Deck 13: Global Operations and Supply-Chain Management

Question 1

The property of ERP systems to handle the accounting standards of multiple countries is called the multi- currency property.

Answer 1

False

Question 2

In the production system model, _____ represent the desired goods and services.

A) inputs
B) outputs
C) raw materials
D) components
E) factors of production

Answer 2

B

Question 3

All activities performed typically by business organizations such as suppliers, manufacturers, distributors, and retailer that involve the flow and transformation of goods and services is referred to as a supply chain.

Answer 3

True

Question 4

Inputs such as aluminum, titanium, glass, engines, machines, engineers, and workers are all examples of raw materials.

Question 5

The activities in operations management can be grouped into four business functions: procurement, production, logistics, and research and development.

Question 6

In operations management, the acquisition of goods and services is referred to as logistics.

Question 7

Software packages designed to integrate the majority of a firm's business processes, execute all transactions related to the firm's business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment, traditional or web-based are called enterprise resource planning systems.

Question 8

Goods and services that integrate a product are called _____.

A) production process
B) production facilities
C) raw materials
D) components
E) factors of production

Question 9

Boeing buying from thousands of suppliers in more than 100 countries, but only having production facilities in the U.S. is an example of global procurement and domestic production.

Question 10

The practice of producing the components and raw materials in-house and from suppliers is referred to as supply-chain malfunction.

Question 11

When the goods dominate the value of a product, it is typically called a manufacturing system.

Question 12

The production systems of Honda Motor Company, the Boeing Company, and Toshiba Corporation, would be called _____ systems.

A) production
B) manufacturing
C) service
D) component
E) raw

Question 13

The three major considerations for deciding the location of production facilities for products are: does the product serve the needs of all customers around the world, proximity to market and proximity to suppliers, and the effect on product's image being produced in that location.

Question 14

The production systems of the Fred Hutchinson Cancer Research Center, the Walt Disney Company, and the consulting firm Accenture, would be called _____ systems.

A) production
B) manufacturing
C) service
D) component
E) raw

Question 15

Some advantages of making components and raw materials in-house are: cost, control over quality, more control over deliveries, secure the supply source, and is not required to honor protections of intellectual property.

Question 16

When considering the one-versus-many location for production facilities for components and raw materials some of the most important considerations are: fixed costs, minimum efficient scale and its comparison to demand, and the value-to-weight ratio.

Question 17

When the demand is equal or lower than the minimum efficient scale, multiple production facility locations are preferred.

Question 18

A production system in which services dominate the value of the product is known as a(n)_____ system.

A) production
B) manufacturing
C) service
D) component
E) raw

Question 19

When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers is referred to as insourcing.

Question 20

One advantage of global procurement is that the firm can maximize its flexibility by allocating its orders among suppliers in a dynamic way and the firm has access to more suppliers that can generally provide lower costs than domestic suppliers.

Question 21

Determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers is known as the _____ decision.

A) sale-or-keep
B) manufacture-or-sale
C) sink-or-swim
D) make-or-buy
E) build-or-break

Question 22

The supply chains of global businesses such as Boeing, Ford, United Airlines, and the pharmaceutical companies Merck and Pfizer are known as _____ supply chains.

A) environmental
B) global
C) enterprise
D) telecommunication
E) multi-national

Question 23

Most of the activities in operations management can be grouped into the following business functions EXCEPT:

A) procurement
B) logistics
C) production
D) research and development
E) selling

Question 24

Of the following, which is NOT a disadvantage of making?

A) The firm has less control over quality.
B) It requires the company to have expertise in the production of the component or raw materials what will be made.
C) The people producing the component or raw material do not have the incentive to improve their product.
D) The firm may not be able to gain the economies of scale that can be gained by a supplier that is able to pool the activity of a large number of firms.
E) The firm would incur both fixed and variable costs.

