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Q:
A company may use outsourcing as an implied threat to underperforming employees.
Q:
The make-or-buy decision applies only to domestic firms.
Q:
Vertical integration occurs when the company owns the entire supplier network or at least a significant part of it.
Q:
Keiretsu is one of the two major configurations of sourcing.
Q:
A company would most likely outsource abroad in order to gain access to more domestic products.
Q:
Sourcing in the home country enables a company to avoid numerous problems associated with global sourcing.
Q:
Six Sigma is a highly focused system of quality control that scrutinizes a company's entire production system.
Q:
Most U.S. companies have moved from a total quality management (TQM) approach to an acceptable quality level (AQL) approach.
Q:
The three levels of quality standards are general, international, and industry-specific.
Q:
The Malcolm Baldrige National Quality Award is an example of a general standard that is presented annually to companies that demonstrate quality strategies and achievements.
Q:
Independent suppliers can connect to a company's intranet to help automate and organize delivery of components to that company.
Q:
Electronic data interchange (EDI) is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.
Q:
EDI is software that can link information flows from different parts of a business and from different geographic areas.
Q:
A comprehensive supply chain strategy should include good inventory management.
Q:
Rationalization is the process of specializing in manufacturing according to product or process.
Q:
Centralized manufacturing is most widely used when customers have widely varying localized needs.
Q:
When firms estimate the costs of outsourcing to low-wage countries, they often overlook elements such as shipping distances.
Q:
Offshore manufacturing is attractive because it offers high labor costs, cheap materials and components, and proximity to markets.
Q:
Innovation is the ability of the production process to make different kinds of products and to adjust the volume of output.
Q:
Cost-minimization strategies force MNEs to establish economies of scale in manufacturing.
Q:
Configuration is the linking or integrating of activities into a unified system.
Q:
The success of a global manufacturing strategy depends on compatibility, configuration, coordination, and control.
Q:
Inbound logistics is also known as materials management.
Q:
In a global supply chain, suppliers must be part of the manufacturer's organizational structure.
Q:
All of the following are benefits of using free trade zones EXCEPT ________.
A) streamlined customs procedures
B) reduced or eliminated duties
C) deferred or eliminated taxes
D) improved quality of goods
Q:
Which of the following is a current trend with regards to transportation networks?
A) increased simplicity of transporting goods internationally
B) decreased use of third-party intermediaries to store and transport goods
C) increased use of third-party intermediaries to store and transport goods
D) decreased risks of managing longer global supply chains
Q:
________ is a particularly important consideration in the establishment of a transportation network.
A) Warehouse configuration
B) ISO 9000
C) Rationalization
D) The kanban system
Q:
Foreign trade zones (FTZs) can be divided into ________ and ________.
A) domestic zones; global zones
B) import zones; export zones
C) general-purpose zones; subzones
D) foreign-goods zones; domestic-materials zones
Q:
Which of the following is one of the main purposes of FTZs?
A) discouraging companies to locate in the host country
B) forcing countries to pay extra duties
C) discouraging companies from using JIT
D) allowing countries to defer duties
Q:
________ are special locations for storing domestic and imported inventory in order to avoid paying duties until the inventory is sold.
A) Foreign trade zones (FTZs)
B) Ports of entry
C) Duty-free zones
D) Customs areas
Q:
A kanban system is best described as a system that ________.
A) uses special locations for storing imported inventory to avoid paying duties
B) seeks to improve quality by setting a rigorous goal of zero defects
C) electronically links together suppliers, customers, and intermediaries
D) facilitates JIT by using cards to control the flow of production through a factory
Q:
Gibson Enterprises is an MNE that relies on just-in-time inventory management and lean manufacturing systems to optimize quality and efficiency. For the last few years, Gibson has used the same foreign sources for its raw materials. What is the most likely risk faced by Gibson because of foreign sourcing?
A) quality of incoming inventory
B) uncertainty of arriving parts
C) few available suppliers
D) high inventory costs
Q:
At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories. Which of the following does Fidelity most likely use?
A) just-in-time (JIT)
B) total quality management (TQM)
C) six Sigma
D) acceptable quality level (AQL)
Q:
Jeff manages global purchasing for his employer and needs to select a new supplier. Jeff should most likely ________.
A) implement e-commerce
B) focus mainly on purchase price
C) establish clear performance expectations
D) maintain the same type of relationship with every supplier
Q:
Which of the following is a sourcing strategy in the global context?
