Question 1

W. Edward Deming believed that achieving better quality requires the commitment of everyone in a company.
A. V. Feigenbaum. Deming argued that management has the responsibility to train employees in new skills to keep pace with changes in the workplace. In addition, he believed that achieving better quality requires the commitment of everyone in the company.

Accepted Answer

A) True 
 B)False

Question 2

Describe flexible manufacturing and mass customization as important factors in location decisions.

Accepted Answer

Central to the concept of economies of s...

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true of Six Sigma?

Accepted Answer

A)  The higher the number of "sigmas," the higher the number of errors.
B)  At 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 the modern successor to ISO 9000.F) C) and E)
G) B) and D)

Question 5

Mass customization reconciles the two goals of:

Accepted Answer

A)  centralized production and long production runs.
B)  product standardization and economies of scale.
C)  high fixed costs and multiple production facilities.
D)  low cost and product customization.
E)  local responsiveness and decentralized production.F) C) and D)
G) A) and B)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of W. Edward Deming's beliefs about the total quality management philosophy?

Accepted Answer

A)  Quality of supervision should be improved by allowing more time for supervisors to work with employees.
B)  Management should embrace the philosophy that mistakes are often acceptable.
C)  Work standards should be defined only as numbers or quotas.
D)  Achieving better quality requires commitment more at the top management than at any other level.
E)  Management should create an environment in which employees will follow recommendations rather than recommend changes.F) C) and E)
G) All of the above

Question 8

Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true about firms using just-in-time (JIT)  inventory system?

Accepted Answer

A)  A company is more likely to have excess unsold inventory that it has to write off against earnings.
B)  Parts enter the manufacturing process immediately; they are not warehoused.
C)  It is difficult to spot and fix defective inputs.
D)  The amount of working capital a company needs to finance inventory increases.
E)  A firm has ample buffer stock of inventory.F) A) and B)
G) A) and C)

Question 10

Which of the following includes a grouping of various types of machinery, a common materials handler, and a computer to control the production of a family of parts or products?

Accepted Answer

A)  Specialized asset
B)  Dynamic capability
C)  Turnkey project
D)  Flexible machine cell
E)  Just-in-time inventoryF) B) and D)
G) B) and C)

Question 11

Which of the following firms should spread its production over decentralized locations?

Accepted Answer

A)  Univion Inc. operates in an industry where national differences in political economy and culture have a substantial impact on its cost of production.
B)  Saturn Inc. operates in an industry where volatile fluctuations in important exchange rates are expected.
C)  Brew Technology manufactures industrial machines and equipment that serve universal needs.
D)  Gold Dreams Inc. customizes jewelry in precious metal and stones with the aid of flexible manufacturing technologies.
E)  Uniton Inc. uses a production technology that has high fixed costs and high minimum efficient scale.F) A) and E)
G) None of the above

Question 12

Firms now typically use electronic data interchange (EDI) via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers.

Accepted Answer

A) True 
 B)False

Question 13

An important objective shared by both production and logistics functions of an international firm is to:

Accepted Answer

A)  increase profits by lowering quality.
B)  increase foreign competition.
C)  lower costs by dispersing production activities.
D)  decrease inventory turnover.
E)  stock excess inventory on hand.F) B) and E)
G) All of the above

Question 14

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 minimum efficient scaleF) A) and B)
G) A) and D)

Question 15

Currency appreciation can transform a low-cost location into a high-cost location.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true about minimum efficient scale of output?

Accepted Answer

A)  With lesser utilization of capital equipment, the chances of a firm realizing economies of scale increases.
B)  A plant must avoid operating at the minimum efficient scale of output to realize all major plant-level scale economies.
C)  When the minimum efficient scale of production is very low relative to global demand, it will be economical to manufacture a product at a single location.
D)  An advantage of a low minimum efficient scale is that it allows the firm to accommodate demands for local responsiveness.
E)  A low minimum efficient scale increases the risk of potentially adverse fluctuations in exchange rates.F) B) and E)
G) A) and D)

Question 17

What are the important strategic objectives of an international firm's production and logistics functions?

Accepted Answer

The production and logistics functions o...

Question 18

Discuss the advantages and the disadvantages of just-in-time (JIT) inventory systems.

