Question 1

When a company achieves mass customization via flexible manufacturing technologies, it increases the company's

Accepted Answer

A)   cost structure.
B)   waste.
C)   customer responsiveness.
D)   learning effects.
E)   externalities.F) C) and D)
G) A) and E)

Question 2

W. Edwards Deming believed that achieving better quality requires the commitment of everyone in a company.

Accepted Answer

A) True 
 B)False

Question 3

Marble Counters Inc. prides itself on quality control and advertises that "we won't ship a product unless we make it the way you want." Based on this, Marble Counters Inc. most likely

Accepted Answer

A)   works in a regional market.
B)   buys products from a wholesaler for use in its products.
C)   works in a national market.
D)   is a monopoly.
E)   makes all of the products it ships.F) C) and E)
G) A) and D)

Question 4

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) A) and C)
G) B) and C)

Question 5

A product's value-to-weight ratio affects location decisions primarily because of its influence on

Accepted Answer

A)   transportation costs.
B)   shelf life.
C)   work-in-progress inventory.
D)   inventory turnover.
E)   capacity utilization.F) B) and D)
G) A) and D)

Question 6

The effect of improved quality control is to lower the costs of value creation by reducing production costs and

Accepted Answer

A)   decreasing inventory turnover.
B)   decreasing after-sales service costs.
C)   increasing scrap costs.
D)   increasing warranty costs.
E)   increasing time spent on fixing defects.F) A) and B)
G) C) and E)

Question 7

What action did Deming suggest management take in order to achieve total quality management?

Accepted Answer

A)   create an environment where employees did not fear reporting problems
B)   import more component parts from countries having factor endowments
C)   increase the pay rate of all employees to establish credibility
D)   purchase machinery that replaced human interaction with production
E)   eliminate middle management positions from the chain of commandF) A) and D)
G) None of the above

Question 8

The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their

Accepted Answer

A)   strong intellectual property rights laws.
B)   lower labor costs.
C)   accessibility to better technology.
D)   sophisticated infrastructure.
E)   currency appreciation.F) A) and B)
G) B) and D)

Question 9

According to the concept of economies of scale, as plant output expands, unit costs decrease.

Accepted Answer

A) True 
 B)False

Question 10

Define minimum efficient scale of output. How does this influence the location decisions of production activities?

Accepted Answer

The level of output at which most plant-...

Question 11

Flexible machine cells enhance a company's ability to provide mass customization.

Accepted Answer

A) True 
 B)False

Question 12

Which country pioneered the concept of just-in-time inventory?

Accepted Answer

A)   England
B)   Germany
C)   Mexico
D)   Japan
E)   United StatesF) A) and C)
G) B) and E)

Question 13

The ISO 9000 system used in the European marketplace provides small companies with information regarding export opportunities.

Accepted Answer

A) True 
 B)False

Question 14

One of W. Edwards Deming's beliefs about the total quality management philosophy is that

Accepted Answer

A)   quality of supervision should be improved by allowing more time for supervisors to work with employees.
B)   management should embrace the philosophy that mistakes are often acceptable.
C)   work standards should be defined only as numbers or quotas.
D)   achieving better quality requires commitment more at the top management than at any other level.
E)   management should create an environment in which employees will follow orders rather than recommend changes.F) A) and B)
G) A) and C)

Question 15

A major cost savings from just-in-time inventory systems comes from

Accepted Answer

A)   a shift in focus away from quality.
B)   increasing productivity of workers.
C)   speeding up inventory turnover.
D)   creating a buffer stock of inventory.
E)   writing off excess unsold inventory against earnings.F) A) and B)
G) B) and D)

Question 16

Mass customization provides companies with the ability to meet which two goals?

Accepted Answer

A)   centralized production and long production runs
B)   product standardization and economies of scale
C)   high fixed costs and multiple production facilities
D)   low cost and product customization
E)   local responsiveness and decentralized productionF) B) and E)
G) C) and D)

Question 17

The ________ operational objective refers to integrating a control system across global supply chain functions to eliminate global supply chain disruptions.

Accepted Answer

A)   shipment consolidation
B)   variance reduction
C)   quality
D)   life-cycle support
E)   responsivenessF) A) and E)
G) A) and B)

Question 18

Charcoal Corp. is an electronics retail giant with offices in Atlanta. The company decides to build a facility in Silicon Valley where new products can be developed since this area is known for technological innovation. Which type of facility is Charcoal Corp. building?

Accepted Answer

A)   server factory
B)   outpost factory
C)   lead factory
D)   contributor factory
E)   offshore factoryF) A) and C)
G) C) and E)

Question 19

Discuss the elements that favor a make decision in a company.

Accepted Answer

The elements that favor a make decision-...

Question 20

One way to reduce the risks for a business that operates on just-in-time principles is to

Accepted Answer

A)   depend on one supplier for an important input.
B)   outsource the production of inputs only to advanced countries.
C)   hold an excess buffer stock of inventory.
D)   source inputs from several suppliers located in different countries.
E)   avoid using electronic data interchange.F) A) and C)
G) A) and E)

Exam 15: Global Production and Supply Chain Management

Flexible machine cells enhance a company's ability to provide mass customization.

Correct AnswerverifiedShow Answer

According to the concept of economies of scale, as plant output expands, unit costs decrease.

Correct AnswerverifiedShow Answer

The ISO 9000 system used in the European marketplace provides small companies with information regarding export opportunities.

Correct AnswerverifiedShow Answer

A major cost savings from just-in-time inventory systems comes from

Correct AnswerverifiedShow Answer

When a company achieves mass customization via flexible manufacturing technologies, it increases the company's

Correct AnswerverifiedShow Answer

Which country pioneered the concept of just-in-time inventory?

Correct AnswerverifiedShow Answer

The effect of improved quality control is to lower the costs of value creation by reducing production costs and

Correct AnswerverifiedShow Answer

Mass customization provides companies with the ability to meet which two goals?

Correct AnswerverifiedShow Answer

Marble Counters Inc. prides itself on quality control and advertises that "we won't ship a product unless we make it the way you want." Based on this, Marble Counters Inc. most likely

Correct AnswerverifiedShow Answer

What action did Deming suggest management take in order to achieve total quality management?

Correct AnswerverifiedShow Answer

Discuss the elements that favor a make decision in a company.

Correct AnswerverifiedThe elements that favor a make decision-...View AnswerShow Answer

Define minimum efficient scale of output. How does this influence the location decisions of production activities?

Correct AnswerverifiedThe level of output at which most plant-...View AnswerShow Answer

One of W. Edwards Deming's beliefs about the total quality management philosophy is that

Correct AnswerverifiedShow Answer

Concentration of production makes most sense when

Correct AnswerverifiedShow Answer

The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their

Correct AnswerverifiedShow Answer

A product's value-to-weight ratio affects location decisions primarily because of its influence on

Correct AnswerverifiedShow Answer

One way to reduce the risks for a business that operates on just-in-time principles is to

Correct AnswerverifiedShow Answer

W. Edwards Deming believed that achieving better quality requires the commitment of everyone in a company.

Correct AnswerverifiedShow Answer

The ________ operational objective refers to integrating a control system across global supply chain functions to eliminate global supply chain disruptions.

Correct AnswerverifiedShow Answer

Charcoal Corp. is an electronics retail giant with offices in Atlanta. The company decides to build a facility in Silicon Valley where new products can be developed since this area is known for technological innovation. Which type of facility is Charcoal Corp. building?

Correct AnswerverifiedShow Answer

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The elements that favor a make decision-...
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The level of output at which most plant-...
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