Question 1

How do flexible machine cells work? What is the advantage of incorporating this type of technology into a strategy?

Accepted Answer

Flexible machine cells are a common flex...

Question 2

Decentralization of production is appropriate when _____.

Accepted Answer

A)   a product's value-to-weight ratio is high
B)   the product serves universal needs
C)   barriers to trade are low
D)   volatility in key exchange rates is expected

Question 3

Which of the following is a drawback of a just-in-time system?

Accepted Answer

A)   Transport costs are high when using a just-in-time system.
B)   It leaves a firm without a buffer stock of inventory.
C)   It increases the warranty costs associated with products.
D)   It leaves a firm with high scrap costs associated with defective products.

Question 4

Explain specialized assets with an example.

Accepted Answer

A specialized asset is an asset whose va...

Question 5

RSA is a bicycle manufacturing company.Which of the following is a make-or-buy decision that the company will have to make?

Accepted Answer

A)   Should the company increase its responsiveness toward the retailers?
B)   What are the products that the company should manufacture?
C)   Should the company outsource production to a low-cost vendor?
D)   What should be the pricing strategy of the company's product?

Question 6

Lean production covers a range of manufacturing technologies designed to reduce setup times for complex equipment.

Accepted Answer

A) True 
 B)False

Question 7

Logistics is the activity that controls the _____.

Accepted Answer

A)   transmission of physical materials through the value chain
B)   customer contact points of a business
C)   activities involved in creating a product
D)   information exchange between a business and its customers

Question 8

When a company's product has a low value-to-weight ratio,the company should _____.

Accepted Answer

A)   produce the product from two or three optimal locations and ship products from there
B)   manufacture products from a centralized location
C)   ignore transportation costs as they would only be a minor part
D)   produce the product in multiple locations close to major markets

Question 9

Lowering the costs is one of the objectives of the production and logistics function of an international firm.

Accepted Answer

A) True 
 B)False

Question 10

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 11

How has the adoption of just-in-time inventory systems,computer-aided design,and computer-aided manufacturing impact firms' associations with suppliers?

Accepted Answer

A)   The bargaining power of the firms over their suppliers has increased enormously.
B)   It has reduced the level of data sharing between firms and their suppliers.
C)   Firms are capable of switching suppliers often due to such technologies.
D)   It has increased pressures to establish long-term relationships with suppliers.

Question 12

With a(n) _____ system,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

Accepted Answer

A)   CAD
B)   JIT
C)   CAM
D)   EDI

Question 13

Strategic alliances build trust between the firm and its suppliers.

Accepted Answer

A) True 
 B)False

Question 14

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Accepted Answer

The JIT system was developed by Japanese...

Question 15

The major cost saving associated with JIT systems comes from _____.

Accepted Answer

A)   early delivery of raw materials to production
B)   decentralization of manufacturing
C)   speeding up inventory turnover
D)   reduced spending on CRM activities

Question 16

Just-in-time systems help a firm respond quickly to increases in demand.

Accepted Answer

A) True 
 B)False

Question 17

When does concentration of production make sense?

Accepted Answer

There are several situations when concen...

Question 18

Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

Accepted Answer

A) True 
 B)False

Question 19

At Six Sigma,a production process would be highly accurate and create just _____.

Accepted Answer

A)   3.4 defects per hundred thousand units
B)   6.8 defects per million units
C)   3.4 defects per million units
D)   6.8 defects per hundred thousand units

Question 20

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

Exam 17: Global Production, Outsourcing, and Logistics

Explain specialized assets with an example.

Correct AnswerverifiedA specialized asset is an asset whose va...View AnswerShow Answer

How do flexible machine cells work? What is the advantage of incorporating this type of technology into a strategy?

Correct AnswerverifiedFlexible machine cells are a common flex...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Lean production covers a range of manufacturing technologies designed to reduce setup times for complex equipment.

Correct AnswerverifiedShow Answer

Decentralization of production is appropriate when _____.

Correct AnswerverifiedShow Answer

How has the adoption of just-in-time inventory systems,computer-aided design,and computer-aided manufacturing impact firms' associations with suppliers?

Correct AnswerverifiedShow Answer

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Correct AnswerverifiedThe JIT system was developed by Japanese...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

When does concentration of production make sense?

Correct AnswerverifiedThere are several situations when concen...View AnswerShow Answer

Lowering the costs is one of the objectives of the production and logistics function of an international firm.

Correct AnswerverifiedShow Answer

RSA is a bicycle manufacturing company.Which of the following is a make-or-buy decision that the company will have to make?

Correct AnswerverifiedShow Answer

When a company's product has a low value-to-weight ratio,the company should _____.

Correct AnswerverifiedShow Answer

At Six Sigma,a production process would be highly accurate and create just _____.

Correct AnswerverifiedShow Answer

The major cost saving associated with JIT systems comes from _____.

Correct AnswerverifiedShow Answer

Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

Correct AnswerverifiedShow Answer

Which of the following is a drawback of a just-in-time system?

Correct AnswerverifiedShow Answer

Just-in-time systems help a firm respond quickly to increases in demand.

Correct AnswerverifiedShow Answer

Logistics is the activity that controls the _____.

Correct AnswerverifiedShow Answer

Strategic alliances build trust between the firm and its suppliers.

Correct AnswerverifiedShow Answer

With a(n) _____ system,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

Correct AnswerverifiedShow Answer

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A specialized asset is an asset whose va...
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Flexible machine cells are a common flex...
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Correct Answer
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The JIT system was developed by Japanese...
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There are several situations when concen...
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