70) An advantage of engaging in in–house production of products and components is that
A) the firm will have fewer subunits to control by making products in-house.
B) it will help the firm capture more orders from other countries.
C) it enables a firm to protect the proprietary technologies that it has.
D) firms can make better use of the location advantages of certain countries.
71) An advantage of buying component parts, or even an entire product, from independent
suppliers is that
A) it can make planning, coordination, and scheduling of adjacent processes easier for the firm.
B) the firm can strategically manage inventory.
C) the firm will be able to maintain strict control over its proprietary technology.
D) the firm will have access to superior quality raw materials and will deliver high quality
products.
72) Cost and ________ are the two main drivers behind make-or-buy choices made by global
companies when they engage in global supply chains.
A) production capacity
B) assurance of continual supply
C) quality control
D) control
73) ________ can be viewed as the decision-making process regarding the raw materials,
work-in-process (component parts), and finished goods inventory for a multinational corporation.
A) Global supply chain management
B) Global inventory management
C) Global corporate management
D) Global sourcing arrangements
74) This type of facility positions and allows customization of products for delivery to worldwide
wholesalers or retailers or directly to consumers anywhere in the world.
A) logistics center
B) lead factory
C) global distribution center
D) source factory
75) ________ is the outer packaging envelope that allows for easier handling or product transfer
among international suppliers, manufacturers, distribution centers, retailers, and any other
intermediaries in the global supply chain.
A) Primary packaging
B) Performance packaging
C) Secondary packaging
D) Unit–load packaging
76) Packaging, which comes in all shapes, sizes, forms, and uses, can be divided into three
different types
A) primary, secondary, and transit.
B) customer, retailer, and distributor.
C) primary, secondary, and tertiary.
D) first level, second level, and third level.
77) ________ refers to the movement of raw material, component parts, and finished goods
throughout the global supply chain.
A) Distribution
B) Transportation
C) Sourcing
D) Logistics
78) The process of planning, implementing, and controlling the efficient, cost–effective flow of
raw materials, in–process inventory, finished goods, and related information from the point of
consumption to the point of origin for the purpose of recapturing value or proper disposal is called
A) transportation.
B) distribution.
C) reverse logistics.
D) global sourcing.
79) Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1)
perform, (2) protect, and (3) inform. Which of the following is one of the functions of the
“perform” group?
A) the package‘s ability to preserve the products to maintain their freshness or newness
B) the package’s ability to provide the necessary security and safety to ensure that the products
reach their end destination in their intended shape
C) the package’s ability to contain the products properly
D) the ability of the product in the package to handle being transported between nodes in the global
supply chain
80) There are five strategic levels for global purchasing that can be undertaken by a global
company. At which level do companies engage in international purchasing activities as part of the
firm’s overall supply chain management strategy?
A) Level I
B) Level II
C) Level III
D) Level IV
81) There are five strategic levels for global purchasing that can be undertaken by a global
company. At which level do companies engage in global purchasing activities that are integrated
across worldwide locations and functional groups?
A) Level II
B) Level III
C) Level IV
D) Level V
82) When a multinational corporation buys products or services from one of its suppliers that
produces them somewhere else, whether domestically or globally, it is referred to as
A) offshoring.
B) insourcing.
C) outsourcing.
D) co-sourcing.
83) A multinational corporation uses both its own employees from inside the firm and an external
supplier to perform certain tasks, often in concert with each other.
A) insourcing
B) offshore outsourcing
C) nearshoring
D) co-sourcing
84) The major cost saving associated with JIT systems comes from
A) early delivery of raw materials to production.
B) decentralization of manufacturing.
C) speeding up inventory turnover.
D) reduced spending on CRM activities.
85) Just–in-time inventory systems
A) are used when procurement is not organized.
B) require large warehouses for storage.
C) economize on inventory holding costs.
D) maintain large buffer for inventory.
86) What is a drawback of a just–in-time system?
A) Transport costs are high when using a just–in-time system.
B) It leaves a firm without a buffer stock of inventory.
C) It increases the warranty costs associated with products.
D) It leaves a firm with high scrap costs associated with defective products.
87) With ________ system, suppliers, shippers, and the purchasing firm can communicate with
each other with no time delay.
A) a CAD
B) a JIT
C) a CAM
D) an EDI