QUESTION Which of the following is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company? A. ISO 9000 B. Just-in-time C. Six Sigma D. Lean production E. Total quality management ANSWER C
Date: September 3rd, 2020
QUESTION Currency appreciation can transform a low-cost location into a high-cost location. Indicate whether the statement is true or false. ANSWER TRUE Adverse changes in exchange rates can quickly alter a country’s attractiveness as a manufacturing base. Currency appreciation can transform a low-cost location into a high-cost location.
Date: September 3rd, 2020
QUESTION The drawback of a just-in-time inventory system is that it leaves a firm with excess unsold inventory that it has to write off against earnings or price low to sell. Indicate whether the statement is true or false. ANSWER FALSE The drawback of a just-in-time inventory system is that it leaves a firm […]
Date: September 3rd, 2020
QUESTION In international business, a relatively high level of fixed costs can make it economical to perform a particular activity in several locations at once. Indicate whether the statement is true or false. ANSWER FALSE In international business, a relatively low level of fixed costs can make it economical to perform a particular activity […]
Date: September 3rd, 2020
QUESTION Flexible machine cells cannot be used for mass customization Indicate whether the statement is true or false. ANSWER FALSE The term mass customization has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile two goals that were once thought to be incompatible—low cost and product customization. Flexible […]
Date: September 3rd, 2020
QUESTION A wide product variety makes it easier for a firm to increase its production efficiency and thus reduce its unit costs. Indicate whether the statement is true or false. ANSWER FALSE A wide product variety makes it difficult for a company to increase its production efficiency and thus reduce its unit costs. According […]
Date: September 3rd, 2020
QUESTION Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output. Indicate whether the statement is true or false. ANSWER TRUE The term flexible manufacturing technology—or lean production, as it […]
Date: September 3rd, 2020
QUESTION 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. Indicate whether the statement is true or false. ANSWER FALSE The concept of economies of scale tells us […]
Date: September 3rd, 2020
QUESTION With the advent of flexible manufacturing technologies and mass customization, establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive. Indicate whether the statement is true or false. ANSWER TRUE Most important for international business, flexible manufacturing technologies can help a firm customize products for different […]
Date: September 3rd, 2020
QUESTION 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. Indicate whether the statement is true or false. ANSWER FALSE A product’s value-to-weight ratio affects location decisions because of its influence on transportation […]
Date: September 3rd, 2020
