Ch1 Understanding the Supply ChainTrue/False1. A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.Answer: False2. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.Answer: True3. A supply chain could be more accurately described as a supply network or supply web.Answer: True4. The objective of every supply chain is to maximize the overall value generated. Answer: True5. The objective of every supply chain is to maximize the value generated for the manufacturing component of the supply chain.Answer: False6. Every supply chain must include all 5 stages. Answer: False7. The cycle view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.Answer: True8. The push/pull 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.Answer: True9. The push/pull view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.Answer: False10. The replenishment cycle occurs at the retailer/distributor interface. Answer: True11. The replenishment cycle occurs at the distributor/manufacturer interface. Answer: False12. The replenishment cycle is initiated when a supermarket runs out of stock of a particular item.Answer: True13. The replenishment cycle is initiated when customers load items intended for purchase into their carts.Answer: False14. The manufacturing cycle occurs at the distributor/manufacturer interface. Answer: True15. The manufacturing cycle occurs at the manufacturer/supplier interface. Answer: False16. The procurement cycle occurs at the manufacturer/supplier interface. Answer: True17. The procurement cycle occurs at the retailer/distributor interface. Answer: False18. The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.Answer: True19. The cycle view of the supply chain is useful when considering operational decisions, because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.Answer: False20. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. Answer: True21. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because it specifies the roles and responsibilities of each member of the supply chain.Answer: False22. Pull processes may also be referred to as reactive processes. Answer: True23. Pull processes may also be referred to as speculative processes. Answer: False24. Push processes may also be referred to as speculative processes. Answer: True25. Push processes may also be referred to as reactive processes. Answer: FalseAnswer the following question simply.1. Which stages are included within a typical supply chain?a. Customersb. Retailersc. Wholesalers/Distributorsd. Manufacturers2. Successful supply chain management requires which decision phases?a. supply chain strategy/designb. supply chain planningc. supply chain operation3. Which cycles are included in the supply chain cycle view?a. Customer order cycleb. Replenishment cyclec. Manufacturing cycled. Procurement cycleEssay/Problems1. Explain the 3 decision phases (categories) that must be made in a successful supply chain.Answer: The 3 decision phases that occurwithin a supply chain are supply chain strategy (or design), supply chain planning and supply chain operation. Decisions relate to the flow of information, product and funds. The difference between categories depends upon the frequency of each decision and the time frame over which it has an impact. During the supply chain strategy phase, a company determines what the chain s configurations will be, how resources will be allocated, and what processes each stage will perform. This will establish the structure of the supply chain for several years. Supply chain planning deals with decisions with a time frame from 3 months up to a year. The planning phase must work within the constraints established in the strategy phase. Planning decisions include which markets to supply from which locations, subcontracting of manufacturing, inventory policies and timing and size of marketing promotions. The supply chain operation phase operates on a weekly or daily time horizon and deals with decisions concerning individual customer