Question 1

The objectives of reducing costs and increasing quality in a firm are independent of each other.

Accepted Answer

A) True 
 B)False

Question 2

Rinker Audio Products sources raw materials from six different suppliers around the world.These inputs are stored in Rinker-owned warehouses close to its manufacturing facility in Canton,Ohio.What part of the global supply chain do the suppliers and inputs warehouse together constitute?

Accepted Answer

A)  downstream
B)  manufacturing
C)  upstream
D)  value chain
E)  processF) D) and E)
G) C) and D)

Question 3

Which of the following statements is true of industrial products such as steel?

Accepted Answer

A)  They serve needs that are the same all over the world.
B)  They have drastic national differences in consumer taste and preference.
C)  The need for local responsiveness for these products is more than consumer products.
D)  It makes sense to produce these products in multiple locations close to major markets.
E)  A plant must operate at the highest minimum efficient scale of output for these products.F) C) and E)
G) C) and D)

Question 4

Under a just-in-time inventory system,a company can reduce the amount of working capital it needs to finance inventory,freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

Accepted Answer

A) True 
 B)False

Question 5

Rinker Audio Products has had recurring problems in its product quality.The company's manufacturing vice president suggests that Rinker use a statistically based methodology that aims to reduce defects,boost productivity,eliminate waste,and cut costs throughout the company and whose ultimate goal would be to have just 3.4 defects per million units that Rinker produces.What is the methodology that the manufacturing vice president is considering?

Accepted Answer

A)  Six Sigma
B)  lean manufacturing
C)  just-in-time inventory
D)  ISO 9000
E)  mass customizationF) None of the above
G) B) and C)

Question 6

In terms of minimum efficient scale of output,the "unit cost curve" rises 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) True 
 B)False

Question 7

Producing a standardized product in large volumes will

Accepted Answer

A)  result in diseconomies of scale.
B)  increase production efficiency.
C)  increase production costs.
D)  result in shorter production runs.
E)  result in a high minimum efficient scale of output.F) A) and B)
G) C) and D)

Question 8

Which of the following includes a grouping of various types of machinery,a common materials handler,and a computer to control the production of a family of parts or products?

Accepted Answer

A)  specialized asset
B)  dynamic capability
C)  turnkey project
D)  flexible machine cell
E)  just-in-time inventoryF) B) and E)
G) B) and D)

Question 9

Rinker Audio Products stores its finished goods in various warehouses around the United States and in international locations.The company's sales function coordinates with 47 wholesalers who,in turn,ensure that Rinker's products are available in 750 retail outlets worldwide.When taken together,what portion of Rinker's global supply chain do its distributors and retailers constitute?

Accepted Answer

A)  upstream
B)  horizontal
C)  downstream
D)  inward-facing
E)  processF) A) and C)
G) A) and D)

Question 10

Since refined sugar has a low value-to-weight ratio,even if it is shipped halfway around the world,the transportation costs would account for a very small percentage of total costs.

Accepted Answer

A) True 
 B)False

Question 11

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 B)
G) B) and D)

Question 12

Rinker Audio Products has a fully-staffed purchasing department that procures various inputs.It also has various domestic manufacturing facilities that coordinate with the purchasing department.Rinker's distribution function coordinates the shipment of finished products.Taken together,Rinker Audio Products' purchasing,manufacturing,and distribution functions constitute the company's

Accepted Answer

A)  promotion.
B)  recruitment.
C)  logistics.
D)  benchmarking.
E)  inshoring.F) C) and E)
G) B) and E)

Question 13

Six Sigma refers to a statistically based philosophy that aims to

Accepted Answer

A)  increase defects.
B)  lower productivity.
C)  increase the costs of value creation.
D)  eliminate waste.
E)  increase cost per unit.F) C) and E)
G) B) and C)

Question 14

_____ is a statistically based philosophy that aims to reduce defects,boost productivity,eliminate waste,and cut costs throughout a company.

Accepted Answer

A)  ISO 9000
B)  Just-in-time
C)  Six Sigma
D)  Lean production
E)  UpstreamingF) A) and C)
G) None of the above

Question 15

Which of the following statements is true of flexible manufacturing technologies?

Accepted Answer

A)  They promote the idea of manufacturing in each major market.
B)  They fail to produce multiple models from the same line.
C)  They are used to reconcile the goals of large volumes and standardized output.
D)  They decrease the utilization of individual machines.
E)  They allow firms to customize products to national differences at a single facility.F) B) and D)
G) A) and C)

Question 16

Which of the following best describes the relationship between the number of "sigmas" and the number of errors?

Accepted Answer

A)  The higher the number of "sigmas," the greater the number of errors.
B)  If the number of "sigmas" is a positive value,then the number of errors is always a negative value.
C)  The higher the number of "sigmas," the smaller the number of errors.
D)  The number of "sigmas" is independent of the number of errors.
E)  If the number of "sigmas" is a negative value,then the number of errors is always positive.F) B) and E)
G) A) and E)

Question 17

Which of the following firms should spread its production over decentralized locations?

Accepted Answer

A)  Univion Inc.operates in an industry where national differences in political economy and culture have a substantial impact on its cost of production.
B)  Saturn Inc.operates in an industry where volatile fluctuations in important exchange rates are expected.
C)  Brew Technology manufactures industrial machines and equipment that serve universal needs.
D)  Gold Dreams Inc.customizes jewelry in precious metal and stones with the aid of flexible manufacturing technologies.
E)  Uniton Inc.uses a production technology that has high fixed costs and high minimum efficient scale.F) All of the above
G) A) and B)

Question 18

Amber Engineers Inc.wants to be able to customize products for different national markets and in turn increase its customer responsiveness.However,the fixed costs associated with its production are high.Hence,these functions will be performed most efficiently if Amber Engineers

Accepted Answer

A)  sets up a production facility that is well suited for mass production.
B)  establishes multiple manufacturing facilities in each major national market.
C)  increases each manufacturing unit's minimum efficient scale of output.
D)  adopts flexible manufacturing technologies to help achieve mass customization.
E)  locates its production unit in countries that have fluctuations in exchange rates.F) A) and B)
G) A) and C)

Question 19

When should a firm concentrate its production facilities in a centralized location?

Accepted Answer

A)  when the production technology has a low minimum efficient scale
B)  when the production technology has low fixed costs
C)  when important exchange rates are expected to remain relatively stable
D)  when flexible manufacturing technologies are unavailable
E)  when the product's value-to-weight ratio is lowF) A) and E)
G) A) and D)

Question 20

Manufacturing firms should typically aim at lowering the costs of value creation by

Accepted Answer

A)  decreasing inventory turnover.
B)  stocking huge amounts of inventory.
C)  lowering the quality of products.
D)  increasing after-sales services cost.
E)  reducing production costs.F) A) and E)
G) B) and D)

Exam 15: Global Production and Supply Chain Management

Which of the following best describes the relationship between the number of "sigmas" and the number of errors?

Correct Answer
verified

Which of the following includes a grouping of various types of machinery,a common materials handler,and a computer to control the production of a family of parts or products?

Correct Answer
verified

Which of the following firms should spread its production over decentralized locations?

Correct Answer
verified

Producing a standardized product in large volumes will

Correct Answer
verified

Rinker Audio Products sources raw materials from six different suppliers around the world.These inputs are stored in Rinker-owned warehouses close to its manufacturing facility in Canton,Ohio.What part of the global supply chain do the suppliers and inputs warehouse together constitute?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

In terms of minimum efficient scale of output,the "unit cost curve" rises 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

Correct Answer
verified

When should a firm concentrate its production facilities in a centralized location?

Correct Answer
verified

Which of the following statements is true of industrial products such as steel?

Correct Answer
verified

Since refined sugar has a low value-to-weight ratio,even if it is shipped halfway around the world,the transportation costs would account for a very small percentage of total costs.

Correct Answer
verified

Which of the following statements is true of flexible manufacturing technologies?

Correct Answer
verified

Six Sigma refers to a statistically based philosophy that aims to

Correct Answer
verified

The objectives of reducing costs and increasing quality in a firm are independent of each other.

Correct Answer
verified

_____ is a statistically based philosophy that aims to reduce defects,boost productivity,eliminate waste,and cut costs throughout a company.

Correct Answer
verified

Amber Engineers Inc.wants to be able to customize products for different national markets and in turn increase its customer responsiveness.However,the fixed costs associated with its production are high.Hence,these functions will be performed most efficiently if Amber Engineers

Correct Answer
verified

Manufacturing firms should typically aim at lowering the costs of value creation by

Correct Answer
verified

Under a just-in-time inventory system,a company can reduce the amount of working capital it needs to finance inventory,freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

Correct Answer
verified

Exam 15: Global Production and Supply Chain Management

Which of the following best describes the relationship between the number of "sigmas" and the number of errors?

Correct AnswerverifiedShow Answer

Which of the following includes a grouping of various types of machinery,a common materials handler,and a computer to control the production of a family of parts or products?

Correct AnswerverifiedShow Answer

Which of the following firms should spread its production over decentralized locations?

Correct AnswerverifiedShow Answer

Producing a standardized product in large volumes will

Correct AnswerverifiedShow Answer

Rinker Audio Products sources raw materials from six different suppliers around the world.These inputs are stored in Rinker-owned warehouses close to its manufacturing facility in Canton,Ohio.What part of the global supply chain do the suppliers and inputs warehouse together constitute?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In terms of minimum efficient scale of output,the "unit cost curve" rises with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When should a firm concentrate its production facilities in a centralized location?

Correct AnswerverifiedShow Answer

Which of the following statements is true of industrial products such as steel?

Correct AnswerverifiedShow Answer

Since refined sugar has a low value-to-weight ratio,even if it is shipped halfway around the world,the transportation costs would account for a very small percentage of total costs.

Correct AnswerverifiedShow Answer

Which of the following statements is true of flexible manufacturing technologies?

Correct AnswerverifiedShow Answer

Six Sigma refers to a statistically based philosophy that aims to

Correct AnswerverifiedShow Answer

The objectives of reducing costs and increasing quality in a firm are independent of each other.

Correct AnswerverifiedShow Answer

_____ is a statistically based philosophy that aims to reduce defects,boost productivity,eliminate waste,and cut costs throughout a company.

Correct AnswerverifiedShow Answer

Amber Engineers Inc.wants to be able to customize products for different national markets and in turn increase its customer responsiveness.However,the fixed costs associated with its production are high.Hence,these functions will be performed most efficiently if Amber Engineers

Correct AnswerverifiedShow Answer

Manufacturing firms should typically aim at lowering the costs of value creation by

Correct AnswerverifiedShow Answer

Under a just-in-time inventory system,a company can reduce the amount of working capital it needs to finance inventory,freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

Correct AnswerverifiedShow Answer

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