2nd Edition Ball Test Bank Answers - International Business 2e | Test Bank with Answer Key by Geringer and McNett by Michael Geringer, Jeanne McNett, Donald Ball. DOCX document preview.
Module C Global Operations and Supply Chain Management
1) Outsourcing is hiring others to do noncore activities.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Outsourcing is hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities.
2) The process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain is called operations management.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
This is the definition of supply chain management.
3) It has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory, consistent with the prerequisites that the company's products be available when needed and at the desired level of quality and quantity.
4) Shorter and less predictable product life cycles have placed reduced emphasis on supply chains and their performance.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Shorter, less predictable product life cycles, as well as the impact of unplanned economic, political, and social events, have placed more emphasis on the achievement of effective supply chain performance.
5) The "over-the-wall" approach to product design involves an initial step in which the designers prepare the product's design, followed by sending the newly created design to the company's manufacturing engineers.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
Topic : How Globalization Affects New-Product Development
A traditional approach to product design is the "over-the-wall" approach. This takes a sequential approach to design: an initial step in which the designers prepare the product's design and then send it to the company's manufacturing engineers, who must address the production-related problems that often result from their exclusion from the initial design activity.
6) The primary reason for sourcing globally is to obtain lower prices.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
The primary reason for sourcing globally is to obtain lower prices, but there can be other reasons as well. Perhaps certain products the company requires are not available locally and must be imported. Another possibility is that the firm's foreign competitors are using components of better quality or design than those available in the home country. To be competitive, the company may have to source these components or production machinery in foreign countries.
7) Companies engage in outsourcing when they make the decision to source internationally.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Difficulty : 3 Hard
The term offshoring describes a company's decision to relocate some or all of its activities or processes to a foreign location. Outsourcing involves hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities domestically. A firm can move activities offshore to a location that is part of the company, which means it can be offshore without being outsourced.
8) It is better for companies to initially outsource complex activities to achieve better cost benefits.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
When possible, it is better for companies to initially outsource simple activities and gradually outsource more complex activities as both the outsourcer and the service provider gain experience.
9) The purchasing of goods and services that are part of finished goods—termed indirect procurement—is critical.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
While direct production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are not part of finished goods—termed indirect procurement—is also critical.
10) For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "business cycle costing" to analyze purchasing decisions.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "life cycle costing" to analyze purchasing decisions.
11) International freight, insurance, and packing can add as much as 25 to 30 percent to the quoted price.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
International freight, insurance, and packing can add as much as 10 to 12 percent to the quoted price, depending on the sales term used.
12) For just-in-time (JIT) to be successful, manufacturers have to have the cooperation of their suppliers.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
For JIT to be successful, manufacturers have to have the cooperation of their suppliers.
13) Total quality management is a companywide management approach to ensure quality products throughout the organization.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Total quality management is a companywide management approach in which the entire organization is managed so that it excels on all dimensions of product and services that are important to the customer.
14) Synchronous production, also called the theory of constraints, is superior to the just-in-time production system because it is a balanced system in which the capacities of all operations are equal.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Synchronous manufacturing, also called the theory of constraints (TOC), is an entire manufacturing system with unbalanced operations that emphasizes total system performance.
15) Mass customization is usually appropriate in situations where there is the potential for delaying the task of differentiating the product for a particular customer until the last possible point in the supply network.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Mass customization is usually appropriate in situations where it is feasible to delay differentiating the product for a particular customer until the last possible point in the supply network.
16) Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Logistics refers to managerial functions associated with the movement of raw materials, work in progress, and finished goods.
17) Standards are documented agreements containing flexible general guidelines, rules, or definitions of the characteristics of a product, process, or service.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Standards are documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service.
18) When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
When production equipment is similar, home office control of quality in foreign affiliates is less difficult because management can expect all plants adhere to the same standard.
19) Generally, it is easier for international firms to standardize the concepts of total quality management and synchronous manufacturing in their foreign plants than it is to standardize the actual production facilities.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Generally, it is easier for international companies to standardize concepts such as total quality management and synchronous manufacturing in their overseas affiliates than it is to standardize the actual manufacturing facilities.
20) Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Backward integration is an arrangement in which facilities are established to manufacture inputs used in the production of a firm's final products. That is, manufacturing capacity to produce essential inputs will be included in the plant design even though it would be preferable from an economic standpoint to purchase those materials from outside vendors.
