SCM Chapter 11

Milan, Wall Street, and Detroit are examples of ____________.

Business clusters

According to the text, the development of cleaner, more fuel-efficient + affordable energy technologies will:

Decrease the costs in the supply chain

The first step in the weighted-factor rating technique is to:

Identify all factors important to the facility location

Manufacturing in China to sell to China customers would be which location decision type?

Proximity to markets

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n): a. Business cluster b. Regional business center c. Industrial point d. Metroplex

a. Business cluster

Which of the following is a critical issue in sustainable development? a. Climate change b. Countertrade c. Labor and legal problems d. Supply base optimization

a. Climate change

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Tariffs b. Innovation c. Relationship marketing d. Southeast Asian Nations

a. Tariffs

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products? a. Outpost factory b. Source factory c. Server factory d. Offshore factory

a. Outpost factory

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region? a. Server factory b. Offshore factory c. Outpost factory d. Source factory

a. Server factory

High tariffs encourage multinational corporations to set up factories to produce locally. a. True b. False

a. True

The European Union (EU) is considered a regional trade agreement. a. True b. False

a. True

A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. WEIGHTSITE ASITE BSITE CLabor Cost0.25 92 82 84Currency Stability0.35 75 85 88Proximity to Market0.30 80 50 60 Taxes0.10 69 88 91

b. Site A

Which of the following is NOT a reason for locating in a business cluster? a. Technology sharing b. Sophisticated retailers c. Supply chain improvements d. Competition

b. Sophisticated retailers

Facility location has ____________on the supply chain. a. A short-term impact b. Minimal impact c. A long-term impact d. No impact

c. A long-term impact

Milan, Wall Street, and Detroit are examples of ____________. a. Business conglomerates b. Regional trade agreements c. Business clusters

c. Business clusters

Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union shop laws b. Ethical union initiatives c. Right-to-work laws d. Union planning forums

c. Right-to-work laws

________________ is important because what we do today will affect future generations. a. Progressive design b. An offshore factory c. Sustainable development d. Customer churn

c. Sustainable development

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility.LOCATIONANNUAL FIXED COSTSUNIT VARIABLE COSTSSite A$25,000$11Site B$20,000$19 a. The breakeven point for these two locations is 600 units per year b. Site B is the desired location if the production rate is 800 units per year c. The breakeven point for these two locations is 625 units per year d. Site A is the desired location if the production rate is 500 units per year

c. The breakeven point for these two locations is 625 units per year

Once a decision on locating a facility is made, it is ________ to move or shut down that facility.

costly

Regional trade agreements assist with which of the following? a. Handle trade disputes b. Provide technical assistance for developing countries c. Monitor national trade policies d. All of these choices are correct.

d. All of these choices are correct.

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these choices are correct.

d. All of these choices are correct.

Examples of regional trade agreements include all of the following EXCEPT: a. Southern Common Market (MERCOSUR) b. Association of Southeast Asian Nations (ASEAN) c. European Union (EU) d. Association of Indian Markets (AIM)

d. Association of Indian Markets (AIM)

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Increase the cost of production and distribution b. Cause companies to shut down c. Not have an impact on the supply chain d. Decrease the costs in the supply chain

d. Decrease the costs in the supply chain

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n): a. International Cross Docking Zone b. Duty-free Territory c. International Processing Center d. Foreign Trade Zone

d. Foreign Trade Zone

The first step in the weighted-factor rating technique is to: a. Assign a performance score to each factor for each location b. Multiply each factor score by its weight and sum the weighted scores for each location c. Assign a weight to each factor d. Identify all factors considered important to the facility location decision

d. Identify all factors considered important to the facility location decision

T/F: Global location should optimize SCM performance and be consistent with the firm's strategy

true