Question 1

What is logistics? Discuss the relationship between production and logistics.

Accepted Answer

Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution. Production and logistics are closely linked since a firm's ability to perform its production activities efficiently depends on a timely supply of high-quality material inputs, for which logistics is responsible.

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in international purchasing activities as part of the firm's overall supply chain management strategy?

Accepted Answer

A)  Level I 
B)  Level II 
C)  Level III 
D)  Level IV 
A)  Level I 
B)  Level II 
C)  Level III 
D)  Level IV C

Question 4

Explain make-or-buy decisions with an example.

Accepted Answer

International businesses frequently face

Question 5

_____ is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Accepted Answer

A)  Decentralized production 
B)  Just in time (JIT) 
C)  Concentration of production 
D)  Total quality management (TQM) 
A)  Decentralized production 
B)  Just in time (JIT) 
C)  Concentration of production 
D)  Total quality management (TQM)

Question 6

A multinational corporation uses both its own employees from inside the firm and an external supplier to perform certain tasks, often in concert with each other.

Accepted Answer

A)  Insourcing 
B)  Offshore outsourcing 
C)  Nearshoring 
D)  Co-sourcing 
A)  Insourcing 
B)  Offshore outsourcing 
C)  Nearshoring 
D)  Co-sourcing

Question 7

Deming, the proponent of total quality management, argued that:

Accepted Answer

A)  work standards should be defined only as quotas and numbers. 
B)  supervision is not essential for quality improvements. 
C)  management should train employees in new skills. 
D)  products should be certified with standards such as ISO 9000. 
A)  work standards should be defined only as quotas and numbers. 
B)  supervision is not essential for quality improvements. 
C)  management should train employees in new skills. 
D)  products should be certified with standards such as ISO 9000.

Question 8

Discuss the effect of country factors on the decision of where to locate production?

Accepted Answer

All other things being equal, a firm sho

Question 9

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. 
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 10

The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

Accepted Answer

A)  Transportation 
B)  Distribution 
C)  Reverse logistics 
D)  Global sourcing 
A)  Transportation 
B)  Distribution 
C)  Reverse logistics 
D)  Global sourcing

Question 11

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

Question 12

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. 
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 13

Modern consumer products such as personal computers serve universal needs.

Accepted Answer

A) True 
 B)False

Question 14

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products:

Accepted Answer

A)  cannot travel through a global supply chain. 
B)  have low value-to-weight ratios. 
C)  come from offshore factories. 
D)  have high value-to-weight ratios. 
A)  cannot travel through a global supply chain. 
B)  have low value-to-weight ratios. 
C)  come from offshore factories. 
D)  have high value-to-weight ratios.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

Accepted Answer

A) True 
 B)False

Question 17

_____ can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.

Accepted Answer

A)  Global supply chain management 
B)  Global inventory management 
C)  Global corporate management 
D)  Global sourcing arrangements 
A)  Global supply chain management 
B)  Global inventory management 
C)  Global corporate management 
D)  Global sourcing arrangements

Question 18

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

Accepted Answer

In some cases the fixed costs of setting

Question 19

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

Question 20

_____ implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a cost penalty.

Accepted Answer

A)  Assembly-line production 
B)  Mass customization 
C)  Six Sigma production 
D)  Product standardization 
A)  Assembly-line production 
B)  Mass customization 
C)  Six Sigma production 
D)  Product standardization

What is logistics? Discuss the relationship between production and logistics.

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

There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in international purchasing activities as part of the firm's overall supply chain management strategy?

Explain make-or-buy decisions with an example.

_____ is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

A multinational corporation uses both its own employees from inside the firm and an external supplier to perform certain tasks, often in concert with each other.

Deming, the proponent of total quality management, argued that:

Discuss the effect of country factors on the decision of where to locate production?

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

The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

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

Just-in-time inventory systems:

Modern consumer products such as personal computers serve universal needs.

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products:

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

Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

_____ can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.

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

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

_____ implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a cost penalty.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 17: Global Production and Supply Chain Management

What is logistics? Discuss the relationship between production and logistics.

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

There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in international purchasing activities as part of the firm's overall supply chain management strategy?

Explain make-or-buy decisions with an example.

_____ is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

A multinational corporation uses both its own employees from inside the firm and an external supplier to perform certain tasks, often in concert with each other.

Deming, the proponent of total quality management, argued that:

Discuss the effect of country factors on the decision of where to locate production?

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

The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

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

Just-in-time inventory systems:

Modern consumer products such as personal computers serve universal needs.

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products:

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

Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

_____ can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.

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

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

_____ implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a cost penalty.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters