Question 1

Firms now typically use electronic data interchange (EDI)via the Internet to coordinate the flow of materials into manufacturing,through manufacturing,and out to customers.

Accepted Answer

A) True 
 B)False

Question 2

With the advent of flexible manufacturing technologies and mass customization,establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Accepted Answer

A) True 
 B)False

Question 3

One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to

Accepted Answer

A)  depend on one supplier for an important input.
B)  outsource the production of inputs only to advanced countries.
C)  hold an excess buffer stock of inventory.
D)  source inputs from several suppliers located in different countries.
E)  avoid using electronic data interchange.F) A) and E)
G) A) and C)

Question 4

Flexible machine cells cannot be used for mass customization.

Accepted Answer

A) True 
 B)False  False

Question 5

Which of the following is true of high value-to-weight ratio products?

Accepted Answer

A)  They tend to have greater weight than other products in the segment.
B)  Their transportation costs account for a very small percentage of total costs.
C)  They tend to be inexpensive.
D)  There is great pressure to produce these products in multiple locations close to major markets.
E)  These products gain weight as raw materials get processed during transportation.F) B) and E)
G) A) and E)

Question 6

Production and logistics functions must be able to accommodate demands for local responsiveness.Elaborate.

Accepted Answer

Production and logistics functions must ...

Question 7

Which of the following is a recent trend among international businesses regarding make-or-buy decisions?

Accepted Answer

A)  Foreign facilities are considered nothing more than low-cost production facilities.
B)  Research and design operations are restricted to home-country production facilities.
C)  Manufacturing facilities are being based in each major national market.
D)  Firms are avoiding time-based competition with each other.
E)  Outsourcing decisions are expanding to embrace the production of service activities.F) B) and E)
G) C) and D)

Question 8

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Accepted Answer

A)  outsourcing production to developing countries
B)  inshoring production into the home country
C)  selling product patents and technology to competitors
D)  refraining from international trade
E)  establishing top-to-bottom manufacturing operationsF) B) and D)
G) A) and C) E

Question 9

Pink Polka Fashion Inc.,a multinational clothing brand,has plans to expand in the European Union (EU) marketplace.To do so,the EU requires the company to

Accepted Answer

A)  adopt techniques of total quality management.
B)  achieve Six Sigma.
C)  use just-in-time inventory system.
D)  patent its designs and technology.
E)  certify its products under ISO 9000.F) C) and E)
G) A) and E)

Question 10

In recent years,the trend among U.S.firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Accepted Answer

A) True 
 B)False

Question 11

Describe the philosophy of total quality management.A.V.Feigenbaum.Deming identified a number of steps that should be part of any TQM program.He argued that management should embrace the philosophy that mistakes,defects,and poor-quality materials are not acceptable and should be eliminated.He suggested that the quality of supervision should be improved by allowing more time for supervisors to work with employees and by providing them with the tools they need to do the job.Deming recommended that management should create an environment in which employees will not fear reporting problems or recommending improvements.He believed that work standards should not only be defined as numbers or quotas,but should also include some notion of quality to promote the production of defect-free output.He argued that management has the responsibility to train employees in new skills to keep pace with changes in the workplace.In addition,he believed that achieving better quality requires the commitment of everyone in the company.

Accepted Answer

The total quality management (TQM)philos...

Question 12

W.Edward Deming believed that achieving better quality requires the commitment of everyone in a company.A.V.Feigenbaum.Deming argued that management has the responsibility to train employees in new skills to keep pace with changes in the workplace.In addition,he believed that achieving better quality requires the commitment of everyone in the company.

Accepted Answer

A) True 
 B)False

Question 13

Rinker Audio Products is looking to enter Europe.Toward this,the company is studying various European countries to see which ones to invest in.Which of the following location externalities is favorable for Rinker's foreign direct investment in a country?

Accepted Answer

A)  presence of supporting industries
B)  market with many other foreign competitors
C)  lack of intellectual property rights laws
D)  presence of a communist political system
E)  appreciation of local currencyF) A) and B)
G) A) and C)

Question 14

The concept of economies of scale tells us that as plant output expands,unit costs decrease.

Accepted Answer

A) True 
 B)False  True

Question 15

Rinker Audio Products has wide product variety in its product line.A firm with a wide product variety will find it

Accepted Answer

A)  difficult to achieve shorter product runs.
B)  difficult to increase its product sales.
C)  difficult to reduce its unit costs.
D)  easy to realize economies of scale.
E)  easy to reach optimum production efficiency.F) A) and C)
G) A) and B)

Question 16

Uvicon Inc.and Bionor Inc.are firms that compete against each other in the global market.Uvicon has a high level of fixed costs and high minimum efficient scale,whereas Bionor has a low level of fixed costs and low minimum efficient scale.In this scenario,which of the following is true?

Accepted Answer

A)  Uvicon will be better prepared to hedge against potential adverse moves in currencies than Bionor.
B)  Uvicon will benefit from centralizing its production activities and Bionor from decentralizing.
C)  Uvicon will have more bargaining power over contract manufacturers than Bionor.
D)  Uvicon will be better enabled to adapt to changes in consumer demand in regional markets than Bionor.
E)  Uvicon will be better prepared to accommodate demands for local responsiveness than Bionor.F) A) and B)
G) A) and E)

Question 17

Describe the Six Sigma methodology.

Accepted Answer

Six Sigma,the modern successor to total ...

