Question 1

_____ has caused proprietary software solutions to implement electronic data interchange systems become obsolete.

Accepted Answer

A)  A just-in-time inventory system
B)  Flexible machine technology
C)  The Internet
D)  Dynamic capabilities
E)  Social NetworkingF) C) and E)
G) C) and D)

Question 2

The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid,the Magnifier,is $87.50.The CFO of the company,Neha Patel,has determined that if the company expands the output of its biggest U.S.plant by 20 percent,the unit cost would be only $82.50.The concept that as plant output expands,unit costs decrease,is known as

Accepted Answer

A)  minimum efficient scale.
B)  lean production.
C)  Six Sigma.
D)  economies of scale.
E)  total quality management.F) A) and E)
G) B) and E)

Question 3

Which of the following is a philosophy that was widely adopted,first by Japanese companies and then American companies during the 1980s and early 1990s and from which the Six Sigma methodology directly descended?

Accepted Answer

A)  total quality management
B)  enterprise resource planning
C)  business process reengineering
D)  just-in-time
E)  business process outsourcingF) All of the above
G) A) and B)

Question 4

The level of output at which most plant-level scale economies are exhausted is known as

Accepted Answer

A)  mass customization.
B)  break-even point.
C)  minimum efficient scale.
D)  just-in-time.
E)  lean production.F) A) and D)
G) B) and D)

Question 5

Under a more traditional system as opposed to a just-in-time inventory system,warehousing parts for weeks before they are used will

Accepted Answer

A)  reduce the total working capital required by a firm.
B)  allow many defective parts to be produced before a problem is recognized.
C)  result in a near error-free production process.
D)  reduce the costs related to inventory holding.
E)  reduce the need to write off excess unsold inventory against earnings.F) A) and B)
G) All of the above

Question 6

In studying various European countries to identify the one where Rinker Audio Products can manufacture and use as the base for a pan-Europe launch,the company found out that the country of Marunia changed its foreign exchange rate that resulted in a significant appreciation of the Marun,its local currency.Which of the following is a consequence of Marunia's change in exchange rate that results in appreciation of the local currency?

Accepted Answer

A)  more foreign direct investment into Marunia
B)  decrease in the dollar cost of products exported from Marunia
C)  diminishing of Marunia's attractiveness as a manufacturing base
D)  transformation of Marunia into a low-cost location
E)  decrease in the amount of imports brought into MaruniaF) B) and C)
G) A) and C)

Question 7

What are the important strategic objectives of an international firm's production and logistics functions?

Accepted Answer

The production and logistics functions o...

Question 8

Define minimum efficient scale of output.How does this influence the location decisions of production activities?

Accepted Answer

The level of output at which most plant-...

Question 9

Flexible manufacturing technologies are specially targeted at enabling companies to

Accepted Answer

A)  establish multiple manufacturing facilities in each major national market.
B)  build large inventories.
C)  achieve product standardization across markets.
D)  increase their work in progress.
E)  produce customized products without a significant cost penalty.F) B) and C)
G) C) and D)

Question 10

Champion Works Inc.is an animation company,headquartered in the United States.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 most likely 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) B) and E)
G) A) and B)

Question 11

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the two basic strategies for locating production facilities.When is it most appropriate to centralize production?

Accepted Answer

There are two basic strategies for locat...

Question 13

Which of the following statements is true of Six Sigma?

Accepted Answer

A)  The higher the number of "sigmas," the higher the number of errors.
B)  At Six Sigma,a production process would be 90 percent accurate.
C)  Six Sigma work standards are based solely on numbers or quotas.
D)  It is almost impossible for a company to achieve Six Sigma perfection.
E)  Six Sigma is the modern successor to ISO 9000.F) A) and B)
G) B) and E)

Question 14

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) C) and D)
G) D) and E)

Question 15

Geminia Systems,a 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 C)
G) A) and D)

Question 16

Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations.The major brakes on this trend are

Accepted Answer

A)  differences in endowment factors.
B)  transportation costs and trade barriers.
C)  rising national differences in consumer tastes and preferences.
D)  growing free trade areas and democracy.
E)  declining fluctuations in exchange rates.F) A) and E)
G) A) and B)

Question 17

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Accepted Answer

A) True 
 B)False

Question 18

A firm that improves its quality control cannot reduce its costs of value creation simultaneously.