21) Prada's employees were overwhelmed with work, so she sent some accounting functions to India and kept the rest in-house. Prada was engaging in
A) offshoring.
B) outsourcing.
C) supply chain management.
D) subcontracting.
Question Details
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
As stated directly in the text, outsourcing is hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities.
22) Belmont's job was to coordinate the flow of materials and services within and among companies in the value chain from the company's suppliers to the consumer. Belmont worked in the area of
A) offshoring.
B) international strategy.
C) outsourcing.
D) supply chain management.
Question Details
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
The process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain from suppliers to the ultimate consumer is often referred to as supply chain management.
23) Activities involved in producing a company's products and services and the way in which these activities are linked together are called
A) value chains.
B) supply chains.
C) operations management.
D) logistics.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Supply chain refers to the activities required to produce a company's products and services and the way these activities are linked together.
24) It has been argued that the ultimate goal of effective supply chain management systems is to
A) reduce costs.
B) improve quality.
C) reduce inventory.
D) increase sales.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory, consistent with the prerequisites that the company's products be available when needed and at the desired level of quality and quantity.
25) Which of these measures would typically be used in measuring supply chain performance?
A) salesperson turnover
B) orders delivered on time
C) website click-through rate
D) advertising results
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Typical measures include such metrics as the number of times inventory turns over in a year, the ratio of in-stock inventory versus the level of sales, the percentage of orders delivered on time, the level of defects per million, the proportion of orders fulfilled perfectly, and the number of orders that are unable to be filled due to stockouts.
26) How does Starbucks adapt the design of its stores to local conditions in China?
A) large tables and movable furniture
B) a bar design to encourage people to drink their coffee and leave to make room for the next person
C) decorations reminiscent of prior periods in Chinese history
D) covered outdoor areas for escaping the heat
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
In China, Starbucks uses large community tables and movable furniture, since it is common for large groups to visit coffee shops together and linger for hours.
27) Using cross-functional and customer participation in the design stage is a type of ________ engineering.
A) concurrent
B) parallel
C) nontraditional
D) sourced
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
An alternative approach to design is to promote cross-functional participation in the design stage, thereby identifying and avoiding much potential sourcing, manufacturing, and other difficulties. Many companies also pull key customers into their design activities. Using this type of concurrent engineering approach allows the proposed designs to undergo earlier assessments on cost, quality, and manufacturability dimensions, thereby enhancing the efficiency and effectiveness of subsequent manufacturing and supply chain management activities.
28) A traditional approach to product design that involves a sequential approach to design is
A) product-based design.
B) concurrent engineering.
C) over the wall.
D) participatory design.
Question Details
AACSB : Reflective Thinking
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
A traditional approach to product design is the "over the wall" approach. This takes a sequential approach to design.
29) A recent design process innovation, such as Dell's IdeaStorm site or Starbucks's MyStarbucksIdea.com site, involves
A) participating of designers with representatives of suppliers.
B) conducting many iterative cycles of design and testing.
C) selling products that have been produced in lot sizes of one.
D) encouraging very broad input, including from general customers.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Difficulty : 1 Easy
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
A recent design process innovation is to solicit very broad input, increasingly from general customers. Examples include Dell's IdeaStorm site and Starbucks's suggestion site. Within a week of Starbucks's opening of its MyStarbucksIdea.com site, more than 100,000 votes had been cast for various improvement ideas.
30) Apple makes use of factories in other countries to supply parts for its phones. This refers to
A) offshoring.
B) a joint venture.
C) product diversity.
D) subcontracting.
Question Details
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
The term offshoring describes a company's decision to relocate some or all of its activities or processes to a foreign location.
31) Joe's Jumpers has always made its clothing in the United States, but as prices have gotten more competitive it has had to move some of its production to China. This demonstrates
A) production transfer.
B) offshoring.
C) price control.
D) broadening the supply chain.
Question Details
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
The term offshoring describes a company's decision to relocate some or all of its activities or processes to a foreign location.
32) Outsourcing has become an increasingly common option for companies because it
A) helps companies to focus scarce resources away from their core competencies.
B) avoids problems of different languages or cultures.
C) enhances flexibility and improves speed of response.
D) increases capital investments.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Outsourcing has become an increasingly common option for companies as they try to focus scarce resources on their core capabilities and leverage the skills of other companies to reduce costs and capital investments, improve flexibility and speed of response, enhance quality, and provide other strategic benefits.