Question 18

If a firm possesses proprietary product technology,the best option for that firm would be to

Accepted Answer

A)  manufacture the product in-house so that it does not lose its competitive advantage.
B)  outsource the production activities to independent suppliers in order to realize economies of scale.
C)  merge with competitors to reduce investments on technology.
D)  share the technology to make the industry more competitive.
E)  transfer the technology to less developed countries.F) D) and E)
G) C) and E)

Question 19

The level of output at which most plant-level scale economies are exhausted is referred to as the maximum efficient scale of output.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an objective of lean production?

Accepted Answer

A)  reducing the quality of a product to keep unit costs low
B)  reducing setup times for complex equipment
C)  replacing product variety with standardized output
D)  decreasing utilization of individual machines through scheduling
E)  increasing the level of minimum efficient scale of outputF) All of the above
G) C) and D)

Exam 15: Global Production and Supply Chain Management

Firms now typically use electronic data interchange (EDI)via the Internet to coordinate the flow of materials into manufacturing,through manufacturing,and out to customers.

Correct Answer
verified

With the advent of flexible manufacturing technologies and mass customization,establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Correct Answer
verified

One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to

Correct Answer
verified

Flexible machine cells cannot be used for mass customization.

Correct Answer
verified
False

Which of the following is true of high value-to-weight ratio products?

Correct Answer
verified

Production and logistics functions must be able to accommodate demands for local responsiveness.Elaborate.

Correct Answer
verified
Production and logistics functions must ...
View Answer

Which of the following is a recent trend among international businesses regarding make-or-buy decisions?

Correct Answer
verified

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Correct Answer
verified
E

Pink Polka Fashion Inc.,a multinational clothing brand,has plans to expand in the European Union (EU) marketplace.To do so,the EU requires the company to

Correct Answer
verified

In recent years,the trend among U.S.firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Correct Answer
verified

Correct Answer
verified
The total quality management (TQM)philos...
View Answer

Correct Answer
verified

Rinker Audio Products is looking to enter Europe.Toward this,the company is studying various European countries to see which ones to invest in.Which of the following location externalities is favorable for Rinker's foreign direct investment in a country?

Correct Answer
verified

The concept of economies of scale tells us that as plant output expands,unit costs decrease.

Correct Answer
verified
True

Rinker Audio Products has wide product variety in its product line.A firm with a wide product variety will find it

Correct Answer
verified

Uvicon Inc.and Bionor Inc.are firms that compete against each other in the global market.Uvicon has a high level of fixed costs and high minimum efficient scale,whereas Bionor has a low level of fixed costs and low minimum efficient scale.In this scenario,which of the following is true?

Correct Answer
verified

Describe the Six Sigma methodology.

Correct Answer
verified
Six Sigma,the modern successor to total ...
View Answer

If a firm possesses proprietary product technology,the best option for that firm would be to

Correct Answer
verified

The level of output at which most plant-level scale economies are exhausted is referred to as the maximum efficient scale of output.

Correct Answer
verified

Which of the following is an objective of lean production?

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

Firms now typically use electronic data interchange (EDI)via the Internet to coordinate the flow of materials into manufacturing,through manufacturing,and out to customers.

Correct AnswerverifiedShow Answer

With the advent of flexible manufacturing technologies and mass customization,establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Correct AnswerverifiedShow Answer

One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to

Correct AnswerverifiedShow Answer

Flexible machine cells cannot be used for mass customization.

Correct AnswerverifiedFalse

Which of the following is true of high value-to-weight ratio products?

Correct AnswerverifiedShow Answer

Production and logistics functions must be able to accommodate demands for local responsiveness.Elaborate.

Correct AnswerverifiedProduction and logistics functions must ...View AnswerShow Answer

Which of the following is a recent trend among international businesses regarding make-or-buy decisions?

Correct AnswerverifiedShow Answer

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Correct AnswerverifiedE

Pink Polka Fashion Inc.,a multinational clothing brand,has plans to expand in the European Union (EU) marketplace.To do so,the EU requires the company to

Correct AnswerverifiedShow Answer

In recent years,the trend among U.S.firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe total quality management (TQM)philos...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Rinker Audio Products is looking to enter Europe.Toward this,the company is studying various European countries to see which ones to invest in.Which of the following location externalities is favorable for Rinker's foreign direct investment in a country?

Correct AnswerverifiedShow Answer

The concept of economies of scale tells us that as plant output expands,unit costs decrease.

Correct AnswerverifiedTrue

Rinker Audio Products has wide product variety in its product line.A firm with a wide product variety will find it

Correct AnswerverifiedShow Answer

Uvicon Inc.and Bionor Inc.are firms that compete against each other in the global market.Uvicon has a high level of fixed costs and high minimum efficient scale,whereas Bionor has a low level of fixed costs and low minimum efficient scale.In this scenario,which of the following is true?

Correct AnswerverifiedShow Answer

Describe the Six Sigma methodology.

Correct AnswerverifiedSix Sigma,the modern successor to total ...View AnswerShow Answer

If a firm possesses proprietary product technology,the best option for that firm would be to

Correct AnswerverifiedShow Answer

The level of output at which most plant-level scale economies are exhausted is referred to as the maximum efficient scale of output.

Correct AnswerverifiedShow Answer

Which of the following is an objective of lean production?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
verified
Production and logistics functions must ...
View Answer

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
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Correct Answer
verified

Correct Answer
verified
The total quality management (TQM)philos...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Six Sigma,the modern successor to total ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified