Question 1

The level of output at which most plant-level scale economies are exhausted is referred to as the minimum efficient scale of output.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements about Six Sigma is true?

Accepted Answer

A)  It is a statistically based philosophy.
B)  It is easily possible for a company to achieve Six Sigma perfection.
C)  At six sigma,a production process will have 66 defects per million units.
D)  At six sigma,a production process would be 100 percent accurate.E) None of the above
F) All of the above

Question 3

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Accepted Answer

The JIT system was developed by Japanese...

Question 4

According to the concept of economies of scale:

Accepted Answer

A)  as plant output reduces,unit costs decrease.
B)  as plant output expands,unit costs increase.
C)  as plant output reduces,unit costs remain static.
D)  as plant output expands,unit costs decrease.E) B) and C)
F) C) and D)

Question 5

Strategic alliances can effectively limit a firm's strategic flexibility.

Accepted Answer

A) True 
 B)False  True

Question 6

How can firms attain tight coordination between different stages in the production process?

Accepted Answer

A)  By using information technology
B)  By lowering the costs of value creation
C)  By implementing ISO 9000
D)  By minimum efficient scale of outputE) C) and D)
F) A) and D)

Question 7

According to the concept of economies of scale what is the best way to achieve high efficiency and low unit costs?

Accepted Answer

A)  Customizing products for each individual market
B)  Mass producing standardized outputs
C)  Concentrating on production of small volumes of products
D)  Increasing the product variety dramaticallyE) B) and C)
F) C) and D)

Question 8

A _____ is a grouping of various types of machinery,a common materials handler,and a centralized cell controller.

Accepted Answer

A)  flexible machine cell
B)  mass customization policy
C)  lean production system
D)  minimum efficient scale clusterE) A) and C)
F) None of the above

Question 9

Discuss the effect of country factors on the decision of where to locate production?

Accepted Answer

All other things being equal,a firm shou...

Question 10

At six sigma,a production process would be 99.99966 percent accurate,creating just _____.

Accepted Answer

A)  3.4 defects per hundred thousand units
B)  3.4 defects per million units
C)  34 defects per million units
D)  6.8 defects per million unitsE) A) and B)
F) A) and D) B

Question 11

Decisions a firm must make about whether to perform a certain value creation activity themselves,or outsource it to another entity are best known as:

Accepted Answer

A)  outsource potential decisions.
B)  in-house potential decisions.
C)  make-or-buy decisions.
D)  integration decisions.E) B) and C)
F) All of the above

Question 12

A grouping of various types of machinery,a common materials handler,and a centralized cell controller is a flexible machine cell.

Accepted Answer

A) True 
 B)False

Question 13

Flexible manufacturing technology is also known as:

Accepted Answer

A)  mass customization.
B)  lean production.
C)  flexible machine cells.
D)  minimum efficient scale.E) None of the above
F) A) and C)

Question 14

With _____,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

Accepted Answer

A)  a CAD system
B)  a JIT system
C)  a CAM system
D)  an EDI systemE) A) and B)
F) A) and C)

Question 15

The term _____ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product customization.

Accepted Answer

A)  assembly-line-like customization
B)  economies of customization
C)  mass customization
D)  standardized customizationE) None of the above
F) All of the above

Question 16

Being too dependent on one location is particularly risky because of:

Accepted Answer

A)  floating exchange rates.
B)  fixed exchange rates.
C)  lack of movement in currencies.
D)  static exchange rates.E) A) and D)
F) None of the above

Question 17

Concentrating production at an optimal location is more attractive when a product serves universal needs.

Accepted Answer

A) True 
 B)False

Question 18

The creation of a global web of value creation activities is the result of:

Accepted Answer

A)  location economies.
B)  diseconomies of scale.
C)  shortage of skilled labor.
D)  informal trade barriers.E) A) and B)
F) A) and C)

Question 19

The smaller the minimum efficient scale of a plant relative to total global demand,the greater the argument for centralizing production in a single location or a limited number of locations.

Accepted Answer

A) True 
 B)False

Question 20

The concentration of production makes most sense when:

Accepted Answer

A)  volatility in important exchange rates is expected.
B)  the product's value-to-weight ratio is high.
C)  location externalities are not important.
D)  trade barriers are high.E) A) and C)
F) B) and C) B

Exam 16: Global Production, Outsourcing, and Logistics

The level of output at which most plant-level scale economies are exhausted is referred to as the minimum efficient scale of output.

Correct AnswerverifiedShow Answer

Which of the following statements about Six Sigma is true?

Correct AnswerverifiedShow Answer

Explain why a firm might adopt the just-in-time system.Why might a firm choose a different inventory system?

Correct AnswerverifiedThe JIT system was developed by Japanese...View AnswerShow Answer

According to the concept of economies of scale:

Correct AnswerverifiedShow Answer

Strategic alliances can effectively limit a firm's strategic flexibility.

Correct AnswerverifiedTrue

How can firms attain tight coordination between different stages in the production process?

Correct AnswerverifiedShow Answer

According to the concept of economies of scale what is the best way to achieve high efficiency and low unit costs?

Correct AnswerverifiedShow Answer

A _____ is a grouping of various types of machinery,a common materials handler,and a centralized cell controller.

Correct AnswerverifiedShow Answer

Discuss the effect of country factors on the decision of where to locate production?

Correct AnswerverifiedAll other things being equal,a firm shou...View AnswerShow Answer

At six sigma,a production process would be 99.99966 percent accurate,creating just _____.

Correct AnswerverifiedB

Decisions a firm must make about whether to perform a certain value creation activity themselves,or outsource it to another entity are best known as:

Correct AnswerverifiedShow Answer

A grouping of various types of machinery,a common materials handler,and a centralized cell controller is a flexible machine cell.

Correct AnswerverifiedShow Answer

Flexible manufacturing technology is also known as:

Correct AnswerverifiedShow Answer

With _____,suppliers,shippers,and the purchasing firm can communicate with each other with no time delay.

Correct AnswerverifiedShow Answer

The term _____ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product customization.

Correct AnswerverifiedShow Answer

Being too dependent on one location is particularly risky because of:

Correct AnswerverifiedShow Answer

Concentrating production at an optimal location is more attractive when a product serves universal needs.

Correct AnswerverifiedShow Answer

The creation of a global web of value creation activities is the result of:

Correct AnswerverifiedShow Answer

The smaller the minimum efficient scale of a plant relative to total global demand,the greater the argument for centralizing production in a single location or a limited number of locations.

Correct AnswerverifiedShow Answer

The concentration of production makes most sense when:

Correct AnswerverifiedB

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The JIT system was developed by Japanese...
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True

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All other things being equal,a firm shou...
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B

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B