Question 1

Describe flexible manufacturing and mass customization and explain how they affect the costs and efficiency of a company.

Accepted Answer

The term flexible manufacturing technolo...

Question 2

In international business, a relatively high level of fixed costs make it economical for a company to perform a particular activity in several locations at once.

Accepted Answer

A) True 
 B)False

Question 3

A business would incorporate the Six Sigma philosophy as a way to

Accepted Answer

A)   locate customers.
B)   distribute product internationally.
C)   organize financial data.
D)   eliminate waste.
E)   count inventory.F) B) and C)
G) A) and E)

Question 4

Companies rely on an EDI system to

Accepted Answer

A)   pinpoint the right customer base.
B)   minimize manufacturing mistakes.
C)   assess the skills of job applicants.
D)   exchange data between two or more companies.
E)   control the return of product.F) A) and B)
G) B) and D)

Question 5

Centex Systems sources cables and wires from The Wrapper Corp. In this situation, The Wrapper Corp. is part of the ________ portion of the global supply chain.

Accepted Answer

A)   downstream
B)   marketing
C)   upstream
D)   differential
E)   processF) C) and D)
G) All of the above C

Question 6

What is an accurate depiction of Six Sigma?

Accepted Answer

A)   The higher the number of "sigmas," the higher the number of errors.
B)   When using 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 necessary to achieve balanced supply and demand.F) A) and B)
G) D) and E)

Question 7

How does a just-in-time inventory system help enhance product quality?

Accepted Answer

A)   Ordering parts only when needed allows a company to customize products.
B)   Defective parts are noticed more quickly than in a traditional warehouse system.
C)   JIT creates a nearly error-free production process.
D)   It reduces the costs related to inventory holding which creates a larger budget for product enhancement.
E)   It reduces the need to write off excess unsold inventory against earnings.F) C) and D)
G) D) and E)

Question 8

Which company is using the total quality management steps identified by W. Edwards Deming?

Accepted Answer

A)   Mercury Inc. believes in reducing interactions between employees and their supervisors.
B)   Neptune Inc. empowers its employees to report problems or recommend improvements without any fear.
C)   Hudson Inc. bases its work standards solely on numbers or quotas.
D)   Ontario Inc. believes that management is not responsible for training employees in new skills.
E)   Huron Inc. asserts that achievement of better quality is solely dependent on lower management.F) B) and D)
G) B) and C)

Question 9

One downfall of flexible manufacturing technology is that it does not help a company customize products for different national markets.

Accepted Answer

A) True 
 B)False  False

Question 10

ClearWater Engineers Inc. wants to be able to customize products for different national markets and, in turn, increase its customer responsiveness. However, the fixed costs associated with its production are high. These functions will be performed most efficiently if ClearWater Engineers

Accepted Answer

A)   sets up a new production facility that is well suited for mass production.
B)   establishes multiple manufacturing facilities in each major national market.
C)   increases each manufacturing unit's minimum efficient scale of output.
D)   adopts flexible manufacturing technologies to help achieve mass customization.
E)   locates its production unit in countries that have fluctuations in exchange rates.F) A) and D)
G) A) and E)

Question 11

As a way to save costs, The Foundry Inc. set up a factory in a foreign country to produce the component parts it uses in the farm equipment it manufactures. The technology at this factory is kept to a minimum and management has no say in purchasing or production decisions. What type of factory is Foundry Inc. using?

Accepted Answer

A)   server
B)   outpost
C)   contributor
D)   source
E)   offshoreF) C) and E)
G) B) and D)

Question 12

SuspendHers Inc., a maker of fashionable belts and accessories for women, plans to expand in the EU marketplace. To do so, the EU requires the company to

Accepted Answer

A)   adopt techniques of total quality management.
B)   achieve Six Sigma.
C)   use just-in-time inventory system.
D)   patent its designs and technology.
E)   certify its products under ISO 9000.F) All of the above
G) D) and E)

Question 13

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 fixed costsF) B) and C)
G) C) and E)

Question 14

Finder Technologies Inc. has manufacturing units in Canada. The country's stable economic and political environment helps the firm gain competitive advantage by lowering 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)   a production possibility frontier.
D)   factor endowments.
E)   logistics economies.F) All of the above
G) B) and E)

Question 15

________ is a hidden cost to basing production in a foreign location.

Accepted Answer

A)   Low employee turnover
B)   Low labor cost
C)   Poor product quality
D)   Expensive higher education system
E)   Low inventory turnoverF) C) and E)
G) All of the above

Question 16

NewTone Manufacturing does not keep excess stock on hand. When orders are received, the company brings in parts from suppliers, creates products, and fulfils the order. This represents a ________ system

Accepted Answer

A)   fulfillment warehouse
B)   periodic review
C)   buffer stock
D)   just-in-time inventory
E)   wholesaleF) B) and D)
G) B) and C)

Question 17

Which product is best manufactured in multiple locations close to major markets to reduce transportation costs?

Accepted Answer

A)   pharmaceuticals
B)   petroleum products
C)   books
D)   magazines
E)   electronicsF) B) and E)
G) A) and B)

Question 18

Under a just-in-time (JIT)  inventory system, it is likely that the ________ will increase.

