global considerations in operations management

Question 1

what is global sourcing?

Answer 1

finding the most cost-efficient materials and other inputs from countries overseas

Question 2

what are the advantages and disadvantages of global sourcing?

Answer 2

adv:
- reduces cost
- higher quality materials

disadv:
-higher risks to interrupted supply
- harder to measure quality of inputs.

Question 3

what is overseas manufacture?

Answer 3

• the production of a good in a country that is different from the business’ headquarters

Question 4

what are the advantages and disadvantages of overseas manufature?

Answer 4

adv:
- cheaper manufacturing process
- closer to suppliers

disadv:
-longer delivery time
- harder to measure the quality of outputs

Question 5

what is global outsourcing?

Answer 5

• having a contract with a business in an overseas country to help produce the product and the product gets sent to the company that wants the product.

Question 6

what are the advantages and disadvantages of global outsourcing?

Answer 6

adv:
- cheaper manufacture process
- business can focus on core activities they do best

disadv:
- harder to protect confidential information
- language barrier

Question 7

what is supply chain management?

Answer 7

• management of moving and storing materials, inventory and goods.