33) Which activity represents an extension of the make-or-buy decisions of earlier eras?
A) total quality management
B) JIT
C) offshoring
D) outsourcing
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Outsourcing decisions, including the decision to use global sources of supply, are extensions of the make-or-buy decisions of earlier eras.
34) Standardized operations that require low-skilled labor sometimes move their production away from industrialized countries to locations where
A) raw materials are readily available.
B) labor is less expensive.
C) equipment is easily replicated.
D) final product can be more easily transported.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Many relatively standardized and labor-intensive operations (such as the assembly of athletic shoes or men’s casual shirts) have moved away from the more industrialized countries, where labor is more expensive, to more cost-effective locations in the developing areas of the world.
35) Which arrangement can provide a firm with foreign products?
A) domestic subsidiary
B) wholly owned subsidiary
C) foreign sales office
D) home country production facilities
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Any of the following sourcing arrangements can provide a firm with foreign products: wholly owned subsidiary, overseas joint venture, in-bond plant contractor, overseas independent contractor, or independent overseas manufacturer.
36) Which is a description of the sourcing arrangement overseas joint venture?
A) A firm has no production facilities and contracts with foreign manufacturers to make clothing to their specifications.
B) A company contracts with an independent manufacturer in another country to provide it with products, often designed by the overseas manufacturer.
C) Production plant in the home country or another nation sends components to be machined and assembled, or just to be assembled, by an independent contractor in an in-bond plant.
D) Established where labor costs are lower, or quality higher, than in the home country to supply components or other inputs to the home country.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
An overseas joint venture is established where labor costs are lower, or quality higher, than in the home country to supply components or other inputs to the home country.
37) Which sourcing arrangement may be established in a country with low-cost labor to supply components to the home-country plant, or the subsidiary may produce a product that either is not made in the home country or is of higher quality?
A) wholly owned subsidiary
B) overseas joint venture
C) overseas plant contractor
D) independent overseas manufacturer
Question Details
AACSB : Reflective Thinking
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
This describes a wholly owned subsidiary.
38) Which sourcing arrangement is common in the clothing industry?
A) wholly owned subsidiary
B) overseas joint venture
C) overseas independent contractor
D) independent overseas manufacturer
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Overseas independent contractors are common in the clothing industry, in which firms with no production facilities, such as DKNY, Nike, and Liz Claiborne, contract with foreign manufacturers to make clothing to their specifications and with their labels.
39) Which sourcing arrangement occurs when a company contracts with an independent manufacturer in another country to provide it with products, often designed by the overseas manufacturer?
A) wholly owned subsidiary
B) overseas joint venture
C) overseas independent contractor
D) independent overseas manufacturer
Question Details
AACSB : Reflective Thinking
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
The overseas independent manufacturer sourcing arrangement occurs when a company contracts with an independent manufacturer in another country to provide it with products, often designed by the overseas manufacturer.
40) Trade that occurs between a parent company and its foreign affiliates is called
A) foreign trade.
B) intrafirm trade.
C) industry trade.
D) interfirm trade.
Question Details
AACSB : Reflective Thinking
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Intrafirm trade is trade that occurs between a parent company and its foreign affiliates.
41) What is a reason the proportion of externally produced materials relative to the cost of goods sold is increasing?
A) greater complexity of products
B) lack of qualified employees domestically
C) lack of new products
D) slowing market changes
Question Details
AACSB : Reflective Thinking
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
In U.S. industry, the proportion of externally purchased materials in the overall cost of goods sold has been rising for several decades. There are several reasons for this, including greater complexity of products and increasing pressure for firms to focus on their core business and outsource other activities in which they lack strong competitive ability.
42) As Corrine's business grew, it struggled to keep up with the maintenance and repair of her products, so she started buying these services from another company. This is called
A) direct purchasing.
B) domestic sourcing
C) indirect procurement.
D) insourcing.
Question Details
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Indirect procurement is sometimes used for items such as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for 50 to 70 percent of the total purchasing expenditures in an average company.
43) The purchasing of goods and services that are not part of finished goods is called
A) overhead.
B) indirect procurement.
C) peripheral purchasing.
D) e-procurement.
Question Details
AACSB : Reflective Thinking
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
The purchasing of goods and services that are not part of finished goods is called indirect procurement.
44) Which item or service is least likely to be included within indirect procurement?
