Question 1

Based on the information provided, which of these firms should concentrate its production in a centralized location?

Accepted Answer

A)   Mercury Inc. operates in an industry where the fixed costs are high, and services of supporting industries are of prime importance.
B)   In-the-Now Inc. manufactures products like apparel and cosmetics for which national differences in consumer taste and preference are wide.
C)   QuickFloors Inc. operates in an economy where volatile fluctuations in exchange rates are frequently expected.
D)   Down-to-Earth Corp. is a mining company that exports quartz-a product with low value-to-weight ratio-to various countries.
E)   Bronze Inc. customizes heavy machines without the use of flexible manufacturing technologies.F) B) and E)
G) None of the above

Question 2

What are some automobile companies doing in situations where neither centralization nor decentralization of production is feasible?

Accepted Answer

A)   outsourcing production to developing countries
B)   inshoring production into the home country
C)   selling product patents and technology to competitors
D)   refraining from international trade
E)   establishing top-to-bottom manufacturing operationsF) A) and E)
G) C) and D)

Question 3

Producing a standardized product in large volumes will

Accepted Answer

A)   result in diseconomies of scale.
B)   increase production efficiency.
C)   increase production costs.
D)   result in shorter production runs.
E)   result in a high minimum efficient scale of output.F) A) and E)
G) A) and D)

Question 4

One problem with a mass production system is that it

Accepted Answer

A)   results in short production runs.
B)   fails to realize economies of scale.
C)   reduces the number of defects and eliminates waste.
D)   helps to accommodate consumer preferences for product diversity.
E)   creates massive inventories that have to be stored in large warehouses.F) A) and B)
G) B) and E)

Question 5

Two product features impact location decisions. Which of the two reduces the need for local responsiveness?

Accepted Answer

A)   product's ability to serve universal needs
B)   product's life cycle
C)   product's packaging
D)   product's flexible manufacturing technology
E)   product's value-to-weight ratioF) None of the above
G) A) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When applying the Six Sigma approach, the lower the number of "sigmas," the greater the number of errors.

Accepted Answer

A) True 
 B)False

Question 8

During a planning meeting, the environmental team discusses how returned items should be disposed of or recycled. What aspect of the global supply chain are they discussing?

Accepted Answer

A)   reverse logistics
B)   geographic location
C)   mass customization
D)   flexible machine cells
E)   consumer tastesF) A) and B)
G) A) and C)

Question 9

Production and supply chain functions must be able to accommodate demands for local responsiveness. Explain where these demands originate and how a company can accommodate these demands.

Accepted Answer

Production and logistics functions must ...

Question 10

What term refers to the production of a variety of end products at a unit cost that could once be achieved only through bulk production of a standardized output?

Accepted Answer

A)   decentralization of production
B)   just-in-time inventory
C)   mass customization
D)   economies of scale
E)   minimum efficient scaleF) None of the above
G) A) and B)

Question 11

________ is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company.

Accepted Answer

A)   ISO 9000
B)   Just-in-time
C)   Six Sigma
D)   Lean production
E)   UpstreamingF) D) and E)
G) B) and E)

Question 12

Products with high value-to-weight ratios tend to

Accepted Answer

A)   be expensive to transport.
B)   increase in weight after processing.
C)   be restricted under trade barriers.
D)   be expensive and not weigh very much.
E)   have a low inventory turnover.F) B) and D)
G) B) and C)

Question 13

Ride Inc., a manufacturer of car components, wants to set up a system that will send invoices to its customers once orders for input supply are placed. What should the company use to perform this function?

Accepted Answer

A)   computer-aided design system
B)   lean production
C)   just-in-time inventory system
D)   electronic data interchange
E)   social networkingF) All of the above
G) B) and D)

Question 14

When manufacturing a product that serves universal needs, a company should remember that it

Accepted Answer

A)   becomes necessary to customize the product to suit small consumer groups.
B)   becomes necessary to accommodate demands for local responsiveness.
C)   increases the attractiveness of concentrating production at an optimal location.
D)   is difficult to serve national differences in consumer taste and preference.
E)   is always attractive to globally disperse production to all major markets.F) None of the above
G) B) and D)

Exam 15: Global Production and Supply Chain Management

Ride Inc., a manufacturer of car components, wants to set up a system that will send invoices to its customers once orders for input supply are placed. What should the company use to perform this function?

Correct Answer
verified

When manufacturing a product that serves universal needs, a company should remember that it

Correct Answer
verified

One problem with a mass production system is that it

Correct Answer
verified

Two product features impact location decisions. Which of the two reduces the need for local responsiveness?

Correct Answer
verified

Production and supply chain functions must be able to accommodate demands for local responsiveness. Explain where these demands originate and how a company can accommodate these demands.

Correct Answer
verified
Production and logistics functions must ...
View Answer

Producing a standardized product in large volumes will

Correct Answer
verified

Based on the information provided, which of these firms should concentrate its production in a centralized location?

Correct Answer
verified

Products with high value-to-weight ratios tend to

Correct Answer
verified

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

Correct Answer
verified

What are some automobile companies doing in situations where neither centralization nor decentralization of production is feasible?

Correct Answer
verified

________ is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company.

Correct Answer
verified

During a planning meeting, the environmental team discusses how returned items should be disposed of or recycled. What aspect of the global supply chain are they discussing?

Correct Answer
verified

What term refers to the production of a variety of end products at a unit cost that could once be achieved only through bulk production of a standardized output?

Correct Answer
verified

When applying the Six Sigma approach, the lower the number of "sigmas," the greater the number of errors.

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

Ride Inc., a manufacturer of car components, wants to set up a system that will send invoices to its customers once orders for input supply are placed. What should the company use to perform this function?

Correct AnswerverifiedShow Answer

When manufacturing a product that serves universal needs, a company should remember that it

Correct AnswerverifiedShow Answer

One problem with a mass production system is that it

Correct AnswerverifiedShow Answer

Two product features impact location decisions. Which of the two reduces the need for local responsiveness?

Correct AnswerverifiedShow Answer

Production and supply chain functions must be able to accommodate demands for local responsiveness. Explain where these demands originate and how a company can accommodate these demands.

Correct AnswerverifiedProduction and logistics functions must ...View AnswerShow Answer

Producing a standardized product in large volumes will

Correct AnswerverifiedShow Answer

Based on the information provided, which of these firms should concentrate its production in a centralized location?

Correct AnswerverifiedShow Answer

Products with high value-to-weight ratios tend to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are some automobile companies doing in situations where neither centralization nor decentralization of production is feasible?

Correct AnswerverifiedShow Answer

________ is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company.

Correct AnswerverifiedShow Answer

During a planning meeting, the environmental team discusses how returned items should be disposed of or recycled. What aspect of the global supply chain are they discussing?

Correct AnswerverifiedShow Answer

What term refers to the production of a variety of end products at a unit cost that could once be achieved only through bulk production of a standardized output?

Correct AnswerverifiedShow Answer

When applying the Six Sigma approach, the lower the number of "sigmas," the greater the number of errors.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Production and logistics functions must ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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