Question 1

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 2

A product's value-to-weight ratio affects location decision primarily because of its influence on:

Accepted Answer

A)  transportation costs.
B)  shelf life.
C)  work-in-progress inventory.
D)  inventory turnover.
E)  capacity utilization.F) B) and E)
G) A) and B)

Question 3

Which of the following has caused proprietary software solutions to implement electronic data interchange systems become obsolete?

Accepted Answer

A)  Just-in-time inventory system
B)  Flexible machine technology
C)  The Internet
D)  Dynamic capabilities
E)  Social NetworkingF) All of the above
G) A) and B)

Question 4

Which of the following is true of a product that serves universal needs?

Accepted Answer

A)  It becomes necessary to customize the product to suit small consumer groups.
B)  It becomes necessary to accommodate demands for local responsiveness.
C)  It increases the attractiveness of concentrating production at an optimal location.
D)  It is difficult to serve national differences in consumer taste and preference.
E)  It is always attractive to globally disperse production to all major markets.F) D) and E)
G) All of the above

Question 5

The basic philosophy behind just-in-time (JIT)  inventory systems is to:

Accepted Answer

A)  economize on inventory holding costs.
B)  reduce inventory turnover.
C)  create a buffer stock of inventory.
D)  reduce costs by reducing quality.
E)  increase the total working capital requirement.F) A) and E)
G) A) and D)

Question 6

Which of the following is a consequence of changes in exchange rates that result in appreciation of the local currency?

Accepted Answer

A)  More foreign direct investment into the country
B)  Decrease in the dollar cost of products exported from the country
C)  Diminishing of a country's attractiveness as a manufacturing base
D)  Transformation of the country into a low-cost location
E)  Decrease in the amount of imports brought into the countryF) D) and E)
G) A) and B)

Question 7

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) C) and D)

Question 8

Which of the following is an objective of logistics?

Accepted Answer

A)  Increase the cost of value creation
B)  Manage a firm's global supply chain at a low cost
C)  Reduce inventory turnover
D)  Reduce a firm's customer responsiveness
E)  Increase inventory holding costsF) A) and B)
G) A) and C)

Question 9

Which of the following increases under just-in-time (JIT)  inventory system?

Accepted Answer

A)  Amount of working capital for inventory
B)  Inventory turnover
C)  Number of defective parts
D)  Inventory holding costs
E)  Storage costsF) B) and E)
G) A) and E)

Question 10

With the advent of flexible manufacturing technologies and mass customization, establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Accepted Answer

A) True 
 B)False

Question 11

Production and logistics functions must be able to accommodate demands for local responsiveness. Elaborate.

Accepted Answer

Production and logistics functions must ...

Question 12

Uvicon Inc. and Bionor Inc. are firms that compete against each other in the global market. Uvicon has a high level of fixed costs and high minimum efficient scale, whereas Bionor has a low level of fixed costs and low minimum efficient scale. In this scenario, which of the following is true?

Accepted Answer

A)  Uvicon will be better prepared to hedge against potential adverse moves in currencies than Bionor.
B)  Uvicon will benefit from centralizing its production activities and Bionor from decentralizing.
C)  Uvicon will have more bargaining power over contract manufacturers than Bionor.
D)  Uvicon will be better enabled to adapt to changes in consumer demand in regional markets than Bionor.
E)  Uvicon will be better prepared to accommodate demands for local responsiveness than Bionor.F) A) and D)
G) All of the above

Question 13

Concentration of production makes most sense when:

Accepted Answer

A)  trade barriers are low.
B)  the product's value-to-weight ratio is low.
C)  important exchange rates are volatile.
D)  flexible manufacturing technology does not exist.
E)  the production technology has low fixed costs.F) C) and D)
G) A) and B)

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following increases when a company achieves mass customization via flexible manufacturing technologies?

Accepted Answer

A)  Cost structure
B)  Waste
C)  Customer responsiveness
D)  Learning effects
E)  ExternalitiesF) A) and D)
G) C) and D)

Question 17

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

Question 18

Which of the following statements is true of flexible manufacturing technologies?

Accepted Answer

A)  They promote the idea of manufacturing in each major market.
B)  They fail to produce multiple models from the same line.
C)  They are used to reconcile the goals of large volumes and standardized output.
D)  They decrease the utilization of individual machines.
E)  They allow firms to customize products to national differences at a single facility.F) C) and E)
G) All of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

In terms of Six Sigma, the higher the number of "sigmas," the greater the number of errors.

Accepted Answer

A) True 
 B)False

Exam 15: Global Production and Supply Chain Management

Which of the following statements is true of flexible manufacturing technologies?

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

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

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

Which of the following is an objective of logistics?

Correct AnswerverifiedShow Answer

Which of the following increases when a company achieves mass customization via flexible manufacturing technologies?

Correct AnswerverifiedShow Answer

With the advent of flexible manufacturing technologies and mass customization, establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of a product that serves universal needs?

Correct AnswerverifiedShow Answer

The basic philosophy behind just-in-time (JIT) inventory systems is to:

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

Which of the following increases under just-in-time (JIT) inventory system?

Correct AnswerverifiedShow Answer

In terms of Six Sigma, the higher the number of "sigmas," the greater the number of errors.

Correct AnswerverifiedShow Answer

Which of the following is a consequence of changes in exchange rates that result in appreciation of the local currency?

Correct AnswerverifiedShow Answer

Uvicon Inc. and Bionor Inc. are firms that compete against each other in the global market. Uvicon has a high level of fixed costs and high minimum efficient scale, whereas Bionor has a low level of fixed costs and low minimum efficient scale. In this scenario, which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following has caused proprietary software solutions to implement electronic data interchange systems become obsolete?

Correct AnswerverifiedShow Answer

Production and logistics functions must be able to accommodate demands for local responsiveness. Elaborate.

Correct AnswerverifiedProduction and logistics functions must ...View AnswerShow Answer

Concentration of production makes most sense when:

Correct AnswerverifiedShow Answer

A product's value-to-weight ratio affects location decision primarily because of its influence on:

Correct AnswerverifiedShow Answer

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Production and logistics functions must ...
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