Question 1

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 2

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the strategic objectives of the production and logistics functions of an international firm.

Accepted Answer

The production and logistics functions o...

Question 4

What is mass customization?

Accepted Answer

The term mass customization has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile two goals that were once thought to be incompatible: low cost and product customization.Mass customization implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a cost penalty.Research suggests that the adoption of flexible manufacturing technologies may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Question 5

Firms would prefer buying component parts,or an entire product,from independent suppliers to protect proprietary product technologies.

Accepted Answer

A) True 
 B)False

Question 6

Products such as refined sugar,certain bulk chemicals,paint,and petroleum products have low value-to-weight ratios.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

Accepted Answer

A) True 
 B)False

Question 9

Use of technologies such as just-in-time inventory systems and computer-aided design has reduced pressures for firms to establish long-term relationships with their suppliers.

Accepted Answer

A) True 
 B)False

Question 10

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following makes being dependent on one location particularly risky?

Accepted Answer

A)   Governmental intervention in exchange rates
B)   Floating exchange rates
C)   Fixed exchange rates
D)   Preferential treatment of domestic industriesE) A) and B)
F) None of the above

Question 12

Mass customization facilitates product customization at low costs.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False  True

Question 14

Explain how fixed costs impact the decision to locate a plant.

Accepted Answer

In some cases the fixed costs of setting...

Question 15

Explain make-or-buy decisions with an example.

Accepted Answer

International businesses frequently face...

Question 16

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 flexible manufacturing technology.A flexible machine cell is a grouping of various types of machinery,a common materials handler,and a centralized cell controller (computer).Each cell normally contains four to six machines capable of performing various operations.The typical cell is dedicated to the production of a family of parts or products.The settings on machines are computer controlled.This allows each cell to switch quickly between the production of different parts or products.

Question 17

Vertical integration refers to _____.

Accepted Answer

A)   outsourcing production to a low-cost based company
B)   making all or part of a product in-house
C)   using multiple suppliers to procure raw materials
D)   procuring raw materials or products from a single supplierE) B) and D)
F) All of the above

Question 18

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

Accepted Answer

A) True 
 B)False

Question 19

According to the concept of economies of scale,as plant output expands,_____.

Accepted Answer

A)   productivity decline
B)   total costs decrease
C)   unit costs decrease
D)   utilization of capital declineE) A) and B)
F) All of the above

Question 20

Decentralization of production is appropriate when location externalities are important.

Accepted Answer

A) True 
 B)False

Exam 17: Global Production and Supply Chain Management

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

Correct Answer
verified

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Correct Answer
verified

Discuss the strategic objectives of the production and logistics functions of an international firm.

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

What is mass customization?

Firms would prefer buying component parts,or an entire product,from independent suppliers to protect proprietary product technologies.

Correct Answer
verified

Products such as refined sugar,certain bulk chemicals,paint,and petroleum products have low value-to-weight ratios.

Correct Answer
verified

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

Correct Answer
verified

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

Correct Answer
verified

Use of technologies such as just-in-time inventory systems and computer-aided design has reduced pressures for firms to establish long-term relationships with their suppliers.

Correct Answer
verified

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Correct Answer
verified

Which of the following makes being dependent on one location particularly risky?

Correct Answer
verified

Mass customization facilitates product customization at low costs.

Correct Answer
verified

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

Correct Answer
verified
True

Explain how fixed costs impact the decision to locate a plant.

Correct Answer
verified
In some cases the fixed costs of setting...
View Answer

Explain make-or-buy decisions with an example.

Correct Answer
verified
International businesses frequently face...
View Answer

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

Vertical integration refers to _____.

Correct Answer
verified

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

Correct Answer
verified

According to the concept of economies of scale,as plant output expands,_____.

Correct Answer
verified

Decentralization of production is appropriate when location externalities are important.

Correct Answer
verified

Exam 17: Global Production and Supply Chain Management

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

Correct AnswerverifiedShow Answer

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Correct AnswerverifiedShow Answer

Discuss the strategic objectives of the production and logistics functions of an international firm.

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

What is mass customization?

Firms would prefer buying component parts,or an entire product,from independent suppliers to protect proprietary product technologies.

Correct AnswerverifiedShow Answer

Products such as refined sugar,certain bulk chemicals,paint,and petroleum products have low value-to-weight ratios.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

Correct AnswerverifiedShow Answer

Use of technologies such as just-in-time inventory systems and computer-aided design has reduced pressures for firms to establish long-term relationships with their suppliers.

Correct AnswerverifiedShow Answer

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Correct AnswerverifiedShow Answer

Which of the following makes being dependent on one location particularly risky?

Correct AnswerverifiedShow Answer

Mass customization facilitates product customization at low costs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

Explain how fixed costs impact the decision to locate a plant.

Correct AnswerverifiedIn some cases the fixed costs of setting...View AnswerShow Answer

Explain make-or-buy decisions with an example.

Correct AnswerverifiedInternational businesses frequently face...View AnswerShow Answer

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

Vertical integration refers to _____.

Correct AnswerverifiedShow Answer

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

Correct AnswerverifiedShow Answer

According to the concept of economies of scale,as plant output expands,_____.

Correct AnswerverifiedShow Answer

Decentralization of production is appropriate when location externalities are important.

Correct AnswerverifiedShow Answer

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
True

Correct Answer
verified
In some cases the fixed costs of setting...
View Answer

Correct Answer
verified
International businesses frequently face...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified