32. 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.
33. Firms typically use electronic data interchange (EDI) via the Internet to coordinate the
flow of materials into manufacturing, through manufacturing, and out to customers.
34. Good electronic data interchange systems provide corporate-level managers with the
information they need for coordinating and controlling decentralized materials management
groups.
35. Proprietary software solutions to implement electronic data interchange systems now
dominate the market for global supply chain management software.
36. Which of the following is true about production and logistics in international
businesses?
37. _____ refers to the activity that controls the transmission of physical materials through
the value chain, from procurement through production and into distribution.
38. Champion Works Inc. is an animation company, headquartered in the U.S. The CEO of the
company has decided to outsource some of the production to companies in developing countries,
as the firm seems to be losing out on its competitive advantage. This decision to shift functions
or processes to less developed countries is due to their:
39. An important objective shared by both production and logistics functions of an
international firm is to:
40. A second strategic objective shared by production and logistics is to increase product
quality by eliminating defective products from both the supply chain and the manufacturing
process. In this context, quality means _____, implying that the product has no defects and
performs well.
41. Which of the following is a consequence of improved quality control?
42. The effect of improved quality control is to lower the costs of value creation by reducing
production and:
43. Manufacturing firms should typically aim at lowering the costs of value creation by:
44. The principal tool that most managers now use to increase the reliability of their product
offering is _____, a statistically based methodology for improving product quality. It is a direct
descendant of the total quality management philosophy.
45. The Six Sigma methodology is a direct descendant of the _____ philosophy that was
widely adopted, first by Japanese companies and then American companies during the 1980s and
early 1990s.
46. The total quality management philosophy was developed by a number of American
consultants. Which of the following individuals is one of them?
47. Which of the following is true of W. Edward Deming’s beliefs about the total quality
management philosophy?
48. Which of the following companies adheres to the total quality management steps
identified by W. Edward Deming?
49. Which of the following best describes the relationship between the number of “sigmas”
and the number of errors?
50. A statistically based philosophy that aims to reduce defects, boost productivity, eliminate
waste, and cut costs throughout a company is known as _____.
51. Six Sigma refers to a statistically based philosophy that aims to:
52. Which of the following statements is true of Six Sigma?
53. Pink Polka Fashion Inc., a multinational clothing brand, has plans to expand in the
European Union (EU) marketplace. In order to be able to do so, the EU requires that the: