Question 1

Logistics is the activity that controls the _____.

Accepted Answer

A)  transmission of physical materials through the value chain 
B)  customer contact points of a business 
C)  activities involved in creating a product 
D)  information exchange between a business and its customers 
A)  transmission of physical materials through the value chain 
B)  customer contact points of a business 
C)  activities involved in creating a product 
D)  information exchange between a business and its customers

Question 2

At Six Sigma,a production process would be highly accurate and create just _____.

Accepted Answer

A)  3.4 defects per hundred thousand units 
B)  6.8 defects per million units 
C)  3.4 defects per million units 
D)  6.8 defects per hundred thousand units 
A)  3.4 defects per hundred thousand units 
B)  6.8 defects per million units 
C)  3.4 defects per million units 
D)  6.8 defects per hundred thousand units

Question 3

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Accepted Answer

The JIT system was developed by Japanese

Question 4

Strategic alliances build trust between the firm and its suppliers.

Accepted Answer

A) True 
 B)False

Question 5

With a(n)_____ system,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

Accepted Answer

A)  CAD 
B)  JIT 
C)  CAM 
D)  EDI 
A)  CAD 
B)  JIT 
C)  CAM 
D)  EDI

Question 6

The major cost saving associated with JIT systems comes from _____.

Accepted Answer

A)  early delivery of raw materials to production 
B)  decentralization of manufacturing 
C)  speeding up inventory turnover 
D)  reduced spending on CRM activities 
A)  early delivery of raw materials to production 
B)  decentralization of manufacturing 
C)  speeding up inventory turnover 
D)  reduced spending on CRM activities

Question 7

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

Accepted Answer

A)  Should the company increase its responsiveness toward the retailers? 
B)  What are the products that the company should manufacture? 
C)  Should the company outsource production to a low-cost vendor? 
D)  What should be the pricing strategy of the company's product? 
A)  Should the company increase its responsiveness toward the retailers? 
B)  What are the products that the company should manufacture? 
C)  Should the company outsource production to a low-cost vendor? 
D)  What should be the pricing strategy of the company's product?

Question 8

When a company's product has a low value-to-weight ratio,the company should _____.

Accepted Answer

A)  produce the product from two or three optimal locations and ship products from there 
B)  manufacture products from a centralized location 
C)  ignore transportation costs as they would only be a minor part 
D)  produce the product in multiple locations close to major markets 
A)  produce the product from two or three optimal locations and ship products from there 
B)  manufacture products from a centralized location 
C)  ignore transportation costs as they would only be a minor part 
D)  produce the product in multiple locations close to major markets

Question 9

When does concentration of production make sense?

Accepted Answer

There are several situations when concen

Question 10

Decentralization of production is appropriate when _____.

Accepted Answer

A)  a product's value-to-weight ratio is high 
B)  the product serves universal needs 
C)  barriers to trade are low 
D)  volatility in key exchange rates is expected 
A)  a product's value-to-weight ratio is high 
B)  the product serves universal needs 
C)  barriers to trade are low 
D)  volatility in key exchange rates is expected

Question 11

Lowering the costs is one of the objectives of the production and logistics function of an international firm.

Accepted Answer

A) True 
 B)False

Question 12

How do flexible machine cells work? What is the advantage of incorporating this type of technology into a strategy?

Accepted Answer

Flexible machine cells are a common flex

Question 13

How has the adoption of just-in-time inventory systems,computer-aided design,and computer-aided manufacturing impact firms' associations with suppliers?

Accepted Answer

A)  The bargaining power of the firms over their suppliers has increased enormously. 
B)  It has reduced the level of data sharing between firms and their suppliers. 
C)  Firms are capable of switching suppliers often due to such technologies. 
D)  It has increased pressures to establish long-term relationships with suppliers. 
A)  The bargaining power of the firms over their suppliers has increased enormously. 
B)  It has reduced the level of data sharing between firms and their suppliers. 
C)  Firms are capable of switching suppliers often due to such technologies. 
D)  It has increased pressures to establish long-term relationships with suppliers.

Question 14

Which of the following is a drawback of a just-in-time system?

Accepted Answer

A)  Transport costs are high when using a just-in-time system. 
B)  It leaves a firm without a buffer stock of inventory. 
C)  It increases the warranty costs associated with products. 
D)  It leaves a firm with high scrap costs associated with defective products. 
A)  Transport costs are high when using a just-in-time system. 
B)  It leaves a firm without a buffer stock of inventory. 
C)  It increases the warranty costs associated with products. 
D)  It leaves a firm with high scrap costs associated with defective products.

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Explain specialized assets with an example.

Accepted Answer

A specialized asset is an asset whose va

Question 19

Just-in-time systems help a firm respond quickly to increases in demand.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Logistics is the activity that controls the _____.

At Six Sigma,a production process would be highly accurate and create just _____.

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Strategic alliances build trust between the firm and its suppliers.

With a(n)_____ system,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

The major cost saving associated with JIT systems comes from _____.

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

When a company's product has a low value-to-weight ratio,the company should _____.

When does concentration of production make sense?

Decentralization of production is appropriate when _____.

Lowering the costs is one of the objectives of the production and logistics function of an international firm.

How do flexible machine cells work? What is the advantage of incorporating this type of technology into a strategy?

How has the adoption of just-in-time inventory systems,computer-aided design,and computer-aided manufacturing impact firms' associations with suppliers?

Which of the following is a drawback of a just-in-time system?

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

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

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

Explain specialized assets with an example.

Just-in-time systems help a firm respond quickly to increases in demand.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Logistics is the activity that controls the _____.

At Six Sigma,a production process would be highly accurate and create just _____.

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Strategic alliances build trust between the firm and its suppliers.

With a(n)_____ system,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

The major cost saving associated with JIT systems comes from _____.

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

When a company's product has a low value-to-weight ratio,the company should _____.

When does concentration of production make sense?

Decentralization of production is appropriate when _____.

Lowering the costs is one of the objectives of the production and logistics function of an international firm.

How do flexible machine cells work? What is the advantage of incorporating this type of technology into a strategy?

How has the adoption of just-in-time inventory systems,computer-aided design,and computer-aided manufacturing impact firms' associations with suppliers?

Which of the following is a drawback of a just-in-time system?

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

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

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

Explain specialized assets with an example.

Just-in-time systems help a firm respond quickly to increases in demand.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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