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 […]
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 […]
QUESTION Industrial products have few national differences in consumer taste and preference, hence the need for local responsiveness is reduced for such products Indicate whether the statement is true or false. ANSWER TRUE A product feature that can influence location decisions is whether the product serves universal needs, needs that are the same all […]
QUESTION Other things being equal, when fixed costs are substantial and minimum efficient scale of production is high, the arguments for concentrating production at a few choice locations are strong. Indicate whether the statement is true or false. ANSWER TRUE A number of technological factors support the economic arguments for concentrating production facilities in […]
QUESTION With flexible manufacturing technologies, a firm can manufacture products customized to various national markets at a single factory sited at the optimal location but will nevertheless incur a significant cost penalty. Indicate whether the statement is true or false. ANSWER FALSE Besides improving efficiency and lowering costs, flexible manufacturing technologies enable companies to […]
QUESTION 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 Indicate whether the statement is true or false. ANSWER TRUE The basic philosophy behind just-in-time (JIT) inventory systems is to […]
QUESTION In terms of Six Sigma, the higher the number of “sigmas,” the greater the number of errors. Indicate whether the statement is true or false. ANSWER FALSE Six Sigma, the modern successor to total quality management, is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs […]
QUESTION Which of the following refers to the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution? A. Promotion B. Recruitment C. Logistics D. Benchmarking E. Inshoring ANSWER C
QUESTION In international business, when consumer demand is prone to large and unpredictable shifts, the firm that can adapt most quickly to these shifts will gain an advantage Indicate whether the statement is true or false. ANSWER TRUE In international business, production and supply chain management must be able to respond quickly to shifts […]
QUESTION Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software Indicate whether the statement is true or false. ANSWER FALSE Before the emergence of the Internet as a major communication medium, firms and their suppliers normally had to purchase expensive proprietary software solutions to […]