A) maintenance
B) office equipment
C) repair
D) components
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Such items as maintenance, repair, operating supplies, office equipment, and other services and supplies are part of indirect procurement.
45) Electronic procurement exchanges can
A) facilitate efforts to obtain equity investments.
B) permit bid/quote systems for buyers and suppliers.
C) protect companies from potential loss of proprietary data.
D) prevent exposure to exchange rate fluctuations.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Electronic exchanges can permit buyers and suppliers to interact through a standard bid/quote system in which buyers can post their purchasing needs online for all prospective suppliers to view and the suppliers can then submit private quotes to the buyer.
46) Industry-based B2B exchanges can create value with
A) increased backward integration.
B) exposure to exchange rate fluctuations.
C) optimized supply chains across an entire network of organizations.
D) increased barriers to entry for international market opportunities.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Emerging industry-based business-to-business (B2B) exchanges can help optimize the supply chain across an entire network of organizations, not merely within a single company.
47) Which item is least likely to be a cost of importing for a company?
A) reworking of products that do not meet specifications
B) an international sales force
C) transit inventory
D) cost of letter of credit
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
All of these are common costs of importing except the international sales force.
48) If a firm has a large volume of imports and the dollar is unstable, management may want a quotation in a foreign currency. In that case, the chief financial officer of the importing company probably will protect the company from exchange rate risk by using various financial ________ techniques.
A) manipulation
B) devaluation
C) hedging
D) escalation
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Hedging has been used for many years by companies that operate internationally, particularly if their raw materials include one or more of the commodities traded on established commodities markets. In most cases, such hedging has been done not for speculative reasons but as a means of protecting the company from the risk of rapid price fluctuations.
49) Why did many early efforts at developing e-procurement systems fail?
A) They were made by people without the necessary technological background.
B) They were made by people without the necessary procurement background.
C) Too many people were involved, resulting in a jumble of features.
D) They were made in isolation from the company's overall business system.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Many early efforts at developing e-procurement systems were made in isolation and subsequently failed to deliver on their potential.
50) Automobiles, Inc. implemented B2B electronic commerce, but it ran into a problem when one of its suppliers accidentally leaked the details of its pricing and inventory to a competitor. What did Automobiles, Inc. fail to consider?
A) cost
B) country standards
C) security
D) governmental regulations
Question Details
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Security is often a significant concern for e-procurement. For B2B electronic commerce to achieve its full potential, access to the company’s internal systems from outside is critical.
51) A just-in-time supply chain requires
A) advance scheduling of orders.
B) materials and parts to arrive at each point in the production process when they are needed.
C) parts and materials to arrive at a manufacturing plant at least one month in advance to avoid "stockouts."
D) an inventory of finished goods to fill orders as they come in.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Parts and components have to be delivered to each point in the production process at the time they are needed, hence the name.
52) What is a downside of flexible manufacturing?
A) Changes are made slowly.
B) Changes in the production line cost money.
C) The company receives more, smaller orders.
D) Suppliers are not involved.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Flexible manufacturing allows product changes to be made rapidly, but each change in the production line still costs money. Therefore, many manufacturers have chosen to simplify product lines and design the products to use as many of the same parts as possible.
53) "Little JIT" refers to
A) reducing the size of the production facility to make it more manageable.
B) narrowing the focus to the management of goods inventories.
C) working with designers, production managers, and marketers to simplify product design.
D) lean production.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Many manufacturers that attempted to transform their operations by adopting JIT principles mistakenly incorporated only one part of JIT: the narrow focus on managing goods inventories, sometimes called "little JIT."
54) To improve quality, everyone in the organization has to be committed to quality. This has led to the creation of ________, a companywide management approach.
A) total quality management
B) ISO 9000
C) Six Sigma
D) synchronous management
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
To improve quality, everyone in the organization—from top management to workers—has to be committed to quality. This realization has led to the creation of total quality management (TQM), a companywide management approach.
55) Quality circles meet to discuss ways to improve
A) production speed.
B) their functional areas.
C) product quantity.
D) pricing.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
A quality circle is a small work group that meets to discuss ways to improve its functional areas and the quality of the product.
56) Quality circles are commonly led by
A) an outside consultant specializing in management.
B) a middle manager in the sales department.
C) a department head in production.
D) an employee trained in quality control techniques.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
The quality circle is commonly led by an employee who has received training in quality control techniques.
