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Q:
Mass customization facilitates product customization at low costs.
⊚ true
⊚ false
Q:
Six Sigma is a qualitative alternative to total quality management that focuses primarily on managing human resources to improve profitability.
⊚ true
⊚ false
Q:
The upstream portion of the global supply chain includes all of the organizations and resources in the supply chain.
⊚ true
⊚ false
Q:
Logistics includes the buying of raw materials and component parts.
⊚ true
⊚ false
Q:
Production is also sometimes referred to as operations as part of a global supply chain.
⊚ true
⊚ false
Q:
_____ refers to shared decision-making opportunities and operational collaboration of key global supply chain activities.
A) Global supply chain coordination
B) Make-or-buy decision
C) Reverse logistics
D) Global sourcing
Q:
Just-in-time systems
A) leave a firm without a buffer stock of inventory.
B) ensure that product is always available.
C) help a firm respond quickly to increases in demand.
D) allow for stockpiling of key components of production.
Q:
With _____ system, suppliers, shippers, and the purchasing firm can communicate with each other with no time delay.
A) a CAD
B) a JIT
C) a CAM
D) an EDI
Q:
What is a drawback of a just-in-time system?
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.
Q:
Just-in-time inventory systems
A) are used when procurement is not organized.
B) require large warehouses for storage.
C) economize on inventory holding costs.
D) maintain large buffer for inventory.
Q:
The major cost saving associated with JIT systems comes from
A) early delivery of raw materials to production.
B) decentralization of manufacturing.
C) speeding up inventory turnover.
D) reduced spending on CRM activities.
Q:
A multinational corporation uses both its own employees from inside the firm and an external supplier to perform certain tasks, often in concert with each other.
A) insourcing
B) offshore outsourcing
C) nearshoring
D) co-sourcing
Q:
When a multinational corporation buys products or services from one of its suppliers that produces them somewhere else, whether domestically or globally, it is referred to as
A) offshoring.
B) insourcing.
C) outsourcing.
D) co-sourcing.
Q:
There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in global purchasing activities that are integrated across worldwide locations and functional groups?
A) Level II
B) Level III
C) Level IV
D) Level V
Q:
Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the perform group?
A) the package s ability to preserve the products to maintain their freshness or newness
B) the package s ability to provide the necessary security and safety to ensure that the products reach their end destination in their intended shape
C) the package s ability to contain the products properly
D) the ability of the product in the package to handle being transported between nodes in the global supply chain
Q:
The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposalis called
A) transportation.
B) distribution.
C) reverse logistics.
D) global sourcing.
Q:
_____ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.
A) Distribution
B) Transportation
C) Sourcing
D) Logistics
Q:
Packaging, which comes in all shapes, sizes, forms, and uses, can be divided into three different types
A) primary, secondary, and transit.
B) customer, retailer, and distributor.
C) primary, secondary, and tertiary.
D) first level, second level, and third level.
Q:
_____ is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.
A) Primary packaging
B) Performance packaging
C) Secondary packaging
D) Unit-load packaging
Q:
This type of facility positions and allows customization of products for delivery to worldwide wholesalers or retailers or directly to consumers anywhere in the world.
A) logistics center
B) lead factory
C) global distribution center
D) source factory
Q:
_____ can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.
A) Global supply chain management
B) Global inventory management
C) Global corporate management
D) Global sourcing arrangements
Q:
Cost and _____ are the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.
A) production capacity
B) assurance of continual supply
C) quality control
D) control
Q:
Make-or-buy decisions are decisions about
A) the components to be used in the manufacturing process.
B) procuring raw materials for a production process.
C) procuring the capital equipment for production.
D) whether or not to outsource value creation activities.
Q:
Which of the following situations would lead a firm to choose to decentralize production?
A) The product serves universal needs.
B) The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists.
C) Trade barriers are low.
D) The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.
Q:
Which of the following would lead a firm to choose a concentration of production?
A) Trade barriers are high.
B) Location externalities are not important.
C) Important exchange rates are expected to remain relatively stable.
D) The product s value-to-weight ratio is low.
Q:
This is where cutting-edge production should take place, or at least be tested for implementation in other parts of the firm s production network.
