Question 1

According to the concept of economies of scale, as plant output expands

Accepted Answer

A)   productivity declines.
B)   total costs decrease.
C)   unit costs decrease.
D)   utilization of capital declines.

Question 2

Just-in-time systems reduce product quality although it brings about huge cost savings.

Accepted Answer

A) True 
 B)False

Question 3

Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm's manufacturing processes and products be certified under a quality standard known as

Accepted Answer

A)   Six Sigma.
B)   ISO 9000.
C)   Kaizen.
D)   total quality management.

Question 4

________ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

Accepted Answer

A)   An outpost factory
B)   A source factory
C)   A contributor factory
D)   A lead factory

Question 5

An advantage of buying component parts, or even an entire product, from independent suppliers is that

Accepted Answer

A)   it can make planning, coordination, and scheduling of adjacent processes easier for the firm.
B)   the firm can strategically manage inventory.
C)   the firm will be able to maintain strict control over its proprietary technology.
D)   the firm will have access to superior quality raw materials and will deliver high quality products.

Question 6

How do product factors affect the decision of where to locate production? Where will you locate your firm's production plant if your firm produces refined sugar?

Accepted Answer

There are two product factors that affec...

Question 7

Discuss the strategic objectives of the production and logistics functions of an international firm.

Accepted Answer

The production and logistics functions o...

Question 8

RSA is a bicycle manufacturing company. Which of the following is a make-or-buy decision that the company will have to make?

Accepted Answer

A)   Should the company increase its responsiveness toward the retailers?
B)   What are the products that the company should manufacture?
C)   Should the company outsource production to a low-cost vendor?
D)   What should be the pricing strategy for the company's product?

Question 9

The term ________ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product personalization.

Accepted Answer

A)   assembly-line production
B)   product standardization
C)   mass customization
D)   Six Sigma production C

Question 10

Decentralization of production is appropriate when the product does not serve universal needs.

Accepted Answer

A) True 
 B)False  True

Question 11

________ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Accepted Answer

A)   Distribution
B)   Transportation
C)   Sourcing
D)   Logistics

Question 12

Six Sigma is a qualitative alternative to total quality management that focuses primarily on managing human resources to improve profitability.

Accepted Answer

A) True 
 B)False

Question 13

What is a drawback of a just-in-time system?

Accepted Answer

A)   Transport costs are high when using a just-in-time system.
B)   It leaves a firm without a buffer stock of inventory.
C)   It increases the warranty costs associated with products.
D)   It leaves a firm with high scrap costs associated with defective products.

Question 14

________ refers to shared decision-making opportunities and operational collaboration of key global supply chain activities.

Accepted Answer

A)   Global supply chain coordination
B)   Make-or-buy decision
C)   Reverse logistics
D)   Global sourcing

Question 15

Make-or-buy decisions are decisions that concern the components to be used in a production process.

Accepted Answer

A) True 
 B)False  False

Question 16

Define the term logistics. Compare and contrast production and logistics.

Accepted Answer

Logistics is the activity that controls ...

Question 17

Logistics is the activity that controls the

Accepted Answer

A)   effective flows of physical materials through the value chain.
B)   customer contact points of a business.
C)   activities involved in creating a product.
D)   information flows between a business and its customers.

Question 18

Explain how fixed costs impact the decision to where to locate a plant.

Accepted Answer

In some cases, the fixed costs of settin...

Question 19

Cost and ________ are the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.

Accepted Answer

A)   production capacity
B)   assurance of continual supply
C)   quality control
D)   control

Question 20

Logistics includes the buying of raw materials and component parts.

Accepted Answer

A) True 
 B)False

Exam 17: Global Production and Supply Chain Management

According to the concept of economies of scale, as plant output expands

Correct AnswerverifiedShow Answer

Just-in-time systems reduce product quality although it brings about huge cost savings.

Correct AnswerverifiedShow Answer

Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm's manufacturing processes and products be certified under a quality standard known as

Correct AnswerverifiedShow Answer

________ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

Correct AnswerverifiedShow Answer

An advantage of buying component parts, or even an entire product, from independent suppliers is that

Correct AnswerverifiedShow Answer

How do product factors affect the decision of where to locate production? Where will you locate your firm's production plant if your firm produces refined sugar?

Correct AnswerverifiedThere are two product factors that affec...View AnswerShow Answer

Discuss the strategic objectives of the production and logistics functions of an international firm.

Correct AnswerverifiedThe production and logistics functions o...View AnswerShow Answer

RSA is a bicycle manufacturing company. Which of the following is a make-or-buy decision that the company will have to make?

Correct AnswerverifiedShow Answer

The term ________ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product personalization.

Correct AnswerverifiedC

Decentralization of production is appropriate when the product does not serve universal needs.

Correct AnswerverifiedTrue

________ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Correct AnswerverifiedShow Answer

Six Sigma is a qualitative alternative to total quality management that focuses primarily on managing human resources to improve profitability.

Correct AnswerverifiedShow Answer

What is a drawback of a just-in-time system?

Correct AnswerverifiedShow Answer

________ refers to shared decision-making opportunities and operational collaboration of key global supply chain activities.

Correct AnswerverifiedShow Answer

Make-or-buy decisions are decisions that concern the components to be used in a production process.

Correct AnswerverifiedFalse

Define the term logistics. Compare and contrast production and logistics.

Correct AnswerverifiedLogistics is the activity that controls ...View AnswerShow Answer

Logistics is the activity that controls the

Correct AnswerverifiedShow Answer

Explain how fixed costs impact the decision to where to locate a plant.

Correct AnswerverifiedIn some cases, the fixed costs of settin...View AnswerShow Answer

Cost and ________ are the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.

Correct AnswerverifiedShow Answer

Logistics includes the buying of raw materials and component parts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are two product factors that affec...
View Answer

Correct Answer
verified
The production and logistics functions o...
View Answer

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified
Logistics is the activity that controls ...
View Answer

Correct Answer
verified

Correct Answer
verified
In some cases, the fixed costs of settin...
View Answer

Correct Answer
verified

Correct Answer
verified