goods in a physical supply chain was described as a pull system.
4. Information moves in both directions in the service chain for mobile-workers.
5. Knowledge management is a strategy to retain skilled workers.
6. Bidirectional optimization could be considered an example of a win-win outcome.
7. The service inventory-hedging strategy benefits the firm by directing skill-enhancing activities
into idle time slots.
8. Service tangibility increases as the focus of the service moves from property to people to
process.
9. Product postponement is the strategy of stocking a product in generic form for later
customization.
10. The bullwhip effect is a phenomenon in the physical supply chain that describes the inventory
stocking levels at various stages.
11. A good supply chain management strategy places a strong emphasis on promotional pricing.
12. Reactive forecasting was used for capacity planning before the implementation of physical goods
supply chain management.
13. Conversion is a primary value component of service chain management.
14. Customer-supplier duality acknowledges the customer inputs in a service relationship.
15. A bank is an example of a service provider with a single-level bi-directional service supply
relationship.
16. Transfer enhances productive capacity by enabling customer self-service.
17. Need identification is the first step in the outsourcing process model.
18. The flow of service is activated upon demand as a result of effective service chain management.
19. Outsourcing can provide access to the latest technology without investment.
20. Outsourcing can expose a firm to data security and customer privacy issues.
21. The Walmart and Procter & Gamble experience illustrates the unintended consequences of
independent decision making in a goods supply chain.
22. Profit-per-partner is the multiplication of “margin” and “productivity.”
23. Outsourcing a service incurs transaction costs such as loss of employee loyalty.
24. Social media blends technology and social interaction for the co-creation of value.
25. The link between payment histories and risky driving behavior is used to price insurance policies.
Multiple Choice
1. The physical goods supply chain contains all but one of the following elements:
a. competitor.
b. distributor.
c. retailer.
d. customer.
2. The impact of the production element on physical goods supply chain management was _____
before and _____ after.
a. push , pull
b. inflexible, flexible
c. vertical, virtual
d. multinational, global
3. Sources of value in service chain management include all but one of the following:
a. bidirectional optimization.
b. management of productive capacity.
c. management of mobile workers.
d. management of perishability.
4. Strategies to improve productive capacity include all but one of the following:
a. embellishment.
b. transfer.
c. replacement.
d. bidirectional optimization.
5. The impact of pricing on service chain management was _____ before and _____ after.
a. high, low
b. passive, active
c. static, dynamic
d. fixed, variable
6. All but one of the following is a reason for outsourcing services.
a. Avoids coordination expenses and delays
b. Allows the firm to focus on its core competence.
c. Provides access to latest technology.
d. Leverages benefits from supplier economies of scale.
7. The two-way classification for the taxonomy for outsourcing business services contains six cells.
Which one of the following is not a descriptive title for one of the cells?
a. Facility support
b. Professional
c. Employee
d. Facilitator
8. When outsourcing facilitator services, which one of the following is not a consideration?
a. Knowledge of alternate vendors is important.
b. Involvement of end user in vendor identification.
c. Experience with particular industry is important.
d. Detailed specification written by user.
9. Making knowledge available to customers at low cost is called:
a. embellishment.
b. transfer.
c. replacement.
d. co-production.
10. The cell category titled "employee development" in the taxonomy for outsourcing business
services includes all but one of the following services:
a. Food service
b. Training
c. Education
d. Medical care
11. Which of the following is not a source of uncertainty in managing a supply chain?
a. Supplier delivery performance
b. Manufacturing reliability
c. Customer demand
d. Quality control
13. _______ is not part of the service chain concept.
a. Conversion
b. Distribution
c. Inventory management
d. Knowledge management
14. Which of the following service providers likely would be involved in a single-level bi-directional
service supply relationship?
a. Pharmacy
b. Professor
c. Garage
d. Mortgage company
15. All but one of the following is a managerial implication of bi-directional relationships:
a. Vendor selection based on reputation
b. Service supply relationships are hubs
c. Service capacity analogous to inventory
d. Quality variation of customer inputs
16. The “employment support” category in the taxonomy for outsourcing business services falls
under _________ importance of service and __________ focus of service.
a. high, people
b. low, process
c. high, process
d. low, people
17. Travel booking is a service that falls in the _________ category of outsourcing business service.
a. facility support
b. employee development
c. facilitator
d. professional
18. All but one of the following is a caution when considering outsourcing services:
a. Loss of direct control over quality.
b. Jeopardize employee loyalty because of job-loss fears.
c. Costs might increase.
d. In-house capability to perform service will atrophy.
19. All but one of the following depicts the impact of service chain management:
a. Proactive demand management.
b. Variable pricing.
c. Real-time tracking.
d. Pull system for flow of information.
20. Which one of the following depicts the impact of goods supply chain management?
a. EDLP
b. Functional silos
c. Reactive forecasting
d. Push system
21. _________ is not a reason for outsourcing services.
a. Leveraging benefits from a supplier
b. Allowing the firm to focus on core competence
c. Providing access to latest technology
d. None of the above
22. ________ is(are) the highest level of professional body of knowledge.
a. Advanced skills
b. System understanding
c. Self-motivated creativity
d. Cognitive knowledge
23. _________ costs are considered a transaction cost associated with outsourcing a service.
a. Search
b. Bargaining
c. Enforcement
d. Training
24. A ________ project is not project category for a professional firm.
a. routine
b. brains
c. grey hair
d. procedure
25. _________ is a characteristic of social media that is not useful to service firms.
a. Easy access
b. Requiring specialized skills
c. Immediacy
d. Flexibility
26. Social media “netiquettes” includes all but one of the following:
a. disclosure.
b. discrimination.
c. honesty.
d. reciprocation.
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