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A) With lesser utilization of capital equipment,the chances of a firm realizing economies of scale increases.
B) A plant must avoid operating at the minimum efficient scale of output to realize all major plant-level scale economies.
C) When the minimum efficient scale of production is very low relative to global demand,it will be economical to manufacture a product at a single location.
D) An advantage of a low minimum efficient scale is that it allows the firm to accommodate demands for local responsiveness.
E) A low minimum efficient scale increases the risk of potentially adverse fluctuations in exchange rates.
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A) electronic data interchange system
B) data warehousing system
C) batch processing system
D) skills inventory system
E) just-in-time inventory system
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A) A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high.
B) Performing a manufacturing activity in several locations makes it difficult for a firm to accommodate demands for local responsiveness.
C) Producing in multiple locations reduces the bargaining power of a firm against manufacturers.
D) The larger the minimum efficient scale of a plant relative to total global demand,the greater the need for decentralizing production to multiple locations.
E) Many firms disperse their manufacturing plants to different locations as a "real hedge" against potentially adverse moves in currencies.
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A) a shift in focus away from quality.
B) increasing productivity of workers.
C) speeding up inventory turnover.
D) creating a buffer stock of inventory.
E) writing off excess unsold inventory against earnings.
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A) product's ability to serve universal needs
B) product's life cycle
C) product's packaging
D) product's flexible manufacturing technology
E) product's value-to-weight ratio
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A) amount of working capital for inventory
B) inventory turnover
C) number of defective parts
D) inventory holding costs
E) storage costs
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A) It fails to adapt to the production of different products.
B) It generally results in stockpiles of partly finished products.
C) It improves capacity utilization and reduces wastes.
D) It increases setup time for complex equipment.
E) It adds to the cost structure of a firm.
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A) increases the total capital required by a firm.
B) leaves a firm without a buffer stock of inventory.
C) increases inventory holding costs,such as warehousing and storage costs.
D) is less efficient than traditional system in spotting and fixing defective inputs.
E) lowers a company's profitability as measured by return on capital invested.
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A) A company is more likely to have excess unsold inventory that it has to write off against earnings.
B) Parts enter the manufacturing process immediately; they are not warehoused.
C) It is difficult to spot and fix defective inputs.
D) The amount of working capital a company needs to finance inventory increases.
E) A firm has ample buffer stock of inventory.
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A) Quality of supervision should be improved by allowing more time for supervisors to work with employees.
B) Management should embrace the philosophy that mistakes are often acceptable.
C) Work standards should be defined only as numbers or quotas.
D) Achieving better quality requires commitment more at the top management than at any other level.
E) Management should create an environment in which employees will follow recommendations rather than recommend changes.
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