A) source factory
B) lead factory
C) contributor factory
D) outpost factory
Q:
_____ is often placed near a competitor s headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.
A) An outpost factory
B) A source factory
C) A contributor factory
D) A lead factory
Q:
This type of factory often with the same standards as the top factories in the global firm s system is set up to overcome intangible and tangible barriers in the global marketplace.
A) contributor factory
B) source factory
C) lead factory
D) server factory
Q:
Decentralization of production is appropriate when
A) the product s value-to-weight ratio is high.
B) location externalities are important.
C) the product serves universal needs.
D) volatility in important exchange rates is expected.
Q:
_____ makes the most sense when differences among countries in factor costs have a substantial impact on the costs of manufacturing in various countries.
A) Decentralized production
B) Just in time (JIT)
C) Concentration of production
D) Total quality management (TQM)
Q:
The idea that valuable knowledge does not reside just in a firm s domestic operations but can also be found in its foreign subsidiaries is called
A) global learning.
B) global production processes.
C) global economics.
D) global factors.
Q:
Decentralization of production is appropriate when
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.
Q:
The typical _____ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.
A) minimum efficient scale
B) flexible machine cell
C) just-in-time machine
D) assembly line
Q:
_____ implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a significant cost penalty.
A) Assembly-line production
B) Mass customization
C) Six Sigma production
D) Product standardization
Q:
Which of the following is the main concept of economies of scale?
A) Productivity declines when firms attempt to reduce costs.
B) Total costs increase as firms increase production.
C) Unit costs decrease as a plant s output expands.
D) Utilization of capital declines when firms grow in size.
Q:
Products such as refined sugar, certain bulk chemicals, paint, and petroleum products
A) cannot travel through a global supply chain.
B) have low value-to-weight ratios.
C) come from offshore factories.
D) have high value-to-weight ratios.
Q:
A flexible machine cell is
A) a component of a source factory.
B) used to perform a standardized operation.
C) a component of a lead factory.
D) a grouping of various types of machinery, a common materials handler, and a centralized cell controller.
Q:
_____ covers a range of manufacturing technologies designed to reduce setup times for complex equipment.
A) ISO 9000
B) TQM
C) Lean production
D) JIT
Q:
An advantage of a _____ allows a firm to hedge against currency risks.
A) low TQM
B) low minimum efficient scale
C) high TQM
D) high minimum efficient scale
Q:
Concentration of production is appropriate when
A) the product serves universal needs.
B) the product does not serve universal needs.
C) the product s value-to-weight ratio is low.
D) volatility in important exchange rates is expected.
Q:
When a company s product has a low value-to-weight ratio, the company should
A) acquire a shipping company and manufacture nearby.
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.
Q:
_____ is a grouping of various types of machinery, a common materials handler, and a centralized cell controller.
A) A flexible machine cell
B) A Six Sigma
C) An assembly line
D) A minimum efficient scale
Q:
_____ allows the 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.
A) Standardization
B) Kaizen
C) Six Sigma
D) Lean production
Q:
Flexible manufacturing technology is also known as
A) Six Sigma production.
B) line production.
C) standardization.
D) lean production.
Q:
According to the concept of economies of scale, as plant output expands
A) productivity declines.
B) total costs decrease.
C) unit costs decrease.
D) utilization of capital declines.
Q:
Which of the following is a characteristic of manufacturing technology that can be pivotal in deciding where to locate an international business?
A) exchange rates that govern the business
B) relative factors cost in the locality
C) availability of a skilled labor pool
D) fixed costs of setting up a production plant
Q:
At six sigmas, a production process would be highly accurate and create just
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.
Q:
Deming argued that to keep pace with changes in the workplace
A) work standards should be defined only as quotas and numbers.
B) supervision is not essential for quality improvements.
C) management should train employees in new skills.
D) products should be certified with standards such as ISO 9000.
Q:
The Six Sigma methodology
A) is used to compare and benchmark the performances of competing firms.
B) gives more importance to productivity than product quality.
C) is a direct descendant of the total quality management philosophy.
D) says that at six sigmas, there would be only 0.6 defects per million units.
Q:
Logistics is the activity that controls the
A) effective flows of physical materials through the value chain.
