Exam 17: Global Production, Outsourcing, and Logistics

Discuss the role of information technology and the Internet in materials management.

Which of the following statements is true of Six Sigma?

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

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

Use of technologies such as just-in-time inventory systems and computer-aided design has reduced pressures for firms to establish long-term relationships with their suppliers.

Lean production covers a range of manufacturing technologies designed to reduce setup times for complex equipment.

A production process would create just 1 defect per six thousand products at Six Sigma.

Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.

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

Make-or-buy decisions are decisions about _____.

Which of the following is a factor that transforms a low-cost location to a high-cost location?

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

Logistics is the activity that controls the _____.

Making all or part of a product in-house is beneficial when the firm intends to build valuable capabilities over time.

What is mass customization?

Describe global learning with reference to foreign subsidiaries of a firm.

Which of the following makes being dependent on one location particularly risky?

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

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