Question 25

The production process may consist of one or more transformations which could be all of the following EXCEPT:

A) physical
B) locational
C) psychological
D) esteem
E) physiological

Question 26

When a firm outsources to a supplier located in a different country, it is called _____.

A) dual sourcing
B) domestic outsourcing
C) border outsourcing
D) offshoring
E) insourcing

Question 27

When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers, it is called _____.

A) outsourcing
B) domestic manufacturing
C) global farming
D) offshoring
E) insourcing

Question 28

Ford's ERP system follows the American accounting standards in its U.S. subsidiaries, and follows the Mexican accounting standards in its Mexico subsidiaries. This ERP system is _____.

A) multi-language
B) multi-national
C) multi-currency
D) multi-enterprise
E) multi-culture

Question 29

Of the following, which is NOT a consideration for the one-versus-many production facilities decision?

A) Fixed costs
B) The notion of the minimum efficient scale and its comparison to demand
C) The local culture
D) The value-to-weight ratio
E) The infrastructure that the company offers

Question 30

Most of the activities in operations management can be grouped into ____ business functions.

A) two
B) three
C) four
D) five
E) six

Question 31

Collections of computer hardware and software arranged to transmit information from one place to another are known as _____.

A) telecommunication networks
B) global networks
C) enterprise networks
D) internetworking networks
E) multi-national networks

Question 32

When the firm has been buying goods and services from suppliers, and then decides to make these goods and services in-house, it is called _____.

A) dual outsourcing
B) domestic outsourcing
C) global outsourcing
D) offshoring
E) insourcing

Question 33

_____ refers to the property of ERP systems to simultaneously operate in multiple languages.

A) Multi-language
B) Multi-national
C) Multi-currency
D) Multi-enterprise
E) Multi-culture

Question 34

Of the following, which is NOT a disadvantage of global procurement?

A) The firm has to invest the money that is associated with making products.
B) The firm may need to compete for the attention of suppliers.
C) The profits that the company could earn by producing the goods and services in-house now go to the suppliers.
D) Buying from suppliers could unintentionally lead suppliers becoming competitors.
E) The firm relies upon suppliers on important dimensions such as quality, delivery, and cost.

Question 35

Steps in the production process are called _____.

A) production stages
B) production facilities
C) raw materials
D) components
E) factors of production

Question 36

Of the following, which is NOT an advantage of global procurement?

A) The firm does not need to invest the money that is associated with making.
B) The firm can focus upon the production stages and components with the most value added.
C) The firm can maximize its flexibility by allocating its orders among the suppliers in a dynamic way.
D) If global suppliers are selling to many companies in the same industry but in different countries, these suppliers can achieve economies of scale and lower costs.
E) The firm does not rely upon suppliers on important dimensions such as quality, delivery, and cost.

Question 37

World Talk is a company that sells an ERP system which can simultaneously operate in more than 18 languages. When the user launches the ERP system, he or she has the option of selecting the language in which he or she will interact with the system. This ERP system is _____.

A) multi-language
B) multi-national
C) multi-currency
D) multi-enterprise
E) multi-culture

Question 38

The management of all activities in the supply chain, in order to minimize the total cost of the supply chain, and to maximize the value of the product to the end user is known as _____.

A) a telecommunication network
B) internetworking
C) enterprise resource planning
D) supply chain
E) supply-chain management

Question 39

Of the following, which is NOT an advantage of making?

A) Knowledge of the product may provide efficiency advantages over potential suppliers.
B) The firm has more control over quality.
C) People producing the component or raw material have the incentive to improve their product.
D) The firm has more control over deliveries.
E) It secures the supply source.

Question 40

Software packages designed to integrate the majority of a firm's business processes, execute all transactions related to the firm's business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment are called_____.

A) telecommunication networks
B) global networks
C) enterprise resource planning systems
D) internetworking networks
E) multi-national networks

Question 41

__________ occurs when a firm buys components and raw materials globally.

Question 42

Microchips and jewelry are examples of goods with

A) low fixed costs.
B) no minimum efficient scale.
C) low value-to-weight ratio.
D) highly wasted fixed costs in location decision.
E) high value-to-weight ratio.

