Question 1

What is a drawback of ISO 9000 certification?

Accepted Answer

A)   It is bureaucratic and costly for many firms.
B)   It is an impossible standard to achieve.
C)   It is losing its prominence in international business.
D)   It is ineffective in improving processes.
E)   It is ineffective in bringing about quality improvement.F) A) and B)
G) C) and D)

Question 2

The inform function of packaging refers to the package's ability to contain the products properly.

Accepted Answer

A) True 
 B)False

Question 3

What is an example of a product with a low value-to-weight ratio?

Accepted Answer

A)   jewelry
B)   electronic components
C)   musical instruments
D)   paint
E)   pharmaceuticalsF) A) and E)
G) B) and D)

Question 4

How do location externalities affect a country's attractiveness as a manufacturing base? Provide an example.

Accepted Answer

Externalities include the presence of an...

Question 5

A JIT system provides a company with enough buffer stock to meet any product demands.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the three general forms of packaging and their purpose.

Accepted Answer

Packaging comes in all shapes, sizes, fo...

Question 7

Small electronic parts have a high value-to-weight ratio, which means that they

Accepted Answer

A)   are cheap to produce and don't weigh very much.
B)   weigh very little but are expensive.
C)   can cost less when mass produced.
D)   are poor candidates for international shipments.
E)   are taxed at a higher rate.F) B) and C)
G) B) and E)

Question 8

Manufacturing firms should typically aim at lowering the costs of value creation by

Accepted Answer

A)   decreasing inventory turnover.
B)   stocking huge amounts of inventory.
C)   lowering the quality of products.
D)   increasing after-sales services cost.
E)   reducing production costs.F) C) and E)
G) C) and D)

Question 9

One objective of lean production is to

Accepted Answer

A)   reduce the quality of a product to keep unit costs low.
B)   reduce setup times for complex equipment.
C)   replace product variety with standardized output.
D)   decrease utilization of individual machines through scheduling.
E)   increase the level of minimum efficient scale of output.F) C) and D)
G) A) and B)

Question 10

Pioneer Plastics is based in the United States and has transferred its information technology processes to suppliers in Canada. What is this an example of?

Accepted Answer

A)   reverse logistics
B)   insourcing
C)   nearshoring
D)   mass customization
E)   co-sourcingF) A) and B)
G) A) and C)

Question 11

One characteristic of a just-in-time (JIT)  inventory system is that

Accepted Answer

A)   a company is more likely to have excess unsold inventory to write off against earnings.
B)   parts enter the manufacturing process immediately; they are not warehoused.
C)   it is difficult to spot and fix defective inputs.
D)   the working capital a company needs to finance inventory increases is high.
E)   a firm has an ample buffer stock of inventory.F) C) and D)
G) None of the above

Question 12

What philosophy 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) B) and E)
G) C) and D)

Question 13

The ________ function of packaging refers to the ability of a product in a package to handle being transported between areas within the global supply chain.

Accepted Answer

A)   protect
B)   partition
C)   inform
D)   impact
E)   performF) B) and E)
G) None of the above

Question 14

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 15

Sound-Rite Audio wants to enter the European market but realizes that consumer tastes are not uniform across countries. To be able to accommodate demands for local responsiveness, Sound-Rite Audio should

Accepted Answer

A)   ignore national differences in consumer tastes and preferences.
B)   decentralize production activities to the major national or regional markets.
C)   ensure that the manufacturing processes in all units are identical.
D)   standardize the product coming out of all manufacturing units.
E)   refrain from hiring host country managers.F) B) and D)
G) A) and E)

Question 16

A lead factory would typically be located near a competitor's headquarters to function as the intelligence-gathering unit of the company.

Accepted Answer

A) True 
 B)False

Question 17

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 B)
G) C) and E)

Question 18

A-1 Athletic Shoes has wide variety in its product line. A firm with a wide product variety will find it

Accepted Answer

A)   difficult to achieve shorter product runs.
B)   difficult to increase its product sales.
C)   difficult to reduce its unit costs.
D)   easy to realize economies of scale.
E)   easy to reach optimum production efficiency.F) B) and E)
G) C) and E)

Question 19

An advantage of a low minimum efficient scale is it allows a company to accommodate demands for local responsiveness.

Accepted Answer

A) True 
 B)False

Question 20

Flexible manufacturing technologies force a company to establish manufacturing facilities in each major national market in order to meet demand.

Accepted Answer

A) True 
 B)False

Exam 15: Global Production and Supply Chain Management

A JIT system provides a company with enough buffer stock to meet any product demands.

Correct AnswerverifiedShow Answer

Small electronic parts have a high value-to-weight ratio, which means that they

Correct AnswerverifiedShow Answer

What is an example of a product with a low value-to-weight ratio?

Correct AnswerverifiedShow Answer

Sound-Rite Audio wants to enter the European market but realizes that consumer tastes are not uniform across countries. To be able to accommodate demands for local responsiveness, Sound-Rite Audio should

Correct AnswerverifiedShow Answer

How do location externalities affect a country's attractiveness as a manufacturing base? Provide an example.

Correct AnswerverifiedExternalities include the presence of an...View AnswerShow Answer

Flexible manufacturing technologies force a company to establish manufacturing facilities in each major national market in order to meet demand.

Correct AnswerverifiedShow Answer

What philosophy 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

The ________ function of packaging refers to the ability of a product in a package to handle being transported between areas within the global supply chain.

Correct AnswerverifiedShow Answer

Pioneer Plastics is based in the United States and has transferred its information technology processes to suppliers in Canada. What is this an example of?

Correct AnswerverifiedShow Answer

One characteristic of a just-in-time (JIT) inventory system is that

Correct AnswerverifiedShow Answer

One objective of lean production is to

Correct AnswerverifiedShow Answer

A-1 Athletic Shoes has wide variety in its product line. A firm with a wide product variety will find it

Correct AnswerverifiedShow Answer

A lead factory would typically be located near a competitor's headquarters to function as the intelligence-gathering unit of the company.

Correct AnswerverifiedShow Answer

Manufacturing firms should typically aim at lowering the costs of value creation by

Correct AnswerverifiedShow Answer

An advantage of a low minimum efficient scale is it allows a company to accommodate demands for local responsiveness.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Discuss the three general forms of packaging and their purpose.

Correct AnswerverifiedPackaging comes in all shapes, sizes, fo...View AnswerShow 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

The inform function of packaging refers to the package's ability to contain the products properly.

Correct AnswerverifiedShow Answer

What is a drawback of ISO 9000 certification?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Externalities include the presence of an...
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
Packaging comes in all shapes, sizes, fo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified