Question 1

According to the text,the level of fixed costs,the minimum efficient scale,and _____ are three characteristics of a manufacturing technology that are particularly interesting to international firms when making manufacturing location decisions.

Accepted Answer

A)  the flexibility of the technology
B)  multiple locations
C)  the decrease in machine utilization via scheduling
D)  the increase in setup times for complex equipmentE) A) and B)
F) A) and C)

Question 2

What system has a drawback that leaves a firm without a buffer stock of inventory?

Accepted Answer

A)  Total-quality management
B)  Just-in-time
C)  Management by objectives
D)  Reengineering systemE) All of the above
F) A) and D)

Question 3

In which of the following instances does concentration of production make most sense?

Accepted Answer

A)  Location externalities are not important.
B)  The production technology has low fixed costs.
C)  Important exchange rates are expected to remain relatively stable.
D)  Flexible manufacturing technology is not available.E) All of the above
F) A) and C) C

Question 4

There is an increasing trend among many U.S.companies to outsource customer care services to places such as India because _____ in those countries.

Accepted Answer

A)  there is more capital
B)  the labor costs are lower
C)  there is better technology
D)  the quality of work is superiorE) A) and C)
F) A) and D) B

Question 5

Discuss global learning.

Accepted Answer

A belief in global learning -the idea th...

Question 6

Incentive problems do not arise when the firm uses _____ suppliers.

Accepted Answer

A)  internal
B)  independent
C)  contingent
D)  domesticE) A) and B)
F) B) and C)

Question 7

The larger the minimum efficient scale of a plant relative to total global demand,the greater is the argument for:

Accepted Answer

A)  decentralizing production in multiple locations.
B)  centralizing production in a single location or a limited number of locations.
C)  achieving location economies by operating in multiple locations.
D)  centralizing production in multiple locations.E) A) and B)
F) A) and C)

Question 8

The _____ declines with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Accepted Answer

A)  component expense curve
B)  unit expense line
C)  unit cost curve
D)  component cost slopeE) A) and C)
F) B) and D) C

Question 9

_____ migration in the strategic role of foreign factories arises because many foreign factories upgrade their own capabilities.

Accepted Answer

A)  Upward
B)  Lateral
C)  Reverse
D)  DownwardE) None of the above
F) All of the above

Question 10

The term flexible manufacturing technology or _____,as it is often called-covers a range of manufacturing technologies designed to reduce setup times,increase use of individual machines through better scheduling,and improve quality control at all stages of manufacturing.

Accepted Answer

A)  kaizen
B)  lean production
C)  business process management
D)  value networkE) A) and B)
F) A) and C)

Question 11

Central to the concept of _____ is the idea that the best way to achieve high efficiency,and hence low unit costs,is through the mass production of a standardized output.

Accepted Answer

A)  lean production
B)  economies of scale
C)  mass customization
D)  outsourcingE) A) and D)
F) A) and C)

Question 12

The principal tool that most managers now use to increase the reliability of their product offering is _____,a statistically based methodology for improving product quality.

Accepted Answer

A)  Six Sigma
B)  kaizen
C)  reengineering
D)  benchmarkingE) A) and B)
F) A) and C)

Question 13

The concept of economies of scale tells us that as plant output expands,unit costs increase.

Accepted Answer

A) True 
 B)False

Question 14

Two important objectives shared by both production and logistics functions of an international firm are to simultaneously:

Accepted Answer

A)  increase quality and increase competition.
B)  increase product awareness and lower costs.
C)  lower costs and increase quality.
D)  diversify operations and increase product development.E) B) and D)
F) B) and C)

Question 15

According to the text,which is the system that allows suppliers,shippers,and the purchasing firm to communicate with each other with no time delay,thus increasing the flexibility and responsiveness of the whole global supply system?

Accepted Answer

A)  Electronic data interchange
B)  Electronic data intelligence
C)  Elastic data interchange
D)  Elastic demographic interchangeE) B) and C)
F) A) and C)

Question 16

Decentralizing production facilities in various regional or national locations that are close to major markets makes sense when trade barriers are low.

Accepted Answer

A) True 
 B)False

Question 17

Making all or part of a product in-house is referred to as:

Accepted Answer

A)  decentralization.
B)  centralization.
C)  licensing.
D)  vertical integration.E) B) and D)
F) A) and C)

Question 18

Flexible manufacturing technologies allow a 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.

Accepted Answer

A) True 
 B)False

Question 19

In general,when substantial investments in specialized assets are required to manufacture a component,a firm will:

Accepted Answer

A)  prefer to make the component internally rather than contract it out to a supplier.
B)  find an alternative method of manufacturing the component.
C)  contract out the production of the component rather than make it internally.
D)  discontinue making the product that the component goes into.E) A) and B)
F) All of the above

Question 20

The activities involved in creating a product are defined as:

Accepted Answer

A)  distribution.
B)  promotion.
C)  production.
D)  procurement.E) C) and D)
F) None of the above

Exam 14: Global Production,Outsourcing,and Logistics

According to the text,the level of fixed costs,the minimum efficient scale,and _____ are three characteristics of a manufacturing technology that are particularly interesting to international firms when making manufacturing location decisions.

Correct AnswerverifiedShow Answer

What system has a drawback that leaves a firm without a buffer stock of inventory?

Correct AnswerverifiedShow Answer

In which of the following instances does concentration of production make most sense?

Correct AnswerverifiedC

There is an increasing trend among many U.S.companies to outsource customer care services to places such as India because _____ in those countries.

Correct AnswerverifiedB

Discuss global learning.

Correct AnswerverifiedA belief in global learning -the idea th...View AnswerShow Answer

Incentive problems do not arise when the firm uses _____ suppliers.

Correct AnswerverifiedShow Answer

The larger the minimum efficient scale of a plant relative to total global demand,the greater is the argument for:

Correct AnswerverifiedShow Answer

The _____ declines with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Correct AnswerverifiedC

_____ migration in the strategic role of foreign factories arises because many foreign factories upgrade their own capabilities.

Correct AnswerverifiedShow Answer

The term flexible manufacturing technology or _____,as it is often called-covers a range of manufacturing technologies designed to reduce setup times,increase use of individual machines through better scheduling,and improve quality control at all stages of manufacturing.

Correct AnswerverifiedShow Answer

Central to the concept of _____ is the idea that the best way to achieve high efficiency,and hence low unit costs,is through the mass production of a standardized output.

Correct AnswerverifiedShow Answer

The principal tool that most managers now use to increase the reliability of their product offering is _____,a statistically based methodology for improving product quality.

Correct AnswerverifiedShow Answer

The concept of economies of scale tells us that as plant output expands,unit costs increase.

Correct AnswerverifiedShow Answer

Two important objectives shared by both production and logistics functions of an international firm are to simultaneously:

Correct AnswerverifiedShow Answer

According to the text,which is the system that allows suppliers,shippers,and the purchasing firm to communicate with each other with no time delay,thus increasing the flexibility and responsiveness of the whole global supply system?

Correct AnswerverifiedShow Answer

Decentralizing production facilities in various regional or national locations that are close to major markets makes sense when trade barriers are low.

Correct AnswerverifiedShow Answer

Making all or part of a product in-house is referred to as:

Correct AnswerverifiedShow Answer

Flexible manufacturing technologies allow a 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.

Correct AnswerverifiedShow Answer

In general,when substantial investments in specialized assets are required to manufacture a component,a firm will:

Correct AnswerverifiedShow Answer

The activities involved in creating a product are defined as:

Correct AnswerverifiedShow Answer

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C

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B

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A belief in global learning -the idea th...
View Answer

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C

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