Question 43

______ is responsible for the design of new products in the production process.

A) Procurement
B) Logistics
C) Production
D) Research and development
E) Selling

Question 44

__________ occurs when a firm has production facilities in more than one country.

Question 45

______ refers to the management of the direct resources that are involved in the production system of a business organization.

A) Procurement management
B) Operations management
C) Logistics management
D) Research and development
E) Marketing management

Question 46

The sites where production takes place are called __________.

Question 47

__________ occurs when the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country.

Question 48

Products can be conceptualized as being integrated by several goods and services called __________.

Question 49

__________ occurs when a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers.

Question 50

When the services dominate the value of the product, the production system is commonly called a __________.

Question 51

______ is responsible for the acquisition of goods and services in the production process.

A) Procurement
B) Logistics
C) Production
D) Research and development
E) Selling

Question 52

__________ refers to the management of the direct resources that are involved in the production system of a business organization.

Question 53

Which of these is responsible for the movement of materials in the production process?

A) Procurement
B) Logistics
C) Production
D) Research and development
E) Selling

Question 54

Determining in the production system which components and raw materials should be produced in-house, and which components and raw materials should be acquired from suppliers; also called the sourcing decision is referred to as __________.

Question 55

Steps in the production process are called __________.

Question 56

Materials used to produce components are called __________.

Question 57

When the goods dominate the value of the product, the production system is typically called a ________.

Question 58

Toddler Toys operates a massive research and development facility in Missouri, USA. The company designs its toys in the United States but outsources all other production process functions. Toddler Toys can be described as a

A) dual outsourcing company.
B) hollow corporation.
C) global manufacturer.
D) offshored powerhouse.
E) None of these.

Question 59

Which of these is responsible for the transformations required by the production process?

A) Procurement
B) Logistics
C) Production
D) Research and development
E) Selling

Question 60

A ______ is a system that businesses use to create the goods and services, or to produce the products.

Question 61

Determining if products made in-house will be produced in one or more facilities, and if these facilities should be located in one or more countries is called __________.

Question 62

A company that only completes product design and outsources all other production process functions is called a __________.

Question 63

Identify the advantages and disadvantages of making components and raw materials in-house.

Question 64

__________ refers to all activities associated with the flow and transformation of goods and services from the raw material stage to the end user, together with the corresponding flows of monetary funds and information.

Question 65

__________ refers to the linking of separate networks into an interconnected network, where each network retains its own identity.

Question 66

"Fortunately, ERP does not affect global supply chain management." Do you agree with this statement. Defend your position.

Question 67

__________ occurs when components and raw materials are produced in-house and purchased from suppliers.

Question 68

Differentiate between outsourcing and insourcing using a company example.

Question 69

__________ occurs when a firm is outsourcing to a supplier located in a different country.

Question 70

__________ occurs when the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in different countries; also called offshoring.

Question 71

__________ occurs when the firm has been buying goods and services from suppliers, and then decides to make these goods and services in-house.

Question 72

__________ refers to a property of ERP systems to handle multiple currencies.

Question 73

Discuss the considerations for the location of production facilities for making components and raw materials.

Question 74

Describe the advantages and disadvantages of global procurement.

Question 75

__________ refers to software packages designed to integrate the majority of a firm's business processes, execute all transactions related to the firm's business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment, traditional or web-based.

Question 76

__________ refers to a property of ERP systems to simultaneously operate in multiple languages.

Question 77

__________ refers to a property of ERP systems to handle the accounting standards of multiple countries.

Question 78

__________ refers to collections of computer hardware and software arranged to transmit information from one place to another.

Question 79

__________ refers to the management of all activities in the supply chain, in order to minimize the total cost of the supply chain, and to maximize the value of the product to the end user.

Question 80

Differentiate between manufacturing and service system. Describe a typical production system using a company.