Accepted Answer

The basic philosophy behind just-in-time...

Question 19

Industrial products have few national differences in consumer taste and preference, hence the need for local responsiveness is reduced for such products.

Accepted Answer

A) True 
 B)False

Question 20

The drawback of a just-in-time inventory system is that it:

Accepted Answer

A)  increases the total capital required by a firm.
B)  leaves a firm without a buffer stock of inventory.
C)  increases inventory holding costs, such as warehousing and storage costs.
D)  is less efficient than traditional system in spotting and fixing defective inputs.
E)  lowers a company's profitability as measured by return on capital invested.F) A) and B)
G) D) and E)

Exam 15: Global Production and Supply Chain Management

What are the important strategic objectives of an international firm's production and logistics functions?

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

Which of the following includes a grouping of various types of machinery, a common materials handler, and a computer to control the production of a family of parts or products?

Correct Answer
verified

Which of the following statements is true of Six Sigma?

Correct Answer
verified

Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software.

Correct Answer
verified

The drawback of a just-in-time inventory system is that it:

Correct Answer
verified

Firms now typically use electronic data interchange (EDI) via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers.

Correct Answer
verified

Mass customization reconciles the two goals of:

Correct Answer
verified

Which of the following statements is true about minimum efficient scale of output?

Correct Answer
verified

When is decentralization of manufacturing facilities most appropriate?

Correct Answer
verified

Which of the following is true about firms using just-in-time (JIT) inventory system?

Correct Answer
verified

Currency appreciation can transform a low-cost location into a high-cost location.

Correct Answer
verified

Which of the following is true of W. Edward Deming's beliefs about the total quality management philosophy?

Correct Answer
verified

Industrial products have few national differences in consumer taste and preference, hence the need for local responsiveness is reduced for such products.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Which of the following firms should spread its production over decentralized locations?

Correct Answer
verified

An important objective shared by both production and logistics functions of an international firm is to:

Correct Answer
verified

Describe flexible manufacturing and mass customization as important factors in location decisions.

Correct Answer
verified
Central to the concept of economies of s...
View Answer

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

Correct Answer
verified

Discuss the advantages and the disadvantages of just-in-time (JIT) inventory systems.

Correct Answer
verified
The basic philosophy behind just-in-time...
View Answer

Exam 15: Global Production and Supply Chain Management

What are the important strategic objectives of an international firm's production and logistics functions?

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

Which of the following includes a grouping of various types of machinery, a common materials handler, and a computer to control the production of a family of parts or products?

Correct AnswerverifiedShow Answer

Which of the following statements is true of Six Sigma?

Correct AnswerverifiedShow Answer

Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software.

Correct AnswerverifiedShow Answer

The drawback of a just-in-time inventory system is that it:

Correct AnswerverifiedShow Answer

Firms now typically use electronic data interchange (EDI) via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers.

Correct AnswerverifiedShow Answer

Mass customization reconciles the two goals of:

Correct AnswerverifiedShow Answer

Which of the following statements is true about minimum efficient scale of output?

Correct AnswerverifiedShow Answer

When is decentralization of manufacturing facilities most appropriate?

Correct AnswerverifiedShow Answer

Which of the following is true about firms using just-in-time (JIT) inventory system?

Correct AnswerverifiedShow Answer

Currency appreciation can transform a low-cost location into a high-cost location.

Correct AnswerverifiedShow Answer

Which of the following is true of W. Edward Deming's beliefs about the total quality management philosophy?

Correct AnswerverifiedShow Answer

Industrial products have few national differences in consumer taste and preference, hence the need for local responsiveness is reduced for such products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following firms should spread its production over decentralized locations?

Correct AnswerverifiedShow Answer

An important objective shared by both production and logistics functions of an international firm is to:

Correct AnswerverifiedShow Answer

Describe flexible manufacturing and mass customization as important factors in location decisions.

Correct AnswerverifiedCentral to the concept of economies of s...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Discuss the advantages and the disadvantages of just-in-time (JIT) inventory systems.

Correct AnswerverifiedThe basic philosophy behind just-in-time...View AnswerShow Answer

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Central to the concept of economies of s...
View Answer

Correct Answer
verified

Correct Answer
verified
The basic philosophy behind just-in-time...
View Answer