A) use only local purchasing agents
B) establish local purchasing offices
C) purchase only from global suppliers
D) assign domestic buyers for international purchasing
Q:
Which of the following is one of the four phases of purchasing globalization?
A) foreign buying as a part of procurement strategy
B) complete rejection of domestic purchasing
C) foreign buying based on want
D) global purchasing only
Q:
A current sourcing dilemma that some companies face is whether or not they should ________.
A) use outsourcing as a reward to underperforming employees
B) make critical components for which they have competencies
C) outsource innovative processes
D) measure supplier performance
Q:
Which of the following should an MNE most likely consider in a make-or-buy decision?
A) organizational hierarchy
B) supplier capabilities
C) employee morale
D) niche markets
Q:
Which of the following is one of the biggest barriers to expanding the use of outsourcing?
A) long-term independence from an external organization
B) loss of operational control
C) cultural opportunities in the organization
D) language barriers
Q:
In deciding whether to make or buy, MNEs should focus on those parts that are ________ to the product and that they are ________ at making.
A) critical; distinctively good
B) incremental; distinctively good
C) critical; marginally good
D) incremental; marginally good
Q:
Japanese ________ are groups of independent companies that work together to manage the flow of goods and services along an entire value chain.
A) chaebol
B) keiretsus
C) sigmas
D) kaizen
Q:
Rapid Technologies owns its entire supplier network, which means that the firm most likely uses ________.
A) industrial clustering
B) competitive sharing
C) vertical integration
D) global outsourcing
Q:
Which of the following would most likely be reduced by vertical integration?
A) export tariffs
B) component prices
C) product returns
D) transaction costs
Q:
ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers. ACE is most likely engaging in ________.
A) industrial clustering
B) horizontal sourcing
C) zero sourcing
D) offshoring
Q:
All of the following tend to be more expensive when sourcing abroad, EXCEPT ________.
A) transportation costs
B) inventory holding costs
C) brokers and agents fees
D) labor rates
Q:
Alta Designs is considering the idea of global sourcing. What would be the most likely result for Alta Designs?
A) gain access to more domestic markets
B) gain access to more domestic products
C) lower costs and improve quality
D) shorten lengthy supply lines
Q:
________ is the process of a firm having inputs supplied to it for the production process.
A) Sourcing
B) Subcontracting
C) External production
D) Offshoring
Q:
Which of the following is a set of universal standards for a globally accepted quality assurance system?
A) just-in-time (JIT) inventory management
B) Six Sigma
C) total quality management (TQM)
D) ISO 9000
Q:
What are the three levels of quality standards?
A) general, industry-specific, and company
B) general, international, and domestic
C) employee, company, and customer
D) company, international, and industry-specific
Q:
Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system. Fortis most likely uses ________.
A) total quality management
B) acceptable quality levels
C) just-in-time processes
D) Six Sigma processes
Q:
An element of total quality management (TQM) that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ________.
A) kaizen
B) Six Sigma
C) kanban
D) acceptable quality level (AQL)
Q:
The Japanese approach to quality is total quality management (TQM), which stresses which of the following principles?
A) employee involvement, commitment to international standards, and customer satisfaction
B) customer satisfaction, continuous improvements, and warranties
C) customer satisfaction, employee involvement, and continuous improvements
D) employee involvement, continuous improvements, and commitment to international quality standards
Q:
Before the strong emphasis on zero defects, U.S. companies operated under the premise of ________, which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects.
A) Six Sigma
B) acceptable quality level
C) just-in-time inventory management (JIT)
D) ISO 9000
Q:
Quality is defined as ________.
A) meeting or exceeding the expectations of the customer
B) meeting the everyday low price expected by the customer
C) meeting international quality standards, such as ISO 9000
D) meeting internal quality standards
Q:
What is the main information-related challenge in global supply chain management?
A) The Internet is growing too quickly in emerging markets.
B) Few countries are technologically advanced.
C) The industrial equipment and food/agriculture industries use e-commerce more than industries such as defense and motor vehicles.
D) Many emerging market networks cannot be managed through the Internet because of the lack of technology.
Q:
Which of the following is most likely a true statement about using the Internet in supply chain management?
A) The Internet is universally accessible.
B) The Internet slows internal processes in a company.
C) The Internet minimizes efficiency gains to a company's suppliers.
D) The Internet prevents a deeper level of collaboration and communication.
