CHAPTER 1 TEST QUESTIONS

True-False

1. The first decade of the twenty-first century was a period of rapid change for organizations, especially

businesses.

ANSWER: True, Page 5

2. A key element in Wal-Mart's ability to discount brand name products was an understanding of the

criticality of efficiency in its logistics and supply chain system.

ANSWER: True, Page 5

3. Globalization has had little effect on consumers.

ANSWER: False, Page 7

4. Supply and demand has become less volatile as managers have become more adept at controlling the

elements.

ANSWER: False, Page 7

5. Outsourcing is a fairly new concept.

ANSWER: False, Page 8

6. The world economy still favors the United States and European countries, even though China and India can

participate in the global economy much more readily.

ANSWER: False, Page

7. It is predicted that social networks such as Facebook and Twitter will influence supply chains because of

their impact on customer demand and the speed of information transfer.

ANSWER: True, Page 9