57) Eiko and her customer service group felt they needed better communication because their team seemed to be going in many directions. They decided to meet weekly to discuss how to improve the department's functional capabilities so they could better service their customers. This is an example of
A) a quality circle.
B) total quality service.
C) lean communication.
D) total system performance.
Question Details
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
A quality circle is a small work group that meets periodically to independently discuss ways to enhance the quality of the company’s product or service.
58) An entire manufacturing system with unbalanced operations that emphasizes total system performance is
A) JIT.
B) quality circles.
C) synchronous manufacturing.
D) concurrent engineering.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
An entire manufacturing system with unbalanced operations that emphasizes total system performance is synchronous manufacturing.
59) ________ is a scheduling and manufacturing control system that seeks to locate and then eliminate or minimize any constraints to greater production output.
A) Synchronous manufacturing
B) JIT
C) TQM
D) E-procurement
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Synchronous manufacturing is a scheduling and manufacturing control system that seeks to locate and then eliminate or minimize any constraints to greater production output, such as machines, people, tools, and facilities.
60) Total quality management is
A) the control of quality in all dimensions of product and services.
B) a process in which quality control is focused on the production of the firm's products.
C) the control of quality in all functional areas of the firm.
D) adoption of concurrent engineering principles in product design.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
A companywide management approach in which the entire organization is managed so that it excels on all dimensions of product and services that are important to the customer.
61) Many American manufacturers made the mistake of rushing to copy parts of Japan's just-in-time production system without realizing that
A) cultural differences between Japanese and Westerners would prevent the system from being transferred effectively.
B) the American legal system and approach to unionization would not permit its successful adoption.
C) it is a total system that focuses on management of people, materials, and relationships inside the company and with suppliers.
D) it was patented by Japan.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Many manufacturers failed to realize that JIT is a total system covering the management of people, materials, and relationships both inside the company and with suppliers. Moreover, many did not understand that JIT requires a thorough and companywide commitment to managing quality, of which continuous improvement is an integral part.
62) The output of a synchronized manufacturing system is set
A) at the capacity of the operation with the highest output.
B) at the output of the slowest operation that is working at full capacity.
C) at the level that permits the system to be balanced.
D) so that all production operations can produce the same amount to eliminate stockpiling.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
The system's output is determined by and limited to the output of the slowest operation, or bottleneck, that is working at full capacity.
63) A ________ is the name given to an operation in a synchronous manufacturing system whose output sets the limit for the entire system's output.
A) limiting point
B) strangle point
C) bottleneck
D) critical operation
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
A bottleneck is the name given to an operation in a synchronous manufacturing system whose output sets the limit for the entire system's output.
64) In synchronous manufacturing, a production increase at the bottleneck means an increase
A) in that machine's idle time.
B) for the entire production system.
C) in unwanted inventory.
D) in work stoppage.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
A production increase at the bottleneck means an increase for the entire production system; an increase in a non-bottleneck operation adds to only that machine’s idle time.
65) Mass customization is
A) a company's use of standardized production systems to produce and deliver products and services.
B) usually appropriate in situations where there is the limited potential for differentiating a product for a particular customer.
C) a system that typically requires the company to reconceptualize the design of its products as well as the design and integration of the processes used.
D) also known as lean production.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Mass customization is usually appropriate in situations where it is feasible to delay differentiating the product for a particular customer until the last possible point in the supply network. This typically requires that the company reconceptualize the design of its product as well as the design and integration of the processes used for producing and delivering the product to customers.
66) Six Sigma is a management process that focuses on
A) reducing defects and eliminating variation.
B) reducing employee turnover.
C) improving communication between departments.
D) customizing product.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Six Sigma is a business management process for reducing defects and eliminating variation.
67) What commonly results from implementation of Six Sigma?
A) Defects temporarily go up.
B) Costs go down but cycle time goes up.
C) Customer satisfaction goes up.
D) Product quality goes down.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Six Sigma concentrates on eliminating variation and reducing defects from work processes, and as defects go down, so do costs and cycle time, while customer satisfaction goes up.
68) The Six Sigma approach includes five steps: define, measure, analyze, improve, and
A) document.
B) control.
C) report.
D) verify.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
The Six Sigma approach includes five steps: define, measure, analyze, improve, and control.
69) Projects selected for Six Sigma should be completed in
A) 4 to 6 weeks.
B) 3 to 6 months.
C) 6 to 12 months.
