Question 1

Which of the following statements is true of the country factors that govern international business?

Accepted Answer

A)   Relative factor costs should be considered when selecting a country for production.
B)   Centralized production is the most suitable method of doing international business.
C)   Exchange rates are not a significant factor that determines the selection of a country.
D)   Decentralized manufacturing is the most suitable method of doing international business.

Question 2

Which of the following statements is true of cloud-based EDI systems?

Accepted Answer

A)   Cloud-based EDI systems are more expensive than proprietary solutions.
B)   Small firms will not be able to make use of cloud-based EDI systems.
C)   Cloud-based systems are much easier to install compared to proprietary solutions.
D)   Most cloud-based systems are implemented to support proprietary solutions.

Question 3

Managers in a source factory operate in essentially the same way that managers in an offshore factory operate. They have very little say in purchasing or logistics decisions.

Accepted Answer

A) True 
 B)False

Question 4

The typical ________ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.

Accepted Answer

A)   minimum efficient scale
B)   flexible machine cell
C)   just-in-time machine
D)   assembly line

Question 5

One way to reduce risks associated with a JIT global supply chain is to source inputs from several suppliers located in different countries.

Accepted Answer

A) True 
 B)False

Question 6

Products such as electronic components and pharmaceuticals have low value-to-weight ratios.

Accepted Answer

A) True 
 B)False

Question 7

The Six Sigma methodology

Accepted Answer

A)   is used to compare and benchmark the performances of competing firms.
B)   gives more importance to productivity than product quality.
C)   is a direct descendant of the total quality management philosophy.
D)   says that at six sigmas, there would be only 3.4 defects per million units.

Question 8

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1)  perform, (2)  protect, and (3)  inform. Which of the following is one of the functions of the "perform" group?

Accepted Answer

A)   the package's ability to preserve the products to maintain their freshness or newness
B)   the package's ability to provide the necessary security and safety to ensure that the products reach their end destination in their intended shape
C)   the package's ability to contain the products properly
D)   the ability of the product in the package to handle being transported between nodes in the global supply chain

Question 9

Describe the major arguments put forth by Edward Deming.

Accepted Answer

Deming identified a number of steps that...

Question 10

Mass customization facilitates product customization at low costs.

Accepted Answer

A) True 
 B)False

Question 11

Identify an advantage of adopting a low minimum efficient scale.

Accepted Answer

A)   It helps companies reduce the level of initial capital required for business.
B)   It allows the firm to accommodate demands for local responsiveness.
C)   It allows firms to discount political risks and other global capital risks.
D)   A minimum efficient scale of a plant allows decentralization of production.

Question 12

Concentration of production is appropriate when

Accepted Answer

A)   the product serves universal needs.
B)   the product does not serve universal needs.
C)   the product's value-to-weight ratio is low.
D)   volatility in important exchange rates is expected.

Question 13

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

Accepted Answer

A)   minimum efficient scale of output.
B)   downstream supply chain.
C)   flexible machine.
D)   upstream supply chain.

Question 14

Which of the following situations would lead a firm to choose to decentralize production?

Accepted Answer

A)   The product serves universal needs.
B)   The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists.
C)   Trade barriers are low.
D)   The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.

Question 15

Global learning refers to the idea that valuable knowledge does not reside just in a firm's domestic operations.

Accepted Answer

A) True 
 B)False

Question 16

Firms would prefer buying component parts, or an entire product, from independent suppliers to protect proprietary product technologies.

Accepted Answer

A) True 
 B)False

Question 17

Just-in-time inventory systems

Accepted Answer

A)   are used when procurement is not organized.
B)   require large warehouses for storage.
C)   economize on inventory holding costs.
D)   maintain large buffer for inventory.

Question 18

An advantage of engaging in in-house production of products and components is that

Accepted Answer

A)   the firm will have fewer subunits to control by making products in-house.
B)   it will help the firm capture more orders from other countries.
C)   it enables a firm to protect the proprietary technologies that it has.
D)   firms can make better use of the location advantages of certain countries.

Question 19

How does the type of technology a firm uses affect its decision of where to locate production?

Accepted Answer

The type of technology a firm uses to pe...

Question 20

Other things being equal, a firm should locate its various manufacturing activities where the relative factor costs are conducive to the performance of those activities.

Accepted Answer

A) True 
 B)False

Exam 17: Global Production and Supply Chain Management

Products such as electronic components and pharmaceuticals have low value-to-weight ratios.

Correct AnswerverifiedShow Answer

The typical ________ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.

Correct AnswerverifiedShow Answer

An advantage of engaging in in-house production of products and components is that

Correct AnswerverifiedShow Answer

The Six Sigma methodology

Correct AnswerverifiedShow Answer

Firms would prefer buying component parts, or an entire product, from independent suppliers to protect proprietary product technologies.

Correct AnswerverifiedShow Answer

Managers in a source factory operate in essentially the same way that managers in an offshore factory operate. They have very little say in purchasing or logistics decisions.

Correct AnswerverifiedShow Answer

Identify an advantage of adopting a low minimum efficient scale.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Other things being equal, a firm should locate its various manufacturing activities where the relative factor costs are conducive to the performance of those activities.

Correct AnswerverifiedShow Answer

Which of the following situations would lead a firm to choose to decentralize production?

Correct AnswerverifiedShow Answer

Mass customization facilitates product customization at low costs.

Correct AnswerverifiedShow Answer

Which of the following statements is true of cloud-based EDI systems?

Correct AnswerverifiedShow Answer

Describe the major arguments put forth by Edward Deming.

Correct AnswerverifiedDeming identified a number of steps that...View AnswerShow Answer

Global learning refers to the idea that valuable knowledge does not reside just in a firm's domestic operations.

Correct AnswerverifiedShow Answer

Which of the following statements is true of the country factors that govern international business?

Correct AnswerverifiedShow Answer

Concentration of production is appropriate when

Correct AnswerverifiedShow Answer

How does the type of technology a firm uses affect its decision of where to locate production?

Correct AnswerverifiedThe type of technology a firm uses to pe...View AnswerShow Answer

One way to reduce risks associated with a JIT global supply chain is to source inputs from several suppliers located in different countries.

Correct AnswerverifiedShow Answer

Just-in-time inventory systems

Correct AnswerverifiedShow Answer

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the "perform" group?

Correct AnswerverifiedShow Answer

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Deming identified a number of steps that...
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The type of technology a firm uses to pe...
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