Question 1

Tangerine Inc. ,a computer manufacturing company,makes all computer components in-house.It can be said that:
A)Tangerine is likely to develop production expertise with minimum time and effort.
B)Tangerine is likely to reduce its fixed costs.
C)Tangerine is likely to achieve economies of scale.
D)Tangerine is likely to have more control over production time frames and deliveries.

Accepted Answer

The answer of Tangerine Inc. ,a computer manufacturing company,makes all...

Question 2

Which of the following is an important consideration for locating a firm's production?
A)The price of the firm's product compared to its weight and volume
B)The life cycle of the firm's product
C)The firm's culture and organizational hierarchy
D)The gray market activities in a location

Accepted Answer

The price of a firm's product compared to its weight and volume is an important consideration for locating production as it can impact transportation and shipping costs, ultimately affecting the overall cost of production.

Question 3

Aaron is a manager at Crimson Inc. ,an American consumer electronics company.He believes that to make in-house production worthwhile,Crimson must make at least the minimum efficient scale.Which of the following is an accurate statement that supports Aaron's belief?
A)Crimson needs to plan its production process from start to finish in order to avoid carrying excess inventory.
B)Crimson needs to consider whether it can produce enough of the product to make an investment in the production process.
C)Crimson needs to make its products internally to achieve economies of scale.
D)Crimson needs to customize its products for different target markets.

Accepted Answer

The answer of Aaron is a manager at Crimson Inc....

Question 4

Darren,a manager at Bronze Inc. ,believes that it is better to produce offshore than domestically.Which of the following is a true statement that supports his belief?
A)A company can take advantage of low labor costs in offshore locations.
B)A company can follow a single pricing strategy in all markets by producing offshore.
C)A company can evade taxation in offshore locations.
D)A company can avoid government intervention in offshore locations.

Accepted Answer

Producing offshore can often allow a company to take advantage of lower labor costs, which can contribute to increased profitability. However, options B, C, and D are not necessarily true in all cases and do not directly support the belief that it is better to produce offshore than domestically.

Question 5

Which of the following can influence a firm's choice of production location?
A)The firm's organizational hierarchy
B)The gray market activities in a location
C)The degree to which the firm's product is standardized
D)The life cycle of the firm's product

Accepted Answer

The answer of Which of the following can influence a...

Question 6

Moving production from outside a country back to the home country is known as _____.
A)homeshoring
B)insourcing
C)outsourcing
D)reshoring

Accepted Answer

Reshoring refers to the process of bringing back the production of goods and services to the company's home country from another country where it was previously outsourced.

Question 7

Magenta Inc. ,an Australian consumer electronics company,produces certain products in-house to ensure quality and availability.It also purchases the same products from suppliers to force competition and push innovation within the in-house unit.Given this information,it can be said that Magenta is engaged in _____.
A)global branding
B)dual sourcing
C)offshoring
D)rightsizing

Accepted Answer

Magenta Inc. is practicing dual sourcing by producing certain products in-house for quality control and availability, and purchasing the same products from suppliers to promote competition and innovation within the in-house unit.

Question 8

_____ are a major factor that makes certain areas more desirable as manufacturing locations.
A)Offset agreements
B)Foreign exchange rates
C)Value-added taxes
D)Turnkey projects

Accepted Answer

Foreign exchange rates can have a significant impact on the cost of labor and materials necessary for manufacturing, making some areas more cost-effective and desirable for production. Offset agreements, value-added taxes, and turnkey projects are not directly related to the location of manufacturing facilities.

Question 9

Maroon Inc.is a smartphone manufacturing company.All its activities related to transforming components into products for the end user,including the transfer of money and information,constitute its _____.
A)supply chain
B)marketing mix
C)product line
D)brand equity

Accepted Answer

The activities related to transforming components into products for the end user, including the transfer of money and information, constitute the supply chain. A supply chain includes all the processes involved in the production and distribution of a product or service, from the sourcing of raw materials or components to the delivery to the end user. Therefore, the correct option is A, supply chain. The marketing mix refers to the set of tools and strategies used by a company to promote its products or services, while the product line refers to a group of related products offered by a company. Brand equity refers to the value a brand adds to a product or service beyond its functional benefits.

Question 10

Amber Inc. ,a smartphone manufacturing company,produces high-quality,low-cost products.It effectively manages its supply chain.Its supply-chain members use environmentally friendly work practices.It can be said that Amber's supply chain is most likely to enable Amber to:
A)proactively manage product safety concerns.
B)use the same mix of marketing strategies in its foreign and domestic markets.
C)use a flexible cost-plus pricing strategy.
D)maintain its reputation as an ethical organization.

