QUESTION Which of the following is the initial reason for the establishment of a foreign production facility? A. Employee turnover is high. B. Products are not labor-intensive. C. Inventory turnover is low. D. Exchange rate fluctuations are high. E. Labor costs are low. ANSWER E
Date: September 3rd, 2020
QUESTION The concept that as plant output expands, unit costs decrease, is known as: A. minimum efficient scale. B. lean production. C. Six Sigma. D. economies of scale. E. total quality management. ANSWER D
Date: September 3rd, 2020
QUESTION A firm with a wide product variety will find it: A. difficult to achieve shorter product runs. B. difficult to increase its product sales. C. difficult to reduce its unit costs. D. easy to realize economies of scale. E. easy to reach optimum production efficiency. ANSWER C
Date: September 3rd, 2020
QUESTION Producing a standardized product in large volumes will: 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. ANSWER B
Date: September 3rd, 2020
QUESTION Adopting flexible manufacturing technology to produce a wide variety of end products results in: A. increased setup times for complex equipment. B. increased utilization of individual machines. C. reduced quality control. D. increased unit cost of products. E. lesser need for scheduling. ANSWER B
Date: September 3rd, 2020
QUESTION Which of the following statements is true about minimum efficient scale of output? A. With lesser utilization of capital equipment, the chances of a firm realizing economies of scale increases. B. A plant must avoid operating at the minimum efficient scale of output to realize all major plant-level scale economies. C. When the minimum […]
Date: September 3rd, 2020
QUESTION Which of the following is a consequence of a low minimum efficient scale? A. Preventing a firm from utilizing capital equipment fully B. Necessitating centralized production in a single location or a limited number of locations C. Preventing a firm from accommodating demands for local responsiveness D. Increasing the unit cost of products E. […]
Date: September 3rd, 2020
QUESTION Which of the following is an objective of lean production? 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 output […]
Date: September 3rd, 2020
QUESTION Which of the following is a consequence of using flexible machine cells? A. It fails to adapt to the production of different products. B. It generally results in stockpiles of partly finished products. C. It improves capacity utilization and reduces wastes. D. It increases setup time for complex equipment. E. It adds to the […]
Date: September 3rd, 2020
QUESTION Which of the following is an implication of a mass production system? 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 […]
Date: September 3rd, 2020
