QUESTION 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: A. sets up a production facility that is well suited for mass […]
QUESTION Which of the following statements is true about performing a manufacturing activity in several locations at once? A. A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high. B. Performing a manufacturing activity in several locations makes it difficult for a firm to […]
QUESTION Which of the following statements is true of flexible manufacturing technologies? 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 […]
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
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
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
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
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 […]
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. […]
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 […]
