Deck 10: Global and Multi-Market Supply Chain Management

Question 1

Global sourcing among regions works best when transportation and tariff costs are minimal, and where components and materials are customized

Answer 1

False

Question 2

Regional sourcing strategies are often used among countries with regional trading agreements, common technical standards and similar demand patterns

Answer 2

True

Question 3

National (in-market) supply chains are often used when quality levels cannot be sustained in foreign plants, when labor is a significant proportion of total costs, and where service maintenance is a key competitive advantage

Answer 3

False

Question 4

Global supply chain cost advantages include access to better suppliers, consolidating of manufacturing and distribution facilities and purchasing scales economies

Question 5

National (in-market) supply chains work when 'made in' advantages accrue to home markets, and where 'super contractors' make domestic costs competitive

Question 6

Suppliers are fully integrated into global sourcing systems when worldwide purchasing is coordinated across divisions, represented at the highest organizational levels, and suppliers contribute to manufacturers' competitive advantages

Question 7

Global supply chain differentiation advantages include access to better suppliers, consolidating of manufacturing and distribution facilities and purchasing scales economies

Question 8

Global supply chain differentiation advantages include superior service levels and contributions to new product development

Question 9

Environmental catalysts to global supply chains include the free trade movement, the homogenization of global demand and increased international competition

Question 10

When market needs are simple (standardized materials and components) longer supply chains become viable

Question 11

Corporate catalysts to global supply chains include contributions to corporate cost and differentiation competitive advantages

Question 12

Suppliers are fully integrated into global sourcing systems when customers, manufacturers, distributors and suppliers are linked through common information systems

Question 13

When market needs are complex, (many products, segments, short delivery times) short supply chains for materials and components are preferred

Question 14

Supplier-customer (manufacturer) relations evolve into relationships as trust is built between them

Question 15

Global supply chains are the means that international firms use to procure supplies for use in their manufacturing facilities

Question 16

When market needs are complex (many products, segments, short delivery times) long supply chains for materials work well

Question 17

Corporate catalysts to global supply chains include the free trade movement, the homogenization of global demand and increased pressures for global competition

Question 18

Trends affecting supplier-manufacturer relationships include those towards short production runs, reductions in processing times, and the outsourcing of selected supply chain functions

Question 19

Environmental catalysts to global supply chains include contributions to corporate cost and differentiation competitive advantages

Question 20

Global supply chains take advantage of low factor costs, national expertise and component production and resource availability differences among nations

Question 21

Globally integrated production networks take advantage of national and regional differences in production costs to manufacture components at their most cost effective locations

Question 22

Reengineering corporate structures and processes poses significant challenges in countries with ethnic fragmentation, traditional authority structures and educational system disparities

Question 23

US retailers were early pioneers in the field and continue to dominate retailing environments around the world

Question 24

The globalization of retailing started in the 1980s

Question 25

Concentrations in retail ownership in many world markets has made global store chains more amenable to the needs of international manufacturers

Question 26

In manufacturer-distributor organizational options, the classical system entails bulk shipments going directly into subsidiary warehouses where they are stored until sold

Question 27

Employee training, empowerment and teamwork are essential inputs if total quality managements methods are to work

Question 28

Global trade liberalization has encouraged firms to build country-based manufacturing systems

Question 29

Global trade liberalization has encouraged companies to integrate their manufacturing systems across markets

Question 30

Globally integrated production networks use the same small scale manufacturing methods in all markets

Question 31

Empowering employees to work total quality management practices is easiest in countries with histories of social class distinctions

Question 32

The effective implementation of just-in-time manufacturing methods is rarely or never problematic in developed nations

Question 33

Regional specialization of manufacturing facilities produce specific components or materials that are then shipped to central processing facilities for assembly

Question 34

The implementation of just-in-time and total quality management practices worldwide, the key is to involve employees in the customer satisfaction process

Question 35

The Toyota Production System places great emphasis on recruitment and training to maintain its reputation for manufacturing excellence worldwide

Question 36

Advances in information technologies have caused middlemen to disappear and made retailers and manufacturers more sensitive to sales trends

Question 37

Multi-country warehouse systems are used to consolidate product and component shipments before transporting them to nearby national markets

Question 38

Regionally-integrated production facilities allow individual factories to produce single product lines for entire regions

