IB chapter 18
12) When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ________. A) nearshoring B) cost-benefit analysis C) offshoring D) coordination
A
13) ________ manufacturing is any manufacturing that takes place in a country different from the home country. A) Offshore B) Multidomestic C) Cost-minimization D) Outsourcing
A
30) ________ is the process of a firm having inputs supplied to it for the production process. A) Sourcing B) Subcontracting C) External production D) Offshoring
A
33) ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers. ACE is most likely engaging in ________. A) industrial clustering B) horizontal sourcing C) zero sourcing D) offshoring
A
37) In deciding whether to make or buy, MNEs should focus on those parts that are ________ to the product and that they are ________ at making. A) critical; distinctively good B) incremental; distinctively good C) critical; marginally good D) incremental; marginally good
A
4) Which of the following BEST describes a major difference between supply chain management and logistics? A) Supply chain management involves handling suppliers and customers. B) Logistics involves longer distances and international distribution networks. C) Supply chain management focuses on transportation and the storage of goods. D) Logistics only encompasses the outbound flow of products and materials.
A
41) Which of the following is one of the four phases of purchasing globalization? A) foreign buying as a part of procurement strategy B) complete rejection of domestic purchasing C) foreign buying based on want D) global purchasing only
A
59) Which of the following is most likely a true statement about using the Internet in supply chain management? A) The Internet is universally accessible. B) The Internet slows internal processes in a company. C) The Internet minimizes efficiency gains to a company's suppliers. D) The Internet prevents a deeper level of collaboration and communication
A
66) Quality is defined as ________. A) meeting or exceeding the expectations of the customer B) meeting the everyday low price expected by the customer C) meeting international quality standards, such as ISO 9000 D) meeting internal quality standards
A
69) An element of total quality management (TQM) that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ________. A) kaizen B) Six Sigma C) kanban D) acceptable quality level (AQL)
A
71) What are the three levels of quality standards? A) general, industry-specific, and company B) general, international, and domestic C) employee, company, and customer D) company, international, and industry-specific
A
73) At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories. Which of the following does Fidelity most likely use? A) just-in-time (JIT) B) total quality management (TQM) C) six Sigma D) acceptable quality level (AQL)
A
8) In the context of manufacturing strategy, the degree of consistency between the foreign investment decision and the company's competitive strategy is known as ________. A) compatibility B) coordination C) control D) configuration
A
10) The ability of the production process to make different kinds of products and to adjust the volume of output is known as ________. A) quality control B) flexibility C) dependability D) innovation
B
17) Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe. Roland is most likely using a ________ manufacturing strategy. A) centralized B) regional C) global D) country-specific
B
21) ________ is the linking or integrating of activities into a unified system. A) Control B) Coordination C) Configuration D) Compatibility
B
3) Logistics is also known as ________. A) internal logistics B) materials management C) the internal supply chain D) value-added management
B
36) Japanese ________ are groups of independent companies that work together to manage the flow of goods and services along an entire value chain. A) chaebol B) keiretsus C) sigmas D) kaizen
B
38) Which of the following is one of the biggest barriers to expanding the use of outsourcing? A) long-term independence from an external organization B) loss of operational control C) cultural opportunities in the organization D) language barriers
B
39) Which of the following should an MNE most likely consider in a make-or-buy decision? A) organizational hierarchy B) supplier capabilities C) employee morale D) niche markets
B
56) MedCo uses an IT system that labels a product with an electronic tag to provide real-time information. Which of the following does MedCo most likely use? A) EDI (electronic data interchange) B) RFID (radio frequency ID) C) PTX (private technology exchange) D) ERP (enterprise resource planning)
B
57) Amazon relies on the Internet to join together suppliers with companies and companies with customers. Amazon is most likely using ________. A) value-added networks B) e-commerce C) electronic data interchange D) private technology exchange
B
67) Before the strong emphasis on zero defects, U.S. companies operated under the premise of ________, which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects. A) Six Sigma B) acceptable quality level C) just-in-time inventory management (JIT) D) ISO 9000
B
74) Gibson Enterprises is an MNE that relies on just-in-time inventory management and lean manufacturing systems to optimize quality and efficiency. For the last few years, Gibson has used the same foreign sources for its raw materials. What is the most likely risk faced by Gibson because of foreign sourcing? A) quality of incoming inventory B) uncertainty of arriving parts C) few available suppliers D) high inventory costs
B
11) The need for greater efficiency, which is closely linked to ________, forces MNEs to align their overall strategy with operations. A) higher costs B) quality control C) cost reduction D) flexibility
C
15) When a company has improved its operations efficiency so much that it decide to move back to its home country, this is called ________. A) nearshoring B) offshoring C) onshoring D) outsourcing