D) 1 to 2 years.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Projects should also be able to be completed within about 3 to 6 months (or be divided into subprojects of such duration), in order to maintain progress and company interest.
70) In Six Sigma, project leaders are called
A) Black Belts.
B) Green Berets.
C) Master Black Belts.
D) White Knights.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Project leaders are called “Black Belts” (BBs) and are typically individuals with a history of accomplishment and significant experience.
71) The biggest advantage of Six Sigma among organizations using the methodology is
A) improved productivity.
B) quick results.
C) organizational buy-in.
D) cost savings.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
The biggest advantage of Six Sigma is increased cost savings, although the techniques are also associated with increased customer satisfaction, reduced defects, increased company growth, and increased quality.
72) Frank is responsible for getting raw materials to sites where they can be used to produce the finished goods. Frank works in the area of
A) standards.
B) processes.
C) logistics.
D) value chains.
Question Details
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Bloom's : Apply
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods are known as logistics.
73) FedEx allows a company to arrange pickups and then monitor the status of each item being transported. This demonstrates the concept of
A) facility management.
B) customer value chain.
C) subcontracting.
D) logistics.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Global logistics companies such as FedEx, DHL, and UPS have developed expertise in handling and tracking materials within and across nations, including sophisticated computer technology and systems for tracking shipments. FedEx’s website allows a company to arrange pickups and then monitor the status of each item being transported.
74) Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service are
A) standards.
B) processes.
C) logistics.
D) value chains.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service are known as standards.
75) ISO 9000 is used
A) as the standard most used for quality in the United States.
B) as a set of five universal standards for a quality assurance system agreed to by the International Organization for Standardization (ISO).
C) to ensure product quantity meets demand.
D) to guarantee the performance of suppliers.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
In Europe, the most popular standard for quality is the ISO 9000 collection. This is a set of universal standards for a quality-assurance system that has been agreed to by the International Organization for Standardization (ISO), a federation of standards bodies from 165 countries.
76) The ISO has developed the ISO 1400 for managing ________ issues.
A) product cost
B) employee engagement
C) environmental
D) customer complaint
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
The ISO has developed the ISO 1400 series of standards for managing environmental issues.
77) Intel, a supplier of semiconductor memory products and related computer components, introduced an approach to standardization of its factories called
A) Global Consistency.
B) Intel Inside.
C) Copy Exactly.
D) Intel-ization.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Intel, the worldwide leader in supplying semiconductor memory products and related computer components, introduced an approach called "Copy Exactly" for achieving standardization in its factories.
78) Companies whose manufacturing processes are not unified have found that a current separate set of specifications for each affiliate
A) is costly and error-prone.
B) results in higher turnover among employees.
C) slows the delivery of raw materials.
D) results in more accurate processes.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Companies whose manufacturing processes are not unified have found that a current separate set of specifications for each of 15 or 20 affiliates is both more costly to maintain and more error-prone.
79) Manufacturing rationalization is
A) the allocation of scarce resources among various production plants.
B) the division of production among several units so that each produces only a limited number of components for all assembly plants.
C) the concentration of production at one site to get economies of scale.
D) the production by a subsidiary for its own national market.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Manufacturing rationalization divides production among a number of production units, thus enabling each to produce only a limited number of components for all of a firm’s assembly plants.
80) What is a benefit of global standardization of operations?
A) It eliminates the task of maintenance and production control.
B) It allows home office personnel to quickly spot deviations from the norm.
C) It enables reasonably accurate forecasts of time required to obtain permits and erect plants.
D) It enables subsidiaries to respond effectively to demands of host country governments.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Topic : The Global Strategic Planning Process
Global standardization of operations allows home office personnel to quickly spot deviations from the norm.
81) When a new plant can be built that is a duplicate of others already functioning,
A) labor trainers experienced in the operation of the machinery can be sent to the new locations without undergoing any training.
B) costs will be the same as in existing locations.
C) vendors will be requested to furnish equipment that they have supplied previously.
D) manufacturing specifications from the technical department still require alterations.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Topic : The Global Strategic Planning Process
When a new plant can be a duplicate of others already functioning, the planning and design will be both simpler and quicker because they are essentially a repetition of work already done. For example, vendors will be requested to furnish equipment they have supplied previously.
82) Some companies in industrialized countries are using ________, which can reduce the batch quantity to one and facilitate the potential for mass customization.
