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Module C Global Operations and Supply Chain Management Answer
Key
True / False Questions
1.
Three-dimensional (3D) printing facilitates just-in-time production close to the place of
assembly or sale and reduces the need for large production runs and the time and money
required for transporting and warehousing of products.
2.
According to the text, outsourcing is hiring others to do noncore activities.
3.
According to the text, the process of coordinating and integrating the flow of materials,
information, finances, and services within and among companies in the value chain is
called operations management.
4.
Because inventory is carried at each stage in the supply chain, and because inventory ties
up money, it has been argued that the ultimate goal of effective supply chain management
systems is to reduce inventory.
5.
According to the text, shorter and less predictable product life cycles have placed reduced
emphasis on supply chains and their performance.
6.
The "over-the-wall" approach to product design involves an initial step in which the
designers prepare the product's design, followed by sending the newly created design to
the company's manufacturing engineers.
7.
According to the text, a concurrent engineering approach to design promotes cross-
functional participation in the design process and thereby helps to identify and avoid many
of the potential sourcing, manufacturing, and other difficulties that can be associated with
a particular design.
8.
The primary reason for sourcing globally is to obtain lower prices.
9.
Companies engage in outsourcing when they make the decision to source internationally.
10.
When possible, it is better for companies to initially outsource complex activities to
achieve better cost benefits.
11.
In U.S. industry, the proportion of purchased materials in the overall cost of goods sold has
been rising for several decades.
12.
While indirect production-oriented goods have been the focus of management attention
for many years, the purchasing of goods and services that are part of finished goods—
termed indirect procurement—is also critical.
13.
Emerging industry-based business-to-business (B2B) exchanges can help optimize the
supply chain across an entire network of organizations, not merely within a single
company.
14.
For purchases of capital goods such as manufacturing equipment, many U.S. buying
organizations now use "business-cycle costing" to analyze purchasing decisions.
15.
International freight, insurance, and packing can add as much as 25 to 30 percent to the
quoted price, depending on the sales term used.
16.
For just-in-time (JIT) to be successful, manufacturers have to have the cooperation of
their suppliers.
17.
Total quality management is a companywide management approach to ensure quantity
products throughout the organization.
18.
Synchronous production is superior to the just-in-time production system because it is a
balanced system in which the capacities of all operations are equal.
19.
Mass customization is usually appropriate in situations where there is the potential for
delaying the task of differentiating the product for a particular customer until the last
possible point in the supply network.
20.
Logistics refers to managerial functions associated with the movement of raw materials
and work in progress, but not finished goods.
21.
Packaging and transportation requirements for a product can significantly influence
logistics costs, and these factors should be addressed during the post-design steps in a
company's value chain.
22.
According to the text, Zara's strategy of speed and flexibility has enabled the company to
eliminate inventory.
23.
Standards are documented agreements containing general guidelines, rules, or definitions
of the characteristics of a product, process, or service.
24.
Unless a product or service is purchased from a company that is registered to the
appropriate ISO 9000 standard, a buyer cannot be assured that the quality of what was
received will be what was expected.
25.
Worldwide uniformity or standardization in manufacturing methods hinders headquarters'
effectiveness in keeping production specifications current.
26.
When production equipment is similar, home office control of quality in foreign affiliates is
more difficult because management must ensure that all plants adhere to the same
standard.
27.
Generally, it is easier for international firms to standardize the concepts of total quality
management and synchronous manufacturing in their foreign plants than it is to
standardize the actual production facilities.
28.
Backward vertical integration establishes facilities to manufacture inputs used in the
production of a firm's final product.
18-15
29.
Production methods between capital- and labor-intensive methods are classified as
intermediate technology.
30.
The local manufacturing organization is usually integrated vertically to a greater extent
than is the parent company.
Multiple Choice Questions
31.
Which of the following is not true about 3D printing?
32.
Hiring others to perform some of the noncore activities and decision making in a
company's value chain, rather than having the company and its employees continue to
perform these tasks, is
33.
The process of coordinating and integrating the flow of materials, information, finances,
and services within and among companies in the value chain from suppliers to the
ultimate consumer is often referred to as
34.
Activities that are involved in producing a company's products and services and how these
activities are linked together are often referred to as
35.
A typical company's supply chain costs can represent more than ____ percent of assets.
36.
A typical company's supply chain costs can represent more than ____ percent of a
company's revenues.
37.
According to the text, it has been argued that the ultimate goal of effective supply chain
management systems is to
38.
According to the text, increased emphasis on the achievement of effective supply chain
performance has resulted from all of the following except