Accepted Answer

A)   amount of working capital for inventory
B)   inventory turnover
C)   number of defective parts
D)   inventory holding costs
E)   storage costsF) A) and E)
G) C) and D) B

Question 19

In recent years, time-based competition has become less important in international business.

Accepted Answer

A) True 
 B)False

Question 20

In recent years, the trend among U.S. firms is to outsource the "production" of some service activities to developing nations to take advantage of lower labor costs.

Accepted Answer

A) True 
 B)False

Exam 15: Global Production and Supply Chain Management

Describe flexible manufacturing and mass customization and explain how they affect the costs and efficiency of a company.

Correct Answer
verified
The term flexible manufacturing technolo...
View Answer

In international business, a relatively high level of fixed costs make it economical for a company to perform a particular activity in several locations at once.

Correct Answer
verified

A business would incorporate the Six Sigma philosophy as a way to

Correct Answer
verified

Companies rely on an EDI system to

Correct Answer
verified

Centex Systems sources cables and wires from The Wrapper Corp. In this situation, The Wrapper Corp. is part of the ________ portion of the global supply chain.

Correct Answer
verified
C

What is an accurate depiction of Six Sigma?

Correct Answer
verified

How does a just-in-time inventory system help enhance product quality?

Correct Answer
verified

Which company is using the total quality management steps identified by W. Edwards Deming?

Correct Answer
verified

One downfall of flexible manufacturing technology is that it does not help a company customize products for different national markets.

Correct Answer
verified
False

ClearWater Engineers Inc. wants to be able to customize products for different national markets and, in turn, increase its customer responsiveness. However, the fixed costs associated with its production are high. These functions will be performed most efficiently if ClearWater Engineers

Correct Answer
verified

Correct Answer
verified

SuspendHers Inc., a maker of fashionable belts and accessories for women, plans to expand in the EU marketplace. To do so, the EU requires the company to

Correct Answer
verified

When is decentralization of manufacturing facilities most appropriate?

Correct Answer
verified

Correct Answer
verified

________ is a hidden cost to basing production in a foreign location.

Correct Answer
verified

NewTone Manufacturing does not keep excess stock on hand. When orders are received, the company brings in parts from suppliers, creates products, and fulfils the order. This represents a ________ system

Correct Answer
verified

Which product is best manufactured in multiple locations close to major markets to reduce transportation costs?

Correct Answer
verified

Under a just-in-time (JIT) inventory system, it is likely that the ________ will increase.

Correct Answer
verified
B

In recent years, time-based competition has become less important in international business.

Correct Answer
verified

In recent years, the trend among U.S. firms is to outsource the "production" of some service activities to developing nations to take advantage of lower labor costs.

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

Describe flexible manufacturing and mass customization and explain how they affect the costs and efficiency of a company.

Correct AnswerverifiedThe term flexible manufacturing technolo...View AnswerShow Answer

In international business, a relatively high level of fixed costs make it economical for a company to perform a particular activity in several locations at once.

Correct AnswerverifiedShow Answer

A business would incorporate the Six Sigma philosophy as a way to

Correct AnswerverifiedShow Answer

Companies rely on an EDI system to

Correct AnswerverifiedShow Answer

Centex Systems sources cables and wires from The Wrapper Corp. In this situation, The Wrapper Corp. is part of the ________ portion of the global supply chain.

Correct AnswerverifiedC

What is an accurate depiction of Six Sigma?

Correct AnswerverifiedShow Answer

How does a just-in-time inventory system help enhance product quality?

Correct AnswerverifiedShow Answer

Which company is using the total quality management steps identified by W. Edwards Deming?

Correct AnswerverifiedShow Answer

One downfall of flexible manufacturing technology is that it does not help a company customize products for different national markets.

Correct AnswerverifiedFalse

ClearWater Engineers Inc. wants to be able to customize products for different national markets and, in turn, increase its customer responsiveness. However, the fixed costs associated with its production are high. These functions will be performed most efficiently if ClearWater Engineers

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

SuspendHers Inc., a maker of fashionable belts and accessories for women, plans to expand in the EU marketplace. To do so, the EU requires the company to

Correct AnswerverifiedShow Answer

When is decentralization of manufacturing facilities most appropriate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ is a hidden cost to basing production in a foreign location.

Correct AnswerverifiedShow Answer

NewTone Manufacturing does not keep excess stock on hand. When orders are received, the company brings in parts from suppliers, creates products, and fulfils the order. This represents a ________ system

Correct AnswerverifiedShow Answer

Which product is best manufactured in multiple locations close to major markets to reduce transportation costs?

Correct AnswerverifiedShow Answer

Under a just-in-time (JIT) inventory system, it is likely that the ________ will increase.

Correct AnswerverifiedB

In recent years, time-based competition has become less important in international business.

Correct AnswerverifiedShow Answer

In recent years, the trend among U.S. firms is to outsource the "production" of some service activities to developing nations to take advantage of lower labor costs.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The term flexible manufacturing technolo...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

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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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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