Question 1

In recent years, the trend among U.S. firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Accepted Answer

A) True 
 B)False

Question 2

A second strategic objective shared by production and supply chain management is to increase product quality. In this context, quality means:

Accepted Answer

A)  affordability.
B)  flexibility.
C)  reliability.
D)  adaptability.
E)  patentability.F) C) and E)
G) C) and D)

Question 3

Which of the following holds true for products with low value-to-weight ratios?

Accepted Answer

A)  They are relatively expensive.
B)  They do not weigh very much.
C)  Their transportation costs account for a very small percentage of total costs.
D)  It is advisable to manufacture them in multiple locations close to major markets.
E)  Examples of these products are electronic components and pharmaceuticals.F) A) and E)
G) A) and B)

Question 4

The concept of economies of scale tells us that as plant output expands, unit costs decrease.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Describe the Six Sigma methodology.

Accepted Answer

Six Sigma, the modern successor to total...

Question 7

Which of the following is true of products with high value-to-weight ratios?

Accepted Answer

A)  They are expensive to transport.
B)  They tend to increase in weight after processing.
C)  They tend to be restricted under trade barriers.
D)  They are expensive and do not weigh very much.
E)  They have a low inventory turnover.F) A) and E)
G) A) and B)

Question 8

Other things being equal, when fixed costs are substantial and minimum efficient scale of production is high, the arguments for concentrating production at a few choice locations are strong.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Accepted Answer

A)  Outsourcing production to developing countries
B)  Inshoring production into the home country
C)  Selling product patents and technology to competitors
D)  Refraining from international trade
E)  Establishing top-to-bottom manufacturing operationsF) None of the above
G) A) and B)

Question 10

Which of the following is an objective of lean production?

Accepted Answer

A)  Reducing the quality of a product to keep unit costs low
B)  Reducing setup times for complex equipment
C)  Replacing product variety with standardized output
D)  Decreasing utilization of individual machines through scheduling
E)  Increasing the level of minimum efficient scale of outputF) None of the above
G) B) and E)

Question 11

Uniway Technologies Inc. has based its manufacturing units in the country of Lanthania. The country's stable economic and political environment has helped the firm gain competitive advantage by lowering its production costs and improving product quality. Other things being equal, the benefits realized from such a strategy can be typically referred to as:

Accepted Answer

A)  economies of scope.
B)  location economies.
C)  diseconomies of scale.
D)  economies of power.
E)  learning economies.F) C) and D)
G) A) and B)

Question 12

Which of the following is an implication of a mass production system?

Accepted Answer

A)  It results in short production runs.
B)  It fails to realize economies of scale.
C)  It reduces the number of defects and eliminates waste.
D)  It helps to accommodate consumer preferences for product diversity.
E)  It creates massive inventories that have to be stored in large warehouses.F) A) and D)
G) B) and E)

Exam 15: Global Production and Supply Chain Management

A second strategic objective shared by production and supply chain management is to increase product quality. In this context, quality means:

Correct Answer
verified

Which of the following is true of products with high value-to-weight ratios?

Correct Answer
verified

Other things being equal, when fixed costs are substantial and minimum efficient scale of production is high, the arguments for concentrating production at a few choice locations are strong.

Correct Answer
verified

In recent years, the trend among U.S. firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Correct Answer
verified

Which of the following is an implication of a mass production system?

Correct Answer
verified

Describe the Six Sigma methodology.

Correct Answer
verified
Six Sigma, the modern successor to total...
View Answer

Correct Answer
verified

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

Correct Answer
verified
The level of output at which most plant-...
View Answer

Which of the following holds true for products with low value-to-weight ratios?

Correct Answer
verified

The concept of economies of scale tells us that as plant output expands, unit costs decrease.

Correct Answer
verified

Which of the following is an objective of lean production?

Correct Answer
verified

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

A second strategic objective shared by production and supply chain management is to increase product quality. In this context, quality means:

Correct AnswerverifiedShow Answer

Which of the following is true of products with high value-to-weight ratios?

Correct AnswerverifiedShow Answer

Other things being equal, when fixed costs are substantial and minimum efficient scale of production is high, the arguments for concentrating production at a few choice locations are strong.

Correct AnswerverifiedShow Answer

In recent years, the trend among U.S. firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Correct AnswerverifiedShow Answer

Which of the following is an implication of a mass production system?

Correct AnswerverifiedShow Answer

Describe the Six Sigma methodology.

Correct AnswerverifiedSix Sigma, the modern successor to total...View AnswerShow Answer

Correct AnswerverifiedShow 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

Which of the following holds true for products with low value-to-weight ratios?

Correct AnswerverifiedShow Answer

The concept of economies of scale tells us that as plant output expands, unit costs decrease.

Correct AnswerverifiedShow Answer

Which of the following is an objective of lean production?

Correct AnswerverifiedShow Answer

Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Six Sigma, the modern successor to total...
View Answer

Correct Answer
verified

Correct Answer
verified
The level of output at which most plant-...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified