QUESTION Which of the following is a drawback of ISO 9000 certification? A. It is bureaucratic and costly for many firms. B. It is an impossible standard to achieve. C. It is losing its prominence in international business. D. It is ineffective in improving processes. E. It is ineffective in bringing about quality improvement. […]
QUESTION Which of the following is a consequence of improved quality control? A. Greater warranty costs B. Higher scrap costs C. Direct reduction in unit costs D. Decreased productivity E. Reduced inventory turnover ANSWER C
QUESTION Six Sigma refers to a statistically based philosophy that aims to: A. increase defects. B. lower productivity. C. increase the costs of value creation. D. eliminate waste. E. increase cost per unit. ANSWER D
QUESTION Champion Works Inc. is an animation company, headquartered in the United States. The CEO of the company has decided to outsource some of the production to companies in developing countries, as the firm seems to be losing out on its competitive advantage. This decision to shift functions or processes to less developed countries is […]
QUESTION Which of the following is a consequence of changes in exchange rates that result in appreciation of the local currency? A. More foreign direct investment into the country B. Decrease in the dollar cost of products exported from the country C. Diminishing of a country’s attractiveness as a manufacturing base D. Transformation of the […]
QUESTION An important objective shared by both production and logistics functions of an international firm is to: A. increase profits by lowering quality. B. increase foreign competition. C. lower costs by dispersing production activities. D. decrease inventory turnover. E. stock excess inventory on hand. ANSWER C
QUESTION Which of the following location externalities is favorable for foreign direct investment in a country? A. Presence of supporting industries B. Market with many other foreign competitors C. Lack of intellectual property rights laws D. Presence of a communist political system E. Appreciation of local currency ANSWER A
QUESTION A second strategic objective shared by production and supply chain management is to increase product quality. In this context, quality means: A. affordability. B. flexibility. C. reliability. D. adaptability. E. patentability. ANSWER C
QUESTION 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: A. […]
QUESTION The effect of improved quality control is to lower the costs of value creation by reducing production costs and: A. decreasing inventory turnover. B. decreasing after-sales service costs. C. increasing scrap costs. D. increasing warranty costs. E. increasing time spent on fixing defects. ANSWER B