Accepted Answer

By ensuring that its supply-chain members use environmentally friendly work practices, Amber is effectively demonstrating its commitment to being an ethical organization. This is likely to help Amber maintain its reputation as an ethical organization, which can be beneficial for its brand image and customer loyalty. Choices A, B, and C are not directly related to the use of environmentally friendly work practices in Amber's supply chain.

Question 11

To minimize costs while maximizing value for end users,Argon Inc. ,a consumer electronics company,manages all the activities related to the transformation of individual components into products for the end users internally.Given this information,it can be said that Argon is most likely engaged in _____.
A)human resources management
B)financial management
C)supply-chain management
D)marketing management

Accepted Answer

Argon Inc.'s focus on minimizing costs and maximizing value suggests that they are trying to optimize their supply chain management activities to efficiently transform components into end products. Human resources management, financial management, and marketing management may be important for the overall success of the company, but they do not necessarily relate to the specific approach described in the given information.

Question 12

Chestnut Inc. ,a computer manufacturing company,effectively manages its supply chain.It can be said that Chestnut's supply chain is most likely to enable Chestnut to:
A)qualify for lower tariffs in foreign markets by reclassifying its products.
B)produce high-quality,low-cost products.
C)use the same mix of marketing strategies in its foreign and domestic markets.
D)use a flexible cost-plus pricing strategy.

Accepted Answer

Effective supply chain management allows for efficient and cost-effective production, which can result in high-quality products at a lower cost. Therefore, option B is the best choice. The other options are not directly related to supply chain management.

Question 13

Chandler is a manager at Zion Inc. ,a Canadian smartphone manufacturing company.Chandler believes that Zion should procure smartphone components from abroad instead of producing them in-house.Which of the following statements supports his belief?
A)Making components in-house requires a company to standardize its products and processes that leads to increased production costs.
B)Making components in-house does not offer a company control of sensitive knowledge.
C)Making components in-house requires a company to develop production expertise that takes considerable time and effort.
D)Making components in-house prevents companies from making stable price estimates.

Accepted Answer

The answer of Chandler is a manager at Zion Inc....

Question 14

Which of the following is an important consideration for a company when choosing a location for producing its product?
A)The image of the company's product and how that image relates to the production location
B)The price of the company's product compared to the price of its competitors' products in the market of the production location
C)The price of the company's product compared to the product's life cycle
D)The organizational hierarchy in the company

Accepted Answer

The image of the company's product and how it relates to the production location is important as it can affect consumer perception and purchasing behavior. For example, luxury brands may choose to produce their products in high-end locations to maintain their premium image.

Question 15

To make in-house production worthwhile,a company must make at least the _____.
A)minimum efficient scale
B)minimum wage scale
C)minimum pay scale
D)minimum time scale

Accepted Answer

The minimum efficient scale is the lowest level of production at which a company can achieve the lowest possible cost per unit. This means that if a company produces below this level, it would incur higher costs and may not be able to compete with other companies in the industry. Therefore, to make in-house production worthwhile, a company must produce at least at the minimum efficient scale.

Question 16

Salmon Inc. ,an American apparel company,has decided to move production from overseas back to the United States.Given this information,it can be said that Salmon is _____.
A)rightsizing
B)offshoring
C)outsourcing
D)reshoring

Accepted Answer

When a company decides to move production from overseas back to their home country, it is called "reshoring". Therefore, the best choice for the given information would be option D.

Question 17

Which of the following factors affects a firm's decision about production location?
A)The life cycle of the firm's product
B)The gray market of a location
C)The economic climate of a location
D)The firm's organizational hierarchy

Accepted Answer

The answer of Which of the following factors affects a...

Question 18

It is important to manufacture products geographically close to the final customer when they have a:
A)high weight-to-volume ratio.
B)high value-to-weight ratio.
C)low value-to-weight ratio.
D)low weight-to-volume ratio.

Accepted Answer

The answer of It is important to manufacture products geographically...

Question 19

It is less important to manufacture products geographically close to the end consumer when they have a:
A)high weight-to-volume ratio.
B)high value-to-weight ratio.
C)low value-to-weight ratio.
D)low weight-to-volume ratio.

Accepted Answer

When a product has a high value-to-weight ratio, it becomes more cost-effective to manufacture it far away from the end consumer and then transport it to the market rather than setting up a manufacturing plant close to the market. This is because the cost of transportation will be significantly lower than the cost of establishing a manufacturing plant, which will result in a lower overall cost of production.

Question 20

Which of the following products should be produced close to the final customer?
A)Gasoline
B)Coffee
C)Tea
D)Silk

Accepted Answer

Gasoline should be produced close to the final customer due to its high transportation cost and safety concerns related to its flammability and volatility.

Quiz 18: Global Operations and Supply-Chain Management

Tