Module 7 Flashcards
It would be common to use the term ____ to refer to the manufacturing process when discussing the global supply chain.
Multiple choice question.
production
lading
factors
exports
production
All the activities involved in creating a product are known as _____.
Multiple choice question.
R&D
information systems
production
transportation
production
A business uses the _____ function to obtain raw materials it needs to manufacture goods.
Multiple choice question.
purchasing
personnel
price
marketing
purchasing
What are the three broad groups of factors that a company should consider when making decisions on where to produce its products?
Multiple select question.
Social media factors
Technological factors
Country factors
Survey factors
Production factors
Technological factors
Country factors
Production factors
Given equivalent factor costs, which three conditions should have the most influence on a firm’s decision on where to develop a production site?
Multiple select question.
Cultural
Political
Economic
Social media
Marketing
Cultural
Political
Economic
When discussing the global supply chain, production is sometimes referred to as operations.
True false question.
True
False
True
Since unit costs decrease as plant output increases, a ______ of output is necessary for a plant to realize all major plant-level scale economies.
Multiple choice question.
minimum efficient scale
minimum evolving scale
minimum systematic scale
maximum efficient scale
minimum efficient scale
The term production is only used to denote a physical product.
True false question.
True
False
False
Flexible manufacturing technology is also referred to as ______ production.
Multiple choice question.
minimalist
lean
streamlined
transparent
lean
The process of a business or organization attempting to acquire goods or services to accomplish the goals of its enterprise is called
Multiple choice question.
supply chain management.
operations.
purchasing.
logistics.
purchasing.
Which two factors would lead a firm to choose a concentrated production configuration?
Multiple select question.
High minimum efficient scale of production
Low value-to-weight ratio
Substantial trade barriers
High fixed costs
High minimum efficient scale of production
High fixed costs
What are the considerations that help determine where an international firm will locate its production facilities?
Multiple choice question.
Ability to implement tariffs to limit competition
Ability to maximize costs and improve quality
Ability to circumnavigate environmental rules
Ability to minimize costs and improve quality
Ability to minimize costs and improve quality
Which three factors would lead a company to adopt a decentralized production configuration strategy?
Multiple select question.
Low value-to-weight ratio
Low fixed costs
High minimum efficient scale
Stable exchange rates
High trade barriers
Low value-to-weight ratio
Low fixed costs
High trade barriers
When a firm takes advantage of favorable economic, political, and cultural conditions when identifying a site for manufacturing activities, the benefits it can receive are called ______ economies.
Multiple choice question.
singular
marketing
secondary
location
location
The concept that valuable knowledge does not just reside in a firm’s domestic operations but can be found in foreign subsidiaries is known as ______.
Multiple choice question.
cross-cultural literacy
global learning
factor endowments
total quality management
global learning
The ______ is the smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs.
Multiple choice question.
TQM approach
minimum efficient scale
economies of scale
JIT approach
minimum efficient scale
Manuel works on the assembly line at a factory in Mexico that produces component parts for a Japanese automaker. The factory is not involved in any decisions on the automobiles but is simply designed for parts production. This is an example of a(n) _____ factory.
Multiple choice question.
lead
contributor
offshore
JIT
offshore
Flexible manufacturing involves a range of manufacturing technologies designed to do what three things?
Multiple select question.
Improve quality control
Reduce customization efforts
Increase utilization of machines
Reduce setup times
Minimize time management
Improve quality control
Increase utilization of machines
Reduce setup times
When flexible manufacturing technologies are available, this bolsters the argument for _____ production configurations.
Multiple choice question.
concentrated
decentralized
concentrated
Which type of factory is used and treated the same as any factory in a global firm’s home country?
Multiple choice question.
Lead
Outpost
Offshore
Source
Source
When trade barriers are high, fixed costs are low, important exchange rates are unstable, and the value-to-weight ratio is low, a ______ production configuration is preferred.
Multiple choice question.
decentralized
concentrated
decentralized
What are three strategic roles a foreign factory might have?
Multiple select question.
Expatriate factory
Domestic factory
Server factory
Outpost factory
Offshore factory
Server factory
Outpost factory
Offshore factory
What are two potential “hidden” costs of outsourcing production to a foreign location?
Multiple select question.
Poor product quality
Lack of tax base
High government regulations on labor
High employee turnover
Poor product quality
High employee turnover
A(n) _______ factory is developed and set up to assemble or manufacture products in a country where labor and/or raw materials are cheaper, for export and/or eventual import into the manufacturer’s home country.
Multiple choice question.
lead
server
offshore
contributor
offshore
Whether a firm should perform a value creation activity themselves or outsource, it is called the _____ decision.
Multiple choice question.
global learning
mass customization
make-or-buy
cross-cultural
make-or-buy
Flexible manufacturing technology is also referred to as ______ production.
Multiple choice question.
lean
streamlined
minimalist
transparent
lean
Artisan Inc. needs to find a company that will store its products and when requested provide customization—then ship the products to the final customer. What type of facility can help Artisan Inc. with this?
Multiple choice question.
Offshore factory
JIT warehouse center
Global distribution center
Lead factory
Global distribution center
A source factory __ than an offshore factory.
Multiple choice question.
has less input in product customization
has a more significant strategic role
is less cost effective
has less input in purchasing decisions
has a more significant strategic role
A company that engages in international purchasing, but does so in a reactive and uncoordinated way, is at which level of global purchasing?
Multiple choice question.
Level IV
Level III
Level I
Level II
Level II
Which three factors would lead a company to adopt a decentralized production configuration strategy?
Multiple select question.
High minimum efficient scale
Low value-to-weight ratio
Stable exchange rates
High trade barriers
Low fixed costs
Low value-to-weight ratio
Low fixed costs
High trade barriers
he inventory model used to decrease costs by having inventory arrive at a manufacturing plant only when it is needed is called ______ inventory.
Multiple choice question.
ISO
CRM
TQM
JIT
JIT
One drawback to basing production in a foreign location is the potential for poor product quality. This is an example of a(n) _________________ cost of foreign production.
hidden
Using a web-or ______-based information system allows a company to speed up production, if necessary, by flying in key parts to the facility.
Multiple choice question.
cloud
accounting
R&D
logistics
cloud
When a company makes a make-or-buy decision, the strategic level is typically focused on the ______-term, while the operational level is more focused on the ______-term.
Multiple choice question.
long; short
short; long
long; short
What two factors are critically important to the success of global supply chain coordination?
Multiple select question.
Coordination
Commercialization
Integration
Internationalization
Coordination
Integration
A global distribution center is used to store quantities and assortments of products and allow for customization of those products.
True false question.
True
False
True
customers are an interacting organization within the upstream portion of the global supply chain.
True false question.
True
False
False
A company that engages in global purchasing activities that are integrated across worldwide locations and functional groups is at which level of global purchasing?
Multiple choice question.
Level V
Level III
Level II
Level IV
Level V
Web-based information systems can improve the ______ function by better tracking component parts, optimizing production schedules, and by providing good information about the company’s supply chain.
Multiple choice question.
logistics
offshoring
manufacturing
marketing
logistics
_____ coordination refers to the integrated and coordinated decisions of key global supply chain activities.
Multiple choice question.
Integrated supply chain
Inventory turnover
Global supply chain
Total quality management
Global supply chain
Which three groups are part of the upstream/inbound portion of the global supply chain?
Multiple select question.
Buyers
Customers
Partners
Suppliers
Vendors
Partners
Suppliers
Vendors
Using a web-or ______-based information system allows a company to speed up production, if necessary, by flying in key parts to the facility.
Multiple choice question.
cloud
logistics
R&D
accounting
cloud