A) Six Sigma
B) computer-integrated manufacturing
C) manufacturing rationalization
D) standardized logistics
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Topic : The Global Strategic Planning Process
CIM reduces the economic batch quantity—the minimum number of a part that can be made economically by a factory—to one. As a result, it facilitates the potential for mass customization that we discussed earlier in this module.
83) Backward vertical integration refers to
A) the purchase of competitive firms.
B) the installation of production facilities to produce inputs for the production of final products.
C) the placing of minorities in charge of production processes.
D) the installation of production facilities to consume the outputs of the production system.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Backward vertical integration refers to the installation of production facilities to produce inputs for the production of final products.
84) The most important element of the economic forces that impede production standardization is the
A) legal system in place and its protection of private property.
B) wide range of market sizes.
C) level of GDP per capita.
D) skill level of labor.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
The most important element of the economic forces that impede production standardization is the wide range of market sizes.
85) When designing production facilities, designers generally find that
A) automated machinery enables a high level of flexibility regarding product variety and sizes.
B) general-purpose machines require a more narrow range of skills than might be necessary for a special-purpose machine.
C) they have to choose between low-output specialized machinery and higher-output, general-purpose machines.
D) computer-integrated manufacturing (CIM) systems permit economic batch quantity to be reduced to one.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
CIM systems enable a machine to make one part as easily as another in random order on an instruction from a bar code reader of the kind used in supermarkets. This reduces the economic batch quantity—the minimum number of a part that can be made economically by a factory—to one.
86) Skilled operators in developing countries could be trained in technical schools, but the low prestige of such employment affects both the demand for and the supply of vocational education. This represents how ________ forces can impact manufacturing.
A) economic
B) cultural
C) political
D) psychological
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
These operators could be trained in technical schools, but the low prestige of such employment, a cultural characteristic, affects both the demand for and the supply of vocational education.
87) The local manufacturing organization is commonly a ________ version of that found in the parent company.
A) scaled-down
B) fundamentally different
C) identical
D) scaled-up
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
The local manufacturing organization is commonly a scaled-down version of that found in the parent company.
88) Intermediate technology is
A) production methods between the capital- and labor-intensive processes.
B) synonymous with necessary technology.
C) older technology previously used by multinationals.
D) lean production.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Intermediate technology is production methods between the capital- and labor-intensive processes.
89) Sometimes called additive manufacturing, ________ creates a product by methodically adding material in a layer-by-layer manner.
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : C-01 Explain the concept of supply chain management.
Sometimes called additive manufacturing, 3D printing uses a digital blueprint as a guide for creating a final product, "printing" the product by methodically adding material in a layer-by-layer manner.
90) Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform these activities, is called ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform these activities, is called outsourcing.
91) The process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain is called ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
The process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain is called supply chain management.
92) The ________ of a company's products and services has a fundamental relationship with the types of inputs that the company will require, including labor, materials, information, and financing.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
The design of a company's products and services has a fundamental relationship with the types of inputs that the company will require, including labor, materials, information, and financing.
93) ________ is the relocation of some or all of a business's activities or processes to a foreign location.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Offshoring is the relocation of some or all of a business's activities or processes to a foreign location.
94) Outsourcing overseas is often called ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Outsourcing overseas is often called offshore outsourcing.
95) Any part of the ________ chain can be outsourced, including product design, raw material or component supply, manufacturing or assembly, logistics, distribution, marketing, sales, service, human resources, or other activities.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Any part of the value chain can be outsourced, including product design, raw material or component supply, manufacturing or assembly, logistics, distribution, marketing, sales, service, human resources, or other activities.
96) Outsourcing decisions, including the decision to use global sources of supply, are extensions of the ________ decisions of earlier eras.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Outsourcing decisions, including the decision to use global sources of supply, are extensions of the make-or-buy decisions of earlier eras.
97) In U.S. industry, the proportion of externally purchased materials in the overall cost of goods sold has been ________ for several decades.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
In U.S. industry, the proportion of externally purchased materials in the overall cost of goods sold has been rising for several decades.
98) While direct production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are not part of finished goods, termed ________, is also critical.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Although direct production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are not part of finished goods, termed indirect procurement, is also critical.
99) For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use ________ costing to analyze purchasing decisions.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use life cycle costing to analyze purchasing decisions through the life of the purchased item, including trade-in or future estimated salvage value.
