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A) automated machinery enables a high level of flexibility regarding product variety and
sizes.
B) general-purpose machines require a more narrow range of skills than might be
necessary for a special-purpose machine.
C) they have to choose between low-output specialized machinery and higher-output,
general-purpose machines.
D) computer-integrated manufacturing (CIM) systems permit economic batch quantity
to be reduced to one.
86) Skilled operators in developing countries could be trained in technical schools, but the
low prestige of such employment affects both the demand for and the supply of vocational
education. This represents how ________ forces can impact manufacturing.
A) economic
B) cultural
C) political
D) psychological
87) The local manufacturing organization is commonly a ________ version of that found in
the parent company.
A) scaled-down
B) fundamentally different
C) identical
D) scaled-up
88) Intermediate technology is
A) production methods between the capital- and labor-intensive processes.
B) synonymous with necessary technology.
C) older technology previously used by multinationals.
D) lean production.
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FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
89) Sometimes called additive manufacturing, ________ creates a product by methodically
adding material in a layer-by-layer manner.
90) 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 activities, is called ________.
91) The process of coordinating and integrating the flow of materials, information, finances,
and services within and among companies in the value chain is called ________.
92) The ________ of a company’s products and services has a fundamental relationship with
the types of inputs that the company will require, including labor, materials, information, and
financing.
93) ________ is the relocation of some or all of a business’s activities or processes to a
foreign location.
94) Outsourcing overseas is often called ________.
95) Any part of the ________ chain can be outsourced, including product design, raw
material or component supply, manufacturing or assembly, logistics, distribution, marketing,
sales, service, human resources, or other activities.
96) Outsourcing decisions, including the decision to use global sources of supply, are
extensions of the ________ decisions of earlier eras.
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97) In U.S. industry, the proportion of externally purchased materials in the overall cost of
goods sold has been ________ for several decades.
98) While direct production-oriented goods have been the focus of management attention for
many years, the purchasing of goods and services that are not part of finished goods, termed
________, is also critical.
99) For purchases of capital goods such as manufacturing equipment, many U.S. buying
organizations now use ________ costing to analyze purchasing decisions.
100) It is essential that global sourcing decisions be closely linked to the organization’s
________ and that explicit objectives for suppliers be defined and incorporated in contracts.
101) A balanced system in which there is little or no delay time and idle in-process and
finished inventory is called ________.
102) ________ JIT involves a narrow focus on managing goods inventories.
103) ________ manufacturing is an entire manufacturing process with unbalanced operations
that emphasizes total system performance.
104) Synchronous manufacturing is also called the theory of ________.
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105) Unlike JIT, in which the capacities of all operations are equal, synchronous
manufacturing aims to balance the product flow through the system, which leaves output levels
of the various operations ________.
106) A production increase at the bottleneck means an increase for the entire production
system; an increase in a non-bottleneck operation adds to only that machine’s ________ time.
107) The use of flexible, usually computer-aided manufacturing systems to produce and
deliver customized products and services for different customers worldwide is known as
________.
108) There are four basic approaches to mass customization: (1) collaborative; (2) ________;
(3) ________; and (4) transparent.
109) ________ is a business management process for reducing defects and eliminating
variation that combines rigorous analytical tools with a well-defined infrastructure and
leadership from the top in order to solve problems and optimize processes.
110) Manufacturing ________ is the division of production among a number of production
units.
111) ________ vertical integration establishes facilities to manufacture inputs used in the
production of a firm’s final product.
112) Production methods between capital- and labor-intensive methods are classified as
________.
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ESSAY. Write your answer in the space provided or on a separate sheet of paper.
113) What is supply chain management and why is it an important issue for a company’s
international competitiveness?
114) Why is the design of products and services important to global supply chain management
and what are the main design alternatives that are available?
115) What are the benefits of global sourcing?
116) Differentiate between the five sourcing arrangements that can provide a firm with foreign
products.
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Answer Key
Test name: Module C
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