Question 1

Backward vertical integration refers to:

Accepted Answer

A)   the purchase of competitive firms.
B)   the installation of production facilities to produce inputs for the production of final products.
C)   the placing of minorities in charge of production processes.
D)   the installation of production facilities to consume the outputs of the production system.

Question 2

While indirect production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are part of finished goods-termed indirect procurement-is also critical.

Accepted Answer

A) True 
 B)False

Question 3

Commonly, in designing plants for developing countries, engineers will use a hybrid of capital-intensive processes when they are considered essential to ensure product quality and labor-intensive processes to take advantage of the abundance of skilled labor.

Accepted Answer

A) True 
 B)False

Question 4

According to the text, outsourcing is hiring others to do noncore activities.

Accepted Answer

A) True 
 B)False

Question 5

Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory.

Accepted Answer

A) True 
 B)False

Question 6

Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as:

Accepted Answer

A)   value chains.
B)   supply chains.
C)   organization design.
D)   operations management.
E)   none of the above.

Question 7

According to the text:

Accepted Answer

A)   design is an important factor in the structure of a company's global supply chain.
B)   design determines the extent to which a company's strategy will be standardized across nations.
C)   common approaches to design are concurrent engineering and "over the top."
D)   all of the above.
E)   two of A, B, and C.

Question 8

The following arrangement can provide a firm with foreign products:

Accepted Answer

A)   overseas joint venture.
B)   overseas independent contractor.
C)   foreign sales office.
D)   two of the above.
E)   all of A, B, and C.

Question 9

Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.

Accepted Answer

A) True 
 B)False

Question 10

An important consideration in design is the extent to which the international company's products and services will be standardized across nations or regions.

Accepted Answer

A) True 
 B)False

Question 11

The production organization in an overseas subsidiary is commonly a scaled-down version of that found in the parent company.

Accepted Answer

A) True 
 B)False

Question 12

The approach to design that promotes cross-functional participation in the design stage:

Accepted Answer

A)   helps to identify many of the potential sourcing, manufacturing, and other difficulties associated with a particular design.
B)   may involve customers in the design process.
C)   has been called concurrent engineering.
D)   all of the above.
E)   two of A, B, and C.

Question 13

To avoid an increase in price because the U.S. dollar has lost value versus the euro, an American importer should require European exporters to quote their products in euros.

Accepted Answer

A) True 
 B)False

Question 14

According to the text, which of the following is true?

Accepted Answer

A)   Zara's competitive advantage comes from its stylish fashion design.
B)   Zara's supply chain management processes are combined with a strategy of limited availability of its merchandise.
C)   Two of A, B, and D
D)   Both B and D are correct, so C is the appropriate answer.
E)  All of A, B, and D.

Question 15

The traditional functions of purchasing, such as supplier determination, analysis, and selection, have to be accomplished before the actual purchasing via e-procurement.

Accepted Answer

A) True 
 B)False

Question 16

Mass customization:

Accepted Answer

A)   is enhanced by a company's use of computer-aided manufacturing systems to produce and deliver products and services in a batch size of one.
B)   is usually appropriate in situations where there is the potential for differentiating a product for a particular customer.
C)   typically requires the company to reconceptualize the design of its products as well as the design and integration of the processes used for producing and delivering the product to customers.
D)   all of the above
E)   two of A, B, and C

Question 17

Managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods are referred to as:

Accepted Answer

A)   standards.
B)   processes.
C)   logistics.
D)   value chains.
E)   none of the above.

Question 18

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "business-cycle costing" to analyze purchasing decisions.

Accepted Answer

A) True 
 B)False

Question 19

Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.

Accepted Answer

A) True 
 B)False

Question 20

According to the text, a concurrent engineering approach to design promotes cross-functional participation in the design process and thereby helps to identify and avoid many of the potential sourcing, manufacturing, and other difficulties that can be associated with a particular design.

Accepted Answer

A) True 
 B)False

Exam 16: Global Operations and Supply Chain Management

According to the text, outsourcing is hiring others to do noncore activities.

Correct AnswerverifiedShow Answer

Managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods are referred to as:

Correct AnswerverifiedShow Answer

Backward vertical integration refers to:

Correct AnswerverifiedShow Answer

An important consideration in design is the extent to which the international company's products and services will be standardized across nations or regions.

Correct AnswerverifiedShow Answer

While indirect production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are part of finished goods-termed indirect procurement-is also critical.

Correct AnswerverifiedShow Answer

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "business-cycle costing" to analyze purchasing decisions.

Correct AnswerverifiedShow Answer

According to the text, which of the following is true?

Correct AnswerverifiedShow Answer

The following arrangement can provide a firm with foreign products:

Correct AnswerverifiedShow Answer

Mass customization:

Correct AnswerverifiedShow Answer

To avoid an increase in price because the U.S. dollar has lost value versus the euro, an American importer should require European exporters to quote their products in euros.

Correct AnswerverifiedShow Answer

The production organization in an overseas subsidiary is commonly a scaled-down version of that found in the parent company.

Correct AnswerverifiedShow Answer

Commonly, in designing plants for developing countries, engineers will use a hybrid of capital-intensive processes when they are considered essential to ensure product quality and labor-intensive processes to take advantage of the abundance of skilled labor.

Correct AnswerverifiedShow Answer

The approach to design that promotes cross-functional participation in the design stage:

Correct AnswerverifiedShow Answer

Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory.

Correct AnswerverifiedShow Answer

The traditional functions of purchasing, such as supplier determination, analysis, and selection, have to be accomplished before the actual purchasing via e-procurement.

Correct AnswerverifiedShow Answer

Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.

Correct AnswerverifiedShow Answer

Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.

Correct AnswerverifiedShow Answer

Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as:

Correct AnswerverifiedShow Answer

According to the text:

Correct AnswerverifiedShow Answer

According to the text, a concurrent engineering approach to design promotes cross-functional participation in the design process and thereby helps to identify and avoid many of the potential sourcing, manufacturing, and other difficulties that can be associated with a particular design.

Correct AnswerverifiedShow Answer

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