Question 1

Adopting flexible manufacturing technology to produce a wide variety of end products results in:

Accepted Answer

A)   increased setup times for complex equipment.
B)   increased utilization of individual machines.
C)   reduced quality control.
D)   increased unit cost of products.
E)   diseconomies of scale.F) A) and B)
G) C) and E)

Question 2

Due to the upward migration in the strategic role of foreign production sites,they are now viewed as:

Accepted Answer

A)   centers that do not generate valuable knowledge.
B)   globally dispersed centers of excellence.
C)   liabilities that add to the cost structure of the company.
D)   sweatshops where unskilled labor churns out low-cost goods.
E)   low quality manufacturing centers.F) A) and B)
G) A) and C)

Question 3

Which of the following is true about production and logistics in international businesses?

Accepted Answer

A)   The term production cannot be used to denote service activities.
B)   Developing nations are outsourcing the "production" of certain service activities to the United States.
C)   In an international firm, production and logistics are closely linked.
D)   The production functions of an international firm can only be located in its home country.
E)   Demands for local responsiveness create pressures to centralize production activities.F) A) and E)
G) A) and D)

Question 4

Which of the following allows suppliers,shippers,and the purchasing firm to communicate with each other via the Internet with no time delay?

Accepted Answer

A)   Electronic data interchange system
B)   Data warehousing system
C)   Batch processing system
D)   Skills inventory system
E)   Just-in-time inventory systemF) B) and D)
G) B) and C)

Question 5

Which of the following statements is true of flexible manufacturing technologies?

Accepted Answer

A)   The idea of manufacturing in each major market is becoming attractive due to these technologies.
B)   They fail to produce multiple models from the same line.
C)   They are used to reconcile the goals of large volumes and standardized output.
D)   They decrease the utilization of individual machines.
E)   They allow firms to customize products to national differences at a single facility.F) A) and E)
G) C) and E)

Question 6

A major aspect of a transnational strategy is a belief that valuable knowledge resides in a firm's domestic operations instead of its foreign subsidiaries.

Accepted Answer

A) True 
 B)False

Question 7

The level of output at which most plant-level scale economies are exhausted is known as _____.

Accepted Answer

A)   mass customization
B)   breakeven point
C)   minimum efficient scale
D)   just-in-time
E)   lean productionF) C) and D)
G) B) and E)

Question 8

A firm that enters long-term alliances may limit its strategic flexibility by the commitments it makes to its alliance partners.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of industrial products such as steel?

Accepted Answer

A)   They serve needs that are the same all over the world.
B)   They have drastic national differences in consumer taste and preference.
C)   The need for local responsiveness for these products is more than consumer products.
D)   It makes sense to produce these products in multiple locations close to major markets.
E)   A plant must operate at the highest minimum efficient scale of output for these products.F) All of the above
G) A) and C)

Question 11

Concentration of production makes most sense when:

Accepted Answer

A)   trade barriers are low.
B)   the product's value-to-weight ratio is low.
C)   important exchange rates are volatile.
D)   flexible manufacturing technology does not exist.
E)   the production technology has low fixed costs.F) C) and D)
G) D) and E)

Question 12

Pink Polka Fashion Inc.,a multinational clothing brand,has plans to expand in the European Union (EU) marketplace.In order to be able to do so,the EU requires that the:

Accepted Answer

A)   firm adopt techniques of total quality management.
B)   firm achieve six sigma.
C)   firm uses just-in-time inventory system.
D)   firm patents its designs and technology.
E)   firm's products be certified under ISO 9000.F) A) and B)
G) A) and C)

Question 13

If a firm possesses proprietary product technology,the best option for that firm would be to:

Accepted Answer

A)   manufacture the product in-house so that it does not lose its competitive advantage.
B)   outsource the production activities to independent suppliers in order to realize economies of scale.
C)   merge with competitors to reduce investments on technology.
D)   share the technology to make the industry more competitive.
E)   transfer the technology to less developed countries.F) B) and D)
G) D) and E)

Question 14

Which of the following statements is true about performing a manufacturing activity in several locations at once?

Accepted Answer

A)   A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high.
B)   Performing a manufacturing activity in several locations makes it difficult for a firm to accommodate demands for local responsiveness.
C)   Producing in multiple locations reduces the bargaining power of a firm against manufacturers.
D)   The larger the minimum efficient scale of a plant relative to total global demand, the greater the need for decentralizing production to multiple locations.
E)   Many firms disperse their manufacturing plants to different locations as a "real hedge" against potentially adverse moves in currencies.F) A) and B)
G) B) and C)

Question 15

Discuss the two basic strategies for locating production facilities.When is it most appropriate to centralize production?

Accepted Answer

There are two basic strategies for locat...

Question 16

What are the ways in which improved quality control reduces costs?

Accepted Answer

The objectives of reducing costs and inc...

Question 17

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

Accepted Answer

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

Question 18

In terms of minimum efficient scale of output,the "unit cost curve" rises with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Accepted Answer

A) True 
 B)False

Question 19

The production and logistics functions of an international firm are independent of each other.

Accepted Answer

A) True 
 B)False

Question 20

With the advent of flexible manufacturing technologies and mass customization,manufacturing in each major market in which the firm is active is becoming less attractive.

Accepted Answer

A) True 
 B)False

Exam 15: Global Production, Outsourcing, and Logistics

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

Correct AnswerverifiedShow Answer

Which of the following statements is true about performing a manufacturing activity in several locations at once?

Correct AnswerverifiedShow Answer

With the advent of flexible manufacturing technologies and mass customization,manufacturing in each major market in which the firm is active is becoming less attractive.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Pink Polka Fashion Inc.,a multinational clothing brand,has plans to expand in the European Union (EU) marketplace.In order to be able to do so,the EU requires that the:

Correct AnswerverifiedShow Answer

Due to the upward migration in the strategic role of foreign production sites,they are now viewed as:

Correct AnswerverifiedShow Answer

Which of the following allows suppliers,shippers,and the purchasing firm to communicate with each other via the Internet with no time delay?

Correct AnswerverifiedShow Answer

Which of the following statements is true of industrial products such as steel?

Correct AnswerverifiedShow Answer

If a firm possesses proprietary product technology,the best option for that firm would be to:

Correct AnswerverifiedShow Answer

The production and logistics functions of an international firm are independent of each other.

Correct AnswerverifiedShow Answer

What are the ways in which improved quality control reduces costs?

Correct AnswerverifiedThe objectives of reducing costs and inc...View AnswerShow Answer

A firm that enters long-term alliances may limit its strategic flexibility by the commitments it makes to its alliance partners.

Correct AnswerverifiedShow Answer

A major aspect of a transnational strategy is a belief that valuable knowledge resides in a firm's domestic operations instead of its foreign subsidiaries.

Correct AnswerverifiedShow Answer

Discuss the two basic strategies for locating production facilities.When is it most appropriate to centralize production?

Correct AnswerverifiedThere are two basic strategies for locat...View AnswerShow Answer

Concentration of production makes most sense when:

Correct AnswerverifiedShow Answer

In terms of minimum efficient scale of output,the "unit cost curve" rises with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Correct AnswerverifiedShow Answer

The level of output at which most plant-level scale economies are exhausted is known as _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true of flexible manufacturing technologies?

Correct AnswerverifiedShow Answer

Which of the following is true about production and logistics in international businesses?

Correct AnswerverifiedShow Answer

Adopting flexible manufacturing technology to produce a wide variety of end products results in:

Correct AnswerverifiedShow Answer

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The objectives of reducing costs and inc...
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There are two basic strategies for locat...
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