Question 1

The advantages of buying component parts from independent suppliers are that it gives the firm the following advantages:

Accepted Answer

A)  it may help the firm to capture orders from international customers, facilitates the scheduling of adjacent processes and, greater flexibility.
B)  greater flexibility, facilitates the scheduling of adjacent processes and, protects proprietary production technology.
C)  facilitates investments in highly specialized assets, protects proprietary product technology and, facilitates the scheduling of adjacent processes.
D)  greater flexibility, it can help drive down the firm's cost structure and, it may help the firm to capture orders from international customers.
E)  provides offsets, improved costs and new technologiesF) A) and C)
G) B) and E) D

Question 2

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Accepted Answer

A) True 
 B)False

Question 3

Under a __________ system, parts enter the manufacturing process immediately; they are not warehoused.

Accepted Answer

A)  just-in-time
B)  reengineering
C)  soft manufacturing
D)  maximum fluency
E)  flexible manufacturingF) A) and D)
G) None of the above

Question 4

Placing manufacturing facilities in one concentrated location makes sense for all of the following reasons except:

Accepted Answer

A)  trade barriers are high.
B)  the product serves universal needs.
C)  important exchange rates are expected to remain relatively stable.
D)  the production technology has high fixed costs or a high minimum efficient scale or a flexible manufacturing technology exists.
E)  product's value-to-weight ratio is highF) A) and B)
G) B) and C)

Question 5

Since issues of strategic flexibility and organizational control loom even larger for international businesses than purely domestic ones, international business should be particularly wary of _______ into component part manufacture.

Accepted Answer

A)  horizontal integration
B)  increased diversification
C)  vertical integration
D)  strategic integration
E)  global integrationF) C) and D)
G) B) and E)

Question 6

Make-or buy decisions are even more problematic for international businesses.

Accepted Answer

A) True 
 B)False

Question 7

Pestell Shavings success demonstrates which key factor that contributes to effective global materials management.

Accepted Answer

A)  hiring the right logistics partner
B)  the need for government assistance
C)  expanding slowly
D)  product specialization and minimal processing
E)  be aware of one's environmentF) None of the above
G) C) and D)

Question 8

Discuss the overall objectives of international firms in terms of manufacturing and materials management.

Accepted Answer

International firms have four principle objectives in the area of manufacturing and materials management.The first two objectives are to lower costs and increase quality.In this respect, international firms are no different than their strictly domestic counterparts.Cost reductions can be realized through improved efficiency and through eliminating defective products from both the supply chain and the manufacturing process.Implementing Just-In-Time manufacturing is an important step in achieving these objectives.Quality improvement can be realized through a number of initiatives, including total quality management (TQM) and ISO 9000 certification.
The second two objectives that are shared by the majority of international firms in this area relate directly to their international efforts.First, a firm's manufacturing and materials management functions must be able to accommodate demands for local responsiveness.For instance, a Canadian exporter may have to vary the design of a product that is manufactured and sold in North America to meet European standards.Second, a firm's manufacturing and materials management function must be able to respond quickly to shifts in consumer demand.For instance, if a trend developed in Asia towards a preference for lower-fat foods, the importers of food products to Asia that respond to this trend the most rapidly would have a substantial advantage.

Question 9

What is the process of creating a product called?

Accepted Answer

A)  bureaucracy
B)  materials management
C)  production
D)  administration
E)  R&DF) A) and B)
G) All of the above

Question 10

Political economy, culture, and relative factors costs are similar across the countries of the world.

Accepted Answer

A) True 
 B)False

Question 11

According to the textbook, the benefits of manufacturing components in-house seem to be greatest when all of the following factors are involved except:

Accepted Answer

A)  when highly specialized assets are involved
B)  when the firm is simply more efficient than external suppliers at performing a particular activity
C)  when maximum flexibility is necessary
D)  when vertical integration is necessary for protecting proprietary technology
E)  when trade barriers are lowF) C) and E)
G) A) and B)

Question 12

ISO 9000 is an Asian quality certification process.

Accepted Answer

A) True 
 B)False

Question 13

The ____________ declines 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)  component expense curve
B)  unit expense line
C)  unit cost curve
D)  component cost slope
E)  marginal cost curveF) None of the above
G) B) and E) C

Question 14

What refers to the ability to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output?

Accepted Answer

A)  Assembly-line like customization
B)  Standardized customization
C)  Mass customization
D)  Economies of customization
E)  Product customizationF) A) and D)
G) All of the above

Question 15

Saving time by not producing poor quality products that cannot be sold, lowering rework costs, lowering scrap costs, and lowering warranty costs are the intended results of:

Accepted Answer

A)  total feature management.
B)  reengineering.
C)  logistics.
D)  total quality management.
E)  materials managementF) A) and B)
G) C) and D)

Question 16

Among the reasons for establishing wholly owned subsidiaries was the requirement for rigorous quality control.TQM is one of the approaches that companies use to manage and control quality.TQM requires a very high degree of cooperation between all of the members of the value chain if it is to be effective.Discuss this.

Accepted Answer

The student could answer that the growth...

Question 17

Concentrating a firm's manufacturing facilities in an optimal location and serving the world market from that single location makes sense when trade barriers are low.

