Exam 17: Global Production and Supply Chain Management

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

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.

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

Logistics is the activity that controls the

________ 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. 

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

Logistics includes the buying of raw materials and component parts.

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

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

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

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

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

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

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

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

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?

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

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

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

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