Accepted Answer

A) True 
 B)False

Question 19

The effect of improved quality control is to lower the costs of value creation by reducing production costs and

Accepted Answer

A)  decreasing inventory turnover.
B)  decreasing after-sales service costs.
C)  increasing scrap costs.
D)  increasing warranty costs.
E)  increasing time spent on fixing defects.F) A) and B)
G) A) and D)

Question 20

When is decentralization of manufacturing facilities most appropriate?

Accepted Answer

A)  when the product serves universal needs
B)  when exchange rates are expected to remain relatively stable
C)  when the product's value-to-weight ratio is high
D)  when there are few trade barriers
E)  when the production technology has low minimum efficient scaleF) None of the above
G) B) and D)

Exam 15: Global Production and Supply Chain Management

Under a more traditional system as opposed to a just-in-time inventory system,warehousing parts for weeks before they are used will

Correct Answer
verified

Discuss the two basic strategies for locating production facilities.When is it most appropriate to centralize production?

Correct Answer
verified
There are two basic strategies for locat...
View Answer

The effect of improved quality control is to lower the costs of value creation by reducing production costs and

Correct Answer
verified

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Correct Answer
verified

Correct Answer
verified

Which of the following statements is true of Six Sigma?

Correct Answer
verified

What are the important strategic objectives of an international firm's production and logistics functions?

Correct Answer
verified
The production and logistics functions o...
View Answer

Which of the following is a philosophy that was widely adopted,first by Japanese companies and then American companies during the 1980s and early 1990s and from which the Six Sigma methodology directly descended?

Correct Answer
verified

Correct Answer
verified

_____ has caused proprietary software solutions to implement electronic data interchange systems become obsolete.

Correct Answer
verified

Correct Answer
verified

Geminia Systems,a 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

A firm that improves its quality control cannot reduce its costs of value creation simultaneously.

Correct Answer
verified

When is decentralization of manufacturing facilities most appropriate?

Correct Answer
verified

Correct Answer
verified

Define minimum efficient scale of output.How does this influence the location decisions of production activities?

Correct Answer
verified
The level of output at which most plant-...
View Answer

Flexible manufacturing technologies are specially targeted at enabling companies to

Correct Answer
verified

The level of output at which most plant-level scale economies are exhausted is known as

Correct Answer
verified

Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations.The major brakes on this trend are

Correct Answer
verified

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

Under a more traditional system as opposed to a just-in-time inventory system,warehousing parts for weeks before they are used will

Correct AnswerverifiedShow Answer

Discuss the two basic strategies for locating production facilities.When is it most appropriate to centralize production?

Correct AnswerverifiedThere are two basic strategies for locat...View AnswerShow Answer

The effect of improved quality control is to lower the costs of value creation by reducing production costs and

Correct AnswerverifiedShow Answer

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true of Six Sigma?

Correct AnswerverifiedShow Answer

What are the important strategic objectives of an international firm's production and logistics functions?

Correct AnswerverifiedThe production and logistics functions o...View AnswerShow Answer

Which of the following is a philosophy that was widely adopted,first by Japanese companies and then American companies during the 1980s and early 1990s and from which the Six Sigma methodology directly descended?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

_____ has caused proprietary software solutions to implement electronic data interchange systems become obsolete.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Geminia Systems,a 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

A firm that improves its quality control cannot reduce its costs of value creation simultaneously.

Correct AnswerverifiedShow Answer

When is decentralization of manufacturing facilities most appropriate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Define minimum efficient scale of output.How does this influence the location decisions of production activities?

Correct AnswerverifiedThe level of output at which most plant-...View AnswerShow Answer

Flexible manufacturing technologies are specially targeted at enabling companies to

Correct AnswerverifiedShow Answer

The level of output at which most plant-level scale economies are exhausted is known as

Correct AnswerverifiedShow Answer

Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations.The major brakes on this trend are

Correct AnswerverifiedShow Answer

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
There are two basic strategies for locat...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The production and logistics functions o...
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
The level of output at which most plant-...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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