Q:
________ is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.
A) Electronic data interchange (EDI)
B) ERP (enterprise resource planning)
C) Private technology exchange (PTX)
D) E-commerce
Q:
Amazon relies on the Internet to join together suppliers with companies and companies with customers. Amazon is most likely using ________.
A) value-added networks
B) e-commerce
C) electronic data interchange
D) private technology exchange
Q:
MedCo uses an IT system that labels a product with an electronic tag to provide realtime information. Which of the following does MedCo most likely use?
A) EDI (electronic data interchange)
B) RFID (radio frequency ID)
C) PTX (private technology exchange)
D) ERP (enterprise resource planning)
Q:
Giga-Mart has an IT system that links the firm's suppliers, manufacturers, customers, and intermediaries. Giga-Mart most likely has a(n) ________,
A) TQM (total quality management)
B) JIT (just-in-time)
C) EDI (electronic data interchange)
D) ERP (enterprise resource planning)
Q:
Which of the following is NOT a major reason that companies adopt IT systems?
A) maintaining effective arms' length relationships with customers
B) producing high-quality products quickly and efficiently
C) communicating effectively with suppliers
D) managing inventory levels proficiently
Q:
________ is the measuring of performance so that companies can respond appropriately to changing conditions.
A) Coordination
B) Configuration
C) Control
D) Compatibility
Q:
________ is the linking or integrating of activities into a unified system.
A) Control
B) Coordination
C) Configuration
D) Compatibility
Q:
Deciding whether to establish production facilities in many different countries or in one centralized location is part of the ________.
A) cultural matrix
B) Six Sigma process
C) manufacturing configuration
D) innovation matrix
Q:
Some companies select locations in different countries to specialize in the production of parts or final goods, which is known as ________.
A) centralized manufacturing
B) the multidomestic approach
C) offshore manufacturing
D) rationalization
Q:
A multidomestic configuration is most important when ________.
A) demand in individual countries decreases significantly
B) exporting is the company's main strategy
C) demand in individual countries becomes significant
D) low-priced, standardized products are available
Q:
Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe. Roland is most likely using a ________ manufacturing strategy.
A) centralized
B) regional
C) global
D) country-specific
Q:
Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy?
A) regional manufacturing
B) centralized manufacturing
C) multidomestic manufacturing
D) multicultural manufacturing
Q:
The manufacturing plants of Orion Computers are located closer to customers rather than in low-wage areas. What is the most likely reason for this strategy?
A) competitor locations in emerging markets
B) overseas producers with innovative designs
C) customer demand for dependability
D) diversification of product lines
Q:
Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries?
A) language barriers
B) overabundance of skilled and educated workers
C) lack of inventory
D) shipping distances
Q:
Bocce Shoes, an Italian firm, set up a production facility in Vietnam to manufacture the firm's line of athletic shoes. Bocce is most likely using a (n) ________ strategy.
A) dependability
B) flexibility
C) innovation
D) efficiency/cost
Q:
________ manufacturing is any manufacturing that takes place in a country different from the home country.
A) Offshore
B) Multidomestic
C) Cost-minimization
D) Outsourcing
Q:
A ________ takes into account the complete costs of ownership, such as storing and transporting inventory, and of disposal.
A) total cost analysis
B) cost-benefit analysis
C) make-or-buy decision
D) flexibility strategy
Q:
________ strategies and the drive for global efficiencies force MNEs to establish economies of scale in manufacturing.
A) Cost
B) Quality control
C) Cost-minimization
D) Flexibility
Q:
The ability of the production process to make different kinds of products and to adjust the volume of output is known as ________.
A) quality control
B) flexibility
C) dependability
D) innovation
Q:
Gates Manufacturing is striving to improve its performance reliability, speed of delivery, and product reliability. Gates is most likely focusing on a(n) ________ strategy.
A) flexibility
B) innovation
C) dependability
D) quality
Q:
In the context of manufacturing strategy, the degree of consistency between the foreign investment decision and the company's competitive strategy is known as ________.
A) compatibility
B) coordination
C) control
D) configuration
Q:
Which of the following best describes a major difference between supply chain management and logistics?
A) Supply chain management involves handling suppliers and customers.
B) Logistics involves longer distances and international distribution networks.
C) Supply chain management focuses on transportation and the storage of goods.
D) Logistics only encompasses the outbound flow of products and materials.
Q:
Inbound logistics is also known as ________.
A) internal logistics
B) materials management
C) the internal supply chain
D) value-added management
Q:
Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods. Jordan is most likely a manager involved with ________.
A) quality control
B) offshoring
C) logistics
D) inventory management