Question 1

Producing a standardized product in large volumes will:

Accepted Answer

A)   result in diseconomies of scale.
B)   increase production efficiency.
C)   increase production costs.
D)   result in shorter production runs.
E)   result in a high minimum efficient scale of output.F) A) and B)
G) A) and C)

Question 2

The Maroon Apparel company controls the weaving,dyeing,cutting,and sewing of its merchandise.Apart from these activities,it also manufactures buttons,zips,buckles,and other accessories for its apparel.This is done in order to exercise tight control over its manufacturing processes and to reduce production costs.This strategy of the company is known as _____.

Accepted Answer

A)   vertical integration
B)   unrelated diversification
C)   horizontal integration
D)   mass customization
E)   conglomerate diversificationF) C) and D)
G) A) and C)

Question 3

Two product factors impact location decisions.They are the product's value-to-weight ratio and:

Accepted Answer

A)   whether the product serves universal needs.
B)   the product's life cycle.
C)   the product's packaging.
D)   the availability of flexible manufacturing technology.
E)   whether the product is produced using environmental friendly methods.F) A) and B)
G) C) and D)

Question 4

The principal tool that most managers now use to increase the reliability of their product offering is _____,a statistically based methodology for improving product quality.It is a direct descendant of the total quality management philosophy.

Accepted Answer

A)   Six Sigma
B)   lean manufacturing
C)   just-in-time inventory
D)   ISO 9000
E)   mass customizationF) A) and B)
G) D) and E)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following location externalities is favorable for foreign direct investment in a country?

Accepted Answer

A)   Presence of supporting industries
B)   Market saturated with other foreign competitors
C)   Lack of intellectual property rights laws
D)   Presence of a communist political system
E)   Adverse changes in currency exchange ratesF) All of the above
G) A) and D)

Question 7

Which of the following is a consequence of adverse changes in exchange rates?

Accepted Answer

A)   It brings more foreign direct investment into the country.
B)   It decreases the dollar cost of products exported from the country.
C)   It alters a country's attractiveness as a manufacturing base.
D)   It transforms the country into a low-cost location.
E)   It decreases the amount of imports brought into the country.F) B) and D)
G) All of the above

Question 8

Uniway Technologies Inc.has based its manufacturing units in the country of Lanthania.The country's stable economic and political environment has helped the firm gain competitive advantage by lowering its production costs and improving product quality.Other things being equal,the benefits realized from such a strategy can be typically referred to as _____.

Accepted Answer

A)   economies of scope.
B)   location economies.
C)   diseconomies of scale.
D)   economies of power.
E)   learning economies.F) D) and E)
G) A) and C)

Question 9

Which of the following is a result of using electronic data interchange systems?

Accepted Answer

A)   It helps a firm decentralize materials management decisions to the plant level.
B)   It helps achieve longer productions runs in manufacturing units.
C)   It excludes customers from the system.
D)   It helps firms in reducing their inventory turnover.
E)   It delays the realization of economies of scale.F) C) and D)
G) A) and D)

Question 10

Which of the following refer(s) to skills of a corporation that become more valuable over time through learning?

Accepted Answer

A)   Global learning
B)   Accrued interests
C)   Dynamic capabilities
D)   Learning effects
E)   Universal needsF) D) and E)
G) B) and E)

Question 11

What is the role of information technology and the Internet in modern materials management?

Accepted Answer

Web-based information systems play a cru...

Question 12

A(n) _____ refers to an asset designed to perform a specific task,whose value is significantly reduced in its next-best use.

Accepted Answer

A)   fixed asset
B)   specialized asset
C)   intangible asset
D)   liquid asset
E)   deferred assetF) C) and E)
G) All of the above

Question 13

Which of the following is an advantage for a firm that buys component parts from independent suppliers?

Accepted Answer

A)   It makes planning, coordination, and scheduling of adjacent processes easier.
B)   It protects a firms proprietary production technology.
C)   It facilitates investments in highly specialized assets.
D)   It allows a firm to maintain its flexibility by switching orders between suppliers.
E)   It provides the opportunity to build dynamic capabilities in production activities.F) A) and B)
G) D) and E)

Question 14

Which of the following is a consequence of a low minimum efficient scale?

Accepted Answer

A)   It prevents a firm from utilizing capital equipment fully.
B)   It enhances the need to centralize production in a single location or a limited number of locations.
C)   It prevents a firm from accommodating demands for local responsiveness.
D)   It increases the unit cost of products.
E)   It allows a firm to hedge against currency risk by manufacturing the same product in several locations.F) B) and D)
G) C) and D)

Question 15

Which of the following is true of products with high value-to-weight ratios?

Accepted Answer

A)   They are expensive to transport.
B)   They tend to increase in weight after processing
C)   They tend to be restricted under trade barriers.
D)   They are expensive and do not weigh very much.
E)   They have a low inventory turnover.F) A) and B)
G) C) and E)

Question 16

Geminia System,manufacturer of car components,wants to set up a system that will help in sending invoices to its customers once orders for input supply are placed.Which of the following should the company use to perform this function?

Accepted Answer

A)   Computer-aided design system
B)   Lean production
C)   Just-in-time inventory system
D)   Electronic data interchange
E)   Social networkingF) B) and E)
G) A) and C)

Question 17

Which of the following is the initial reason for the establishment of a foreign production facility?

