Chapter 3
Supply Chain Drivers and Metrics

True/False

1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate

2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate

3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate

4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate

5. 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

6. 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

7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy

8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy

9. 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

10. The high utilization facility will have difficulty responding to demand fluctuations. Answer: True Difficulty: Easy

11. The high utilization facility will have no more difficulty