B) customer contact points of a business.
C) activities involved in creating a product.
D) information flows between a business and its customers.
Q:
Define just-in-time inventory. Explain why a firm might adopt the just-in-time system. Why might a firm choose a different inventory system?
Q:
Explain make-or-buy decisions by giving an example of an international business that must decide whether to outsource an activity.
Q:
Describe the concept of minimum efficient scale of output. What are the implications of minimum efficient scale?
Q:
Explain how fixed costs impact the decision to where to locate a plant.
Q:
What are the three main factors that affect the decision of where to locate production?
Q:
Define the term logistics. Compare and contrast production and logistics.
Q:
Countertrade is least attractive to large, diverse multinational enterprises.
⊚ true
⊚ false
Q:
A counterpurchase gives exporters more flexibility than an offset.
⊚ true
⊚ false
Q:
Countertrade denotes a whole range of barter-like agreements that involve trading goods and services when they cannot be traded for money.
⊚ true
⊚ false
Q:
The Foreign Credit Insurance Association is part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.
⊚ true
⊚ false
Q:
U.S. organizations can get financing aid from the Export-Import Bank.
⊚ true
⊚ false
Q:
Time drafts cannot be sold to investors at a discount from face value.
⊚ true
⊚ false
Q:
A sight draft allows for a delay in payment.
⊚ true
⊚ false
Q:
Nearly every state in the United States maintains active trade commissions to promote exports.
⊚ true
⊚ false
Q:
An export packer can advise companies who are unfamiliar with exporting on appropriate design and materials for the packaging of their items.
⊚ true
⊚ false
Q:
The Small Business Administration organizes trade events that help potential exporters make foreign contacts and explore export opportunities, held in major cities worldwide.
⊚ true
⊚ false
Q:
The most comprehensive source of information for U.S. firms on exporting opportunities is the U.S. Department of Commerce.
⊚ true
⊚ false
Q:
The Japanese sogo shosha have offices all over Japan, and companies wishing to trade with Japan must go through them.
⊚ true
⊚ false
Q:
Hiring an export management company (EMC) will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.
⊚ true
⊚ false
Q:
Exporters often face voluminous paperwork and complex formalities.
⊚ true
⊚ false
Q:
Ignorance of the potential opportunities is a huge barrier to exporting.
⊚ true
⊚ false
Q:
What is a disadvantage of countertrade?
A) Countertrade contracts may involve the exchange of unusable or poor-quality good.
B) Countertrade requires the firm to use an out-of-house trading company to which much of the profit will go.
C) Countertrade contracts often involve high-quality, expensive goods that the firm cannot move enough of to be profitable.
D) Countertrade requires employing lawyers who specialize in these unique types of contracts.
Q:
The main attraction of _____ is that it can give a firm a way to finance an export deal when other means are not available.
A) switch trading
B) counterpurchase
C) offsets
D) countertrade
Q:
_____ occurs when a third-party trading house buys the firm s counterpurchase credits and sells them to another firm that can better use them.
A) Countertrading
B) Offsetting
C) Switch trading
D) Bartering
Q:
_____ can be used when a government restricts the convertibility of its currency to preserve its foreign exchange reserves so they can be used to service international debt commitments and purchase crucial imports.
A) A buyback
B) Countertrade
C) An offset
D) Switch trading
Q:
Countertrade is
A) most attractive to small, primarily domestic enterprises.
B) least attractive to small, primarily domestic enterprises.
C) most attractive to large, diverse multinational enterprises.
D) least attractive to large, diverse multinational enterprises.
Q:
_____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant s output as partial payment for the contract.
A) A buyback
B) A barter
C) An offset
D) A switch trade
Q:
In ____, one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale, and this party can fulfill the obligation with any firm in the country to which the sale is being made.
A) a switch trade
B) an offset
C) a barter
D) a buyback
Q:
_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.
A) Counterpurchase
B) Barter
C) Offset
D) Switch trading
Q:
_____ is viewed as the most restrictive countertrade arrangement and is primarily used for onetime-only deals in transactions with trading partners who are not creditworthy or trustworthy.
A) Switch trading
B) Offset
C) Barter
D) Buyback