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 […]
QUESTION The concept of economies of scale tells us that as plant output expands, unit costs decrease Indicate whether the statement is true or false. ANSWER TRUE In terms of international business, the concept of economies of scale tells us that as plant output expands, unit costs decrease. The reasons include the greater utilization […]
QUESTION Firms now typically use electronic data interchange (EDI) via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers Indicate whether the statement is true or false. ANSWER TRUE Firms now typically use some form of supply chain information system to coordinate the flow of materials into […]
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.
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