Accepted Answer

A) True 
 B)False

Question 18

Initially, many foreign factories are established where:

Accepted Answer

A)  labour costs are high.
B)  labour costs are low.
C)  labour costs are on par with the manufacturer's typical costs.
D)  labour intensive manufacturing is the exception rather than the norm.
E)  labour is more productiveF) A) and B)
G) All of the above

Question 19

Needs that are the same all over the world are referred to as ______________ needs.

Accepted Answer

A)  specific
B)  domestic
C)  universal
D)  individualistic
E)  globalF) A) and C)
G) C) and D)

Question 20

Discuss the advantages of entering into strategic alliances with suppliers? In general, is alliance formation a good idea for international firms?

Accepted Answer

This question is designed to elicit clas...

Exam 15: Global Production, Outsourcing, and Logistics

The advantages of buying component parts from independent suppliers are that it gives the firm the following advantages:

Correct Answer
verified
D

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Correct Answer
verified

Under a __________ system, parts enter the manufacturing process immediately; they are not warehoused.

Correct Answer
verified

Placing manufacturing facilities in one concentrated location makes sense for all of the following reasons except:

Correct Answer
verified

Since issues of strategic flexibility and organizational control loom even larger for international businesses than purely domestic ones, international business should be particularly wary of _______ into component part manufacture.

Correct Answer
verified

Make-or buy decisions are even more problematic for international businesses.

Correct Answer
verified

Pestell Shavings success demonstrates which key factor that contributes to effective global materials management.

Correct Answer
verified

Discuss the overall objectives of international firms in terms of manufacturing and materials management.

What is the process of creating a product called?

Correct Answer
verified

Political economy, culture, and relative factors costs are similar across the countries of the world.

Correct Answer
verified

According to the textbook, the benefits of manufacturing components in-house seem to be greatest when all of the following factors are involved except:

Correct Answer
verified

ISO 9000 is an Asian quality certification process.

Correct Answer
verified

The ____________ declines with output until a certain output level is reached; at which point further increases in output realize little reduction in unit costs.

Correct Answer
verified
C

What refers to the ability to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output?

Correct Answer
verified

Saving time by not producing poor quality products that cannot be sold, lowering rework costs, lowering scrap costs, and lowering warranty costs are the intended results of:

Correct Answer
verified

Correct Answer
verified
The student could answer that the growth...
View Answer

Concentrating a firm's manufacturing facilities in an optimal location and serving the world market from that single location makes sense when trade barriers are low.

Correct Answer
verified

Initially, many foreign factories are established where:

Correct Answer
verified

Needs that are the same all over the world are referred to as ______________ needs.

Correct Answer
verified

Discuss the advantages of entering into strategic alliances with suppliers? In general, is alliance formation a good idea for international firms?

Correct Answer
verified
This question is designed to elicit clas...
View Answer

Exam 15: Global Production, Outsourcing, and Logistics

The advantages of buying component parts from independent suppliers are that it gives the firm the following advantages:

Correct AnswerverifiedD

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Correct AnswerverifiedShow Answer

Under a __________ system, parts enter the manufacturing process immediately; they are not warehoused.

Correct AnswerverifiedShow Answer

Placing manufacturing facilities in one concentrated location makes sense for all of the following reasons except:

Correct AnswerverifiedShow Answer

Since issues of strategic flexibility and organizational control loom even larger for international businesses than purely domestic ones, international business should be particularly wary of _______ into component part manufacture.

Correct AnswerverifiedShow Answer

Make-or buy decisions are even more problematic for international businesses.

Correct AnswerverifiedShow Answer

Pestell Shavings success demonstrates which key factor that contributes to effective global materials management.

Correct AnswerverifiedShow Answer

Discuss the overall objectives of international firms in terms of manufacturing and materials management.

What is the process of creating a product called?

Correct AnswerverifiedShow Answer

Political economy, culture, and relative factors costs are similar across the countries of the world.

Correct AnswerverifiedShow Answer

According to the textbook, the benefits of manufacturing components in-house seem to be greatest when all of the following factors are involved except:

Correct AnswerverifiedShow Answer

ISO 9000 is an Asian quality certification process.

Correct AnswerverifiedShow Answer

The ____________ declines with output until a certain output level is reached; at which point further increases in output realize little reduction in unit costs.

Correct AnswerverifiedC

What refers to the ability to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output?

Correct AnswerverifiedShow Answer

Saving time by not producing poor quality products that cannot be sold, lowering rework costs, lowering scrap costs, and lowering warranty costs are the intended results of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe student could answer that the growth...View AnswerShow Answer

Concentrating a firm's manufacturing facilities in an optimal location and serving the world market from that single location makes sense when trade barriers are low.

Correct AnswerverifiedShow Answer

Initially, many foreign factories are established where:

Correct AnswerverifiedShow Answer

Needs that are the same all over the world are referred to as ______________ needs.

Correct AnswerverifiedShow Answer

Discuss the advantages of entering into strategic alliances with suppliers? In general, is alliance formation a good idea for international firms?

Correct AnswerverifiedThis question is designed to elicit clas...View AnswerShow Answer

Correct Answer
verified
D

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
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The student could answer that the growth...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This question is designed to elicit clas...
View Answer