MGT 472 Chapter 15, multiple choice

52. (p. 247) Relocating some or all of a business' activities or processes to a foreign location is: A. offshoring. B. outsourcing. C. supply chain management. D. subcontracting. E. joint-venture.

A.

57. (p. 248) Investigation of export and import data shows: A. there is a strong relationship between global sourcing and ownership of the foreign sources. B. there is no relationship between global sourcing and ownership of the foreign sources. C. that American firms, but not Japanese firms, buy from their U.S. subsidiaries. D. American firms import twice as much from their overseas subsidiaries than foreign firms import from their U.S. affiliates. E. American firms import thrice as much from their overseas subsidiaries than foreign firms import from their U.S. affiliates.

A.

67. (p. 252) Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service are referred to as: A. standards. B. processes. C. logistics. D. value chains. E. marketing standards.

A.

75. (p. 255) The level of technology chosen may be: A. intermediate technology, capital-intensive, or labor-intensive. B. intermediate technology. B. capital-intensive. C. labor-intensive. D. speed-intensive.

A.

77. (p. 257) Intermediate technology is: A. technology between the capital- and labor-intensive processes. B. synonymous with necessary technology. C. older technology previously used by multinationals. D. synonymous with cutting edge technology.

A.

43. 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: A. offshoring. B. outsourcing. C. supply chain management. D. subcontracting. E. joint-venture.

B.

45. Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as: A. value chains. B. supply chains. C. organization design. D. operations management. E. subcontracting.

B.

55. (p. 248) The following arrangement can provide a firm with foreign products: A. domestic subsidiary. B. wholly owned subsidiary. C. foreign sales office. D. joint-venture. E. strategic alliance..

B.

69. (p. 253) ISO 9000: A. Is the most-used standard for quality in the United States. B. Is a set of five universal standards for a quality assurance system agreed to by the ISO. C. Ensures product quality. D. Ensures timely delivery. E. Is the most-used standard for quality in the China.

B.

70. (p. 254) Manufacturing rationalization is: A. the allocation of scarce resources. B. the division of production among several subsidiaries so that each produces only a limited number of components for all subsidiaries. C. the concentration of production at one site to get economies of scale. D. the production by a subsidiary for its own national market.

B.

72. (p. 254) Global standardization of operations: A. eliminates the task of maintenance and production control. B. allows home office personnel to quickly spot deviations from the norm. C. enables reasonably accurate forecasts of time required to obtain permits and erect plants. D. promotes the task of maintenance and production control. E. enables inaccurate forecasts of time required to obtain permits and erect plants.

B.

76. (p. 255) Backward vertical integration refers to: A. the purchase of competitive firms. B. the installation of production facilities to produce inputs for the production of final products. C. the placing of minorities in charge of production processes. D. the installation of production facilities to consume the outputs of the production system.

B.

44. Efforts to improve the efficiency and effectiveness of a firm's international operations are often referred to as: A. offshoring. B. outsourcing. C. supply chain management. D. subcontracting. E. joint-venture.

C.

46. A typical company's supply chain costs can represent more than ____ percent of assets. A. 20 B. 35 C. 50 D. 60 E. 80

C.

47. According to the text, it has been argued that the ultimate goal of effective supply chain management systems is to: A. reduce costs. B. improve quality. C. reduce inventory. D. increase sales. E. increase standardization.

C.

49. (p. 247) A traditional approach to product design, which involves a sequential approach to design, has been termed: A. product-based design. B. concurrent engineering. C. over-the-wall. D. sequenced design. E. participative design.

C.

58. (p. 248) In U.S. industry, the proportion of purchased materials in the overall cost of goods sold has been rising for several decades, to a level of ________ percent today. A. 40 B. 45 to 60 C. 55 to 79 D. 65 to 74 E. over 80

C.

59. (p. 248) It has been estimated that at least ____ percent of products currently on the market were not available 5 years ago, creating additional pressure to locate suppliers worldwide that can provide inputs at competitive prices and quality and with quick responsiveness to market changes. A. 30 B. 45 C. 50 D. 55 E. 60

C.

64. (p. 250) According to the text, the cost of importing a foreign sourced product: A. is insignificant. B. may range from 26% to 110% of the cost of the product. C. may range from 10% to 12% of the cost of the product. D. may not be charged if the terms of sale are CIF, port of entry. E. may range from 43% to 143% of the cost of the product.

C.

66. (p. 251) Managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods are referred to as: A. standards. B. processes. C. logistics. D. value chains. E. marketing mix.

C.

71. (p. 254) Quality control in foreign affiliates from the home office is less difficult when: A. the quality inspectors are trained in the home office. B. separate standards are used in each plant. C. production equipment is similar. D. the quality reports are sent to the home office at the same time. E. homogenous standards are used in each plant.

