Question 1

The typical ________ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.

Accepted Answer

A)  minimum efficient scale 
B)  flexible machine cell 
C)  just-in-time machine 
D)  assembly line

Question 2

Describe the major arguments put forth by Edward Deming.

Accepted Answer

The answer of Describe the major arguments put forth by...

Question 3

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.

Question 4

Mass customization facilitates product customization at low costs.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Other things being equal, a firm should locate its various manufacturing activities where the relative factor costs are conducive to the performance of those activities.

Accepted Answer

A) True 
 B)False

Question 8

The level of output at which most plant-level scale economies are exhausted is referred to as the

Accepted Answer

A)  minimum efficient scale of output. 
B)  downstream supply chain. 
C)  flexible machine. 
D)  upstream supply chain.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of the country factors that govern international business?

Accepted Answer

A)  Relative factor costs should be considered when selecting a country for production. 
B)  Centralized production is the most suitable method of doing international business. 
C)  Exchange rates are not a significant factor that determines the selection of a country. 
D)  Decentralized manufacturing is the most suitable method of doing international business.

Question 11

Which of the following situations would lead a firm to choose to decentralize production?

Accepted Answer

A)  The product serves universal needs. 
B)  The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists. 
C)  Trade barriers are low. 
D)  The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Managers in a source factory operate in essentially the same way that managers in an offshore factory operate. They have very little say in purchasing or logistics decisions.

Accepted Answer

A) True 
 B)False

Question 14

How does the type of technology a firm uses affect its decision of where to locate production?

Accepted Answer

The answer of How does the type of technology a...

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.

Question 16

The Six Sigma methodology

Accepted Answer

A)  is used to compare and benchmark the performances of competing firms. 
B)  gives more importance to productivity than product quality. 
C)  is a direct descendant of the total quality management philosophy. 
D)  says that at six sigmas, there would be only 3.4 defects per million units.

Question 17

Concentration of production is appropriate when

Accepted Answer

A)  the product serves universal needs. 
B)  the product does not serve universal needs. 
C)  the product's value-to-weight ratio is low. 
D)  volatility in important exchange rates is expected.

Question 18

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the "perform" group?

Accepted Answer

A)  the package's ability to preserve the products to maintain their freshness or newness 
B)  the package's ability to provide the necessary security and safety to ensure that the products reach their end destination in their intended shape 
C)  the package's ability to contain the products properly 
D)  the ability of the product in the package to handle being transported between nodes in the global supply chain

Question 19

Identify an advantage of adopting a low minimum efficient scale.

Accepted Answer

A)  It helps companies reduce the level of initial capital required for business. 
B)  It allows the firm to accommodate demands for local responsiveness. 
C)  It allows firms to discount political risks and other global capital risks. 
D)  A minimum efficient scale of a plant allows decentralization of production.

Question 20

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

Accepted Answer

A)  Cloud-based EDI systems are more expensive than proprietary solutions. 
B)  Small firms will not be able to make use of cloud-based EDI systems. 
C)  Cloud-based systems are much easier to install compared to proprietary solutions. 
D)  Most cloud-based systems are implemented to support proprietary solutions.

Exam 17: Global Production and Supply Chain Management

The typical ________ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.

Describe the major arguments put forth by Edward Deming.

Just-in-time inventory systems

Mass customization facilitates product customization at low costs.

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

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

Other things being equal, a firm should locate its various manufacturing activities where the relative factor costs are conducive to the performance of those activities.

The level of output at which most plant-level scale economies are exhausted is referred to as the

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

Which of the following statements is true of the country factors that govern international business?

Which of the following situations would lead a firm to choose to decentralize production?

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

Managers in a source factory operate in essentially the same way that managers in an offshore factory operate. They have very little say in purchasing or logistics decisions.

How does the type of technology a firm uses affect its decision of where to locate production?

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

The Six Sigma methodology

Concentration of production is appropriate when

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the "perform" group?

Identify an advantage of adopting a low minimum efficient scale.

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