100) It is essential that global sourcing decisions be closely linked to the organization's ________ and that explicit objectives for suppliers be defined and incorporated in contracts.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
It is essential that global sourcing decisions be closely linked to the organization's strategy and that explicit objectives for suppliers (such as delivery times and cost objectives) be defined and incorporated in contracts, ideally with incentives for meeting or exceeding them.
101) A balanced system in which there is little or no delay time and idle in-process and finished inventory is called ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
A balanced system in which there is little or no delay time and idle in-process and finished inventory is called just-in-time.
102) ________ JIT involves a narrow focus on managing goods inventories.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Little JIT involves a narrow focus on managing goods inventories. This approach has been problematic for many companies who they failed to realize that what is important is "big JIT," a total system covering the management of people, materials, and relationships with suppliers (this total system is also called lean production). Moreover, many did not understand that JIT requires a thorough and companywide commitment to managing quality, of which continuous improvement is an integral part.
103) ________ manufacturing is an entire manufacturing process with unbalanced operations that emphasizes total system performance.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Synchronous manufacturing is an entire manufacturing process with unbalanced operations that emphasizes total system performance.
104) Synchronous manufacturing is also called the theory of ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Synchronous manufacturing is also called the theory of constraints.
105) Unlike JIT, in which the capacities of all operations are equal, synchronous manufacturing aims to balance the product flow through the system, which leaves output levels of the various operations ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Unlike JIT, in which the capacities of all operations are equal, synchronous manufacturing aims to balance the product flow through the system, which leaves output levels of the various operations unbalanced.
106) A production increase at the bottleneck means an increase for the entire production system; an increase in a non-bottleneck operation adds to only that machine's ________ time.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
A production increase at the bottleneck means an increase for the entire production system; an increase in a non-bottleneck operation adds to only that machine's idle time.
107) The use of flexible, usually computer-aided manufacturing systems to produce and deliver customized products and services for different customers worldwide is known as ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
The use of flexible, usually computer-aided manufacturing systems to produce and deliver customized products and services for different customers worldwide is known as mass customization.
108) There are four basic approaches to mass customization: (1) collaborative; (2) ________; (3) ________; and (4) transparent.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
There are four basic approaches to mass customization: (1) collaborative—a company helps customers choose the required product features; (2) adaptive—the company offers a standard product that users can modify themselves; (3) cosmetic—only the product's presentation is customized, such as packaging or color; and (4) transparent—customers are provided with individualized product or service offerings without their knowing it, such as on website interfaces.
109) ________ is a business management process for reducing defects and eliminating variation that combines rigorous analytical tools with a well-defined infrastructure and leadership from the top in order to solve problems and optimize processes.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-04 Explain why manufacturing systems and logistical elements may vary, even within the same company.
Topic : The Importance of Production and Logistics Decisions
Six Sigma is a business management process for reducing defects and eliminating variation that combines rigorous analytical tools with a well-defined infrastructure and leadership from the top in order to solve problems and optimize processes.
110) Manufacturing ________ is the division of production among a number of production units.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Manufacturing rationalization is the division of production among a number of production units.
111) ________ vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.
112) Production methods between capital- and labor-intensive methods are classified as ________.
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Topic : The Importance of Production and Logistics Decisions
Learning Objective : C-05 Explain the potential in, and challenges to, global standardization of production processes and procedures.
Production methods between capital- and labor-intensive methods are classified as intermediate technology.
113) What is supply chain management and why is it an important issue for a company's international competitiveness?
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Accessibility : Keyboard Navigation
Learning Objective : C-01 Explain the concept of supply chain management.
Topic : Supply Chain Management
114) Why is the design of products and services important to global supply chain management and what are the main design alternatives that are available?
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Learning Objective : C-02 Discuss the relationship between design and supply chain management.
115) What are the benefits of global sourcing?
Question Details
AACSB : Reflective Thinking
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
116) Differentiate between the five sourcing arrangements that can provide a firm with foreign products.
Question Details
AACSB : Reflective Thinking
Difficulty : 2 Medium
Learning Objective : C-03 Describe the reasons for sourcing globally, the five global sourcing arrangements, and the benefits and challenges of global sourcing.
Topic : Global Sourcing and Supply Chain Management
Accessibility : Keyboard Navigation
Bloom's : Analyze
Document Information
Connected Book
International Business 2e | Test Bank with Answer Key by Geringer and McNett
By Michael Geringer, Jeanne McNett, Donald Ball