C.

50. (p. 247) The approach to design, which promotes cross-functional participation in the design stage: A. helps to identify many of the potential sourcing, manufacturing and other difficulties associated with a particular design. B. may involve customers in the design process. C. has been called "concurrent engineering". D. helps to identify many of the potential sourcing, manufacturing difficulties associated with a particular design, and may involve customers in the process, and is also called "concurrent engineering". E. may not involve potential customers in early design process.

D.

51. (p. 247) Reasons for sourcing globally include: A. a lower price. B. products not available locally. C. a firm's worldwide operation and quality. D. a lower price, products not available locally, and a firm's worldwide operation and quality.

D.

53. (p. 247) A reason that outsourcing has become an increasingly common option for companies is: A. it helps companies to focus scarce resources on their core competencies. B. it avoids problems of different languages or cultures. C. it enhances flexibility. D. it helps companies to focus scarce resources on their core competencies and it enhances flexibility. E. it enhances customer interaction.

D.

56. (p. 248) The following arrangement can provide a firm with foreign products: A. overseas joint venture. B. overseas independent contractor. C. foreign sales office. D. Overseas joint venture and an overseas independent contract. E. joint-venture.

D.

60. (p. 249) According to the text, including such items as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for as much as what percent of the total purchasing expenditures in companies? A. 15 percent B. 30 percent C. 50 percent D. 70 percent E. 80 percent

D.

61. (p. 249) Electronic procurement exchanges: A. can facilitate efforts to obtain letters of credit. B. can permit bid/quote systems for buyers and suppliers. C. protect companies from potential loss of proprietary data. D. can facilitate efforts to obtain letters of credit, and permit bid/quote systems for buyers and suppliers. E. can facilitate efforts to obtain letters of debit.

D.

63. (p. 250) For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use _____ to analyze purchasing decisions, including trade-in or future estimated salvage value. A. e-procurement. B. activity-based costing. C. total costing. D. life-cycle costing. E. e-logistics.

D.

68. (p. 253) Reasons for global standardization of manufacturing systems include: A. simpler organization at headquarters. B. less design time required for a new plant. C. easier and more cost-effective purchasing. D. include simpler organization at headquarters, less design time required for a new plant, and easier and more cost-effective purchasing. E. less time required in travelling.

D.

74. (p. 255) Mass customization: A. is enhanced by a company's use of computer-aided manufacturing systems to produce and deliver products and services in a batch size of one. B. is usually appropriate in situations where there is the potential for differentiating a product for a particular customer. C. typically requires the company to reconceptualize the design of its products as well as the design and integration of the processes used for producing and delivering the product to customers. D. is enhanced by use of computer-aided systems to produce and deliver products and services in batch of one, it is also appropriate when there is potential for differentiating a product for a customer, and requires reconceptualizing the design of products, the design and integration of the processes used. E. is usually not appropriate in situations where there is the potential for differentiating a product for a particular customer.

D.

48. According to the text, increased emphasis on the achievement of effective supply chain performance has resulted from: A. shorter, more predictable product life cycles. B. the impact of unplanned political and social events. C. Web-enabled tools for planning, executing and optimizing supply chains. D. longer, more unpredictable product life cycles. E. the impact of unplanned political and social events and Web-enabled tools for planning, executing and optimizing supply chains.

E.

54. (p. 248) A reason that outsourcing has become an increasingly common option for companies is: A. the cost of communications is plummeting. B. more automation of a company's operational activities. C. more companies are competing for outsourcing business. D. very few companies are competing for outsourcing business. E. the cost of communications is plummeting, more automation of a company's operational activities, and more companies are competing for outsourcing business.

E.

62. (p. 250) Research found that suppliers cut invoice and ordering errors by an average of ___ percent when using an e-marketplace. A. 10 B. 24 C. 37 D. 56 E. 69

E.

65. (p. 250) Problems associated with e-procurement include: A. it cannot be isolated from the company's overall business system. B. it must be completed before the firm can engage in other purchasing functions, such as supplier determination and analysis. C. It can expose the company to a wide range of potential security issues. D. It can expose the company to a wide range of potential environmental hazards. E. that it cannot be isolated from the company's overall business system, and it can expose the company to a wide range of potential security issues.

E.

73. (p. 255) When designing production facilities, designers generally find that: A. automated machinery is severely limited in flexibility regarding product variety and sizes. B. general-purpose machines require skills that are built into a special-purpose machine. C. they have to choose between low-output specialized machinery and higher-output, general-purpose machines. D. general-purpose machines do not require skills that are built into a special-purpose machine. E. that automated machinery is severely limited in flexibility regarding product variety and sizes, and general-purpose machines require skills that are built into a special-purpose machine.

E.