Question 39

Privatization and deregulation in national transportation industries has resulted in the emergence of global and pan-regional carriers

Question 40

In manufacturer-distributor organizational options, the direct system is used for small high value shipments between manufacturing locations and warehouses

Question 41

Maintaining the same product design team as products move from market to market has become increasingly unnecessary

Question 42

Desirable qualities of expatriate managers include cultural empathy and sensitivities to global events

Question 43

Expatriate assignment failures are much higher for US firms than for European or Japanese companies

Question 44

Human resource managers can be globalized by placing them in global management teams or putting them in regional or country operating divisions

Question 45

The payoffs from supply chain inputs into the new product development process come not only from additional ideas generated but also from speedy implementation of new product programs

Question 46

Harmonizing labor-management relation policies across countries or regions is almost impossible

Question 47

Encouraging and helping spouses find work overseas increases the likelihood of a successful expatriate assignment

Question 48

Outsourcing supply chain activities frees up resources and enable firms to access the superior capabilities of outside companies

Question 49

The 'hollowing out' of corporations refers to the transfer of expertise from the home market to a company's foreign subsidiaries

Question 50

Regulatory obstacles such as advertising restrictions, privacy issues, taxation problems and currency convertibility are consumer-based obstacles to internet and supply chain extensions into worldwide markets

Question 51

The expatriate repatriation process is often viewed as a strong link in US companies

Question 52

Common product components and platforms is a significant aid to product development in global markets

Question 53

Low ownership levels of personal computers and credit cards are not obstacles to internet purchasing in developing markets

Question 54

Building recyclable components into new products has become increasingly important particularly in Western Europe

Question 55

Family problems are not usually a problem in expatriate assignments

Question 56

Speedy, customized output and well-orchestrated supply chains are impacting increasing numbers of industries including autos, jeans and bicycles

Question 57

Company focuses on core competencies has resulted in performing as many supply chain activities as possible in-house

Question 58

Foreign assignments are viewed increasingly as essential preparation for corporate leadership positions

Question 59

The only cost of a failed expatriate assignment is the cost of maintaining them abroad

Question 60

Geographically-based organizational structures are more efficient than product structures in rolling out new products

Question 61

Outsourcing of raw material purchases makes sense when materials are high percentages of product cost structures or are key ingredients affecting product quality

Question 62

Outsourcing of new product development activities ensures that company specifications are followed and confidentiality is not compromised

Question 63

Overseas vendors need thorough vetting along with the their market environments

Question 64

Outsourcing to foreign producers allows overseas manufacturers to build up production expertise and gain insights into customer needs

Question 65

Many companies maintain their own distribution and warehousing facilities to ensure regular feedback about marketplace and sales trends

Question 66

The outsourcing of logistics and transportation has never been a popular option

Question 67

Ownership of raw material sources makes sense when materials are high percentages of product cost structures or are key ingredients affecting product quality

Question 68

Foreign outsourcing of supply chain activities, especially manufacturing, has few repercussions in the home market

Question 69

Manufacturing outsourcing gives firms flexibility in responding to rapidly changing marketplace conditions

Question 70

The more important components are to a producer's manufacturing process, the more likely firms are to outsource them

Question 71

Companies seeking competitive advantages in deliveries of components or finished goods to customers have found the outsourcing of their logistics function to be an attractive option

Question 72

Logistics outsourcing has few risks attached to it

Question 73

In rapidly changing markets, it makes sense for manufacturers to maintain their production facilities in-house

Question 74

Advantages of outsourcing new product development include outsiders' broader technical expertise and speed in not having to wait for internal resources to become available

Question 75

Problems can occur when companies outsource components that are critical to their final product's competitive well-being

Question 76

Firms using outside logistics providers can use freed up resources to focus on other marketplace-related competencies

Question 77

Companies with keen interests in supply chain coordination and the monitoring of marketplace developments are less likely to outsource their information technology function

Question 78

Developments in cross-border information technologies and services have made it easier for firms to outsource their distribution functions

Question 79

Outsourcing information technology needs is made easier because firms have few problems moving the IT function back in-house if needed

Question 80

Human resource functions have expanded in international companies to include helping the integration of foreign acquisitions, maintaining corporate intranets, and monitoring the activities of outside subcontractors