C
18) A multidomestic configuration is most important when ________. A) demand in individual countries decreases significantly B) exporting is the company's main strategy C) demand in individual countries becomes significant D) low-priced, standardized products are available
C
19) Deciding whether to establish production facilities in many different countries or in one centralized location is part of the ________. A) cultural matrix B) Six Sigma process C) manufacturing configuration D) innovation matrix
C
2) Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods. Jordan is most likely a manager involved with ________. A) quality control B) offshoring C) logistics D) inventory management
C
22) ________ is the measuring of performance so that companies can respond appropriately to changing conditions. A) Coordination B) Configuration C) Control D) Compatibility
C
31) Alta Designs is considering the idea of global sourcing. What would be the most likely result for Alta Designs? A) gain access to more domestic markets B) gain access to more domestic products C) lower costs and improve quality D) shorten lengthy supply lines
C
35) Rapid Technologies owns its entire supplier network, which means that the firm most likely uses ________. A) industrial clustering B) competitive sharing C) vertical integration D) global outsourcing
C
40) A current sourcing dilemma that some companies face is whether or not they should ________. A) use outsourcing as a reward to underperforming employees B) make critical components for which they have competencies C) outsource innovative processes D) measure supplier performance
C
55) Giga-Mart has an IT system that links the firm's suppliers, manufacturers, customers, and intermediaries. Giga-Mart most likely has a(n) ________, A) TQM (total quality management) B) JIT (just-in-time) C) EDI (electronic data interchange) D) ERP (enterprise resource planning)
C
58) ________ is an online collaboration model that brings manufacturers, distributors, valueadded retailers, and customers together to execute trading transactions. A) Electronic data interchange (EDI) B) ERP (enterprise resource planning) C) Private technology exchange (PTX) D) E-commerce
C
68) The Japanese approach to quality is total quality management (TQM), which stresses which of the following principles? A) employee involvement, commitment to international standards, and customer satisfaction B) customer satisfaction, continuous improvements, and warranties C) customer satisfaction, employee involvement, and continuous improvements D) employee involvement, continuous improvements, and commitment to international quality standards
C
76) ________ is an idea perfected by Japanese manufacturers to ensure quality in products. A) Lean manufacturing B) Total quality management C) Zero defects D) Kaizen
C
1) Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer? A) logistics strategy information system B) materials management device C) customer service D) supply chain
D
14) Bocce Shoes, an Italian firm, set up a production facility in Vietnam to manufacture the firm's line of athletic shoes. Bocce is most likely using a(n) ________ strategy. A) dependability B) flexibility C) innovation D) efficiency/cost
D
16) Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy? A) regional manufacturing B) centralized manufacturing C) multidomestic manufacturing D) multicultural manufacturing
D
20) Once a firm has determined what its manufacturing configuration will be, and has coordinated its supply chain, it must create a(n) ________ system to ensure that the firm's strategies are carried out. A) multidomestic B) centralized C) offshore D) control
D
32) All of the following tend to be more expensive when sourcing abroad, EXCEPT ________. A) transportation costs B) inventory holding costs C) brokers and agents fees D) labor rates
D
34) Which of the following would most likely be reduced by vertical integration? A) export tariffs B) component prices C) product returns D) transaction costs
D
42) Which of the following is a sourcing strategy in the global context? A) use only local purchasing agents B) establish local purchasing offices C) purchase only from global suppliers D) assign domestic buyers for international purchasing
D
60) What is the main information-related challenge in global supply chain management? A) The Internet is growing too quickly in emerging markets. B) Few countries are technologically advanced. C) The industrial equipment and food/agriculture industries use e-commerce more than industries such as defense and motor vehicles. D) Many emerging market networks cannot be managed through the Internet because of the lack of technology.
D
65) Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries? A) language barriers B) overabundance of skilled and educated workers C) lack of inventory D) long distances
D
70) Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system. Fortis most likely uses ________. A) total quality management B) acceptable quality levels C) just-in-time processes D) Six Sigma processes
D
72) Which of the following is a set of universal standards for a globally accepted quality assurance system? A) just-in-time (JIT) inventory management B) Six Sigma C) total quality management (TQM) D) ISO 9000
D
75) A kanban system is best described as a system that ________. A) uses special locations for storing imported inventory to avoid paying duties B) seeks to improve quality by setting a rigorous goal of zero defects C) electronically links together suppliers, customers, and intermediaries D) facilitates JIT by using cards to control the flow of production through a factory
D
9) Gates Manufacturing is striving to improve its performance reliability, speed of delivery, and product reliability. Gates is most likely focusing on a(n) ________ strategy. A) flexibility B) innovation C) dependability D) quality
D