Accepted Answer

A)   Employee turnover is high.
B)   Product quality is low.
C)   Inventory turnover is low.
D)   Exchange rate fluctuations are high.
E)   Labor costs are low.F) B) and D)
G) B) and C)

Question 18

Champion Works Inc.is an animation company,headquartered in the U.S.The CEO of the company has decided to outsource some of the production to companies in developing countries,as the firm seems to be losing out on its competitive advantage.This decision to shift functions or processes to less developed countries is due to their:

Accepted Answer

A)   strong intellectual property rights laws.
B)   lower labor costs.
C)   accessibility to better technology.
D)   sophisticated infrastructure.
E)   currency appreciation.F) A) and D)
G) C) and E)

Question 19

The government of Lithaya placed a large order for buses with Blue Ace Inc.,a manufacturing company in Lodesia.In return,it asks the company to subcontract some work to Lithayan manufacturers.This is an example of a(n) _____ in international business.

Accepted Answer

A)   consortium agreement
B)   cartel arrangement
C)   offset agreement
D)   monopoly arrangement
E)   collective bargaining agreementF) All of the above
G) C) and D)

Question 20

Which of the following is a consequence of improved quality control?

Accepted Answer

A)   Greater warranty costs
B)   Higher scrap costs
C)   Direct reduction in unit costs
D)   Decreased productivity
E)   Reduced inventory turnoverF) C) and E)
G) All of the above

Exam 15: Global Production, Outsourcing, and Logistics

What is the role of information technology and the Internet in modern materials management?

Correct Answer
verified
Web-based information systems play a cru...
View Answer

A(n) _____ refers to an asset designed to perform a specific task,whose value is significantly reduced in its next-best use.

Correct Answer
verified

Which of the following is a consequence of improved quality control?

Correct Answer
verified

Which of the following is true of products with high value-to-weight ratios?

Correct Answer
verified

Correct Answer
verified

The government of Lithaya placed a large order for buses with Blue Ace Inc.,a manufacturing company in Lodesia.In return,it asks the company to subcontract some work to Lithayan manufacturers.This is an example of a(n) _____ in international business.

Correct Answer
verified

Which of the following is an advantage for a firm that buys component parts from independent suppliers?

Correct Answer
verified

Which of the following is a consequence of a low minimum efficient scale?

Correct Answer
verified

Correct Answer
verified

Which of the following location externalities is favorable for foreign direct investment in a country?

Correct Answer
verified

Producing a standardized product in large volumes will:

Correct Answer
verified

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

Correct Answer
verified

Two product factors impact location decisions.They are the product's value-to-weight ratio and:

Correct Answer
verified

The principal tool that most managers now use to increase the reliability of their product offering is _____,a statistically based methodology for improving product quality.It is a direct descendant of the total quality management philosophy.

Correct Answer
verified

Geminia System,manufacturer of car components,wants to set up a system that will help in sending invoices to its customers once orders for input supply are placed.Which of the following should the company use to perform this function?

Correct Answer
verified

Which of the following is the initial reason for the establishment of a foreign production facility?

Correct Answer
verified

Correct Answer
verified

Which of the following refer(s) to skills of a corporation that become more valuable over time through learning?

Correct Answer
verified

Which of the following is a result of using electronic data interchange systems?

Correct Answer
verified

Which of the following is a consequence of adverse changes in exchange rates?

Correct Answer
verified

Exam 15: Global Production, Outsourcing, and Logistics

What is the role of information technology and the Internet in modern materials management?

Correct AnswerverifiedWeb-based information systems play a cru...View AnswerShow Answer

A(n) _____ refers to an asset designed to perform a specific task,whose value is significantly reduced in its next-best use.

Correct AnswerverifiedShow Answer

Which of the following is a consequence of improved quality control?

Correct AnswerverifiedShow Answer

Which of the following is true of products with high value-to-weight ratios?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The government of Lithaya placed a large order for buses with Blue Ace Inc.,a manufacturing company in Lodesia.In return,it asks the company to subcontract some work to Lithayan manufacturers.This is an example of a(n) _____ in international business.

Correct AnswerverifiedShow Answer

Which of the following is an advantage for a firm that buys component parts from independent suppliers?

Correct AnswerverifiedShow Answer

Which of the following is a consequence of a low minimum efficient scale?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following location externalities is favorable for foreign direct investment in a country?

Correct AnswerverifiedShow Answer

Producing a standardized product in large volumes will:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Two product factors impact location decisions.They are the product's value-to-weight ratio and:

Correct AnswerverifiedShow Answer

The principal tool that most managers now use to increase the reliability of their product offering is _____,a statistically based methodology for improving product quality.It is a direct descendant of the total quality management philosophy.

Correct AnswerverifiedShow Answer

Geminia System,manufacturer of car components,wants to set up a system that will help in sending invoices to its customers once orders for input supply are placed.Which of the following should the company use to perform this function?

Correct AnswerverifiedShow Answer

Which of the following is the initial reason for the establishment of a foreign production facility?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following refer(s) to skills of a corporation that become more valuable over time through learning?

Correct AnswerverifiedShow Answer

Which of the following is a result of using electronic data interchange systems?

Correct AnswerverifiedShow Answer

Which of the following is a consequence of adverse changes in exchange rates?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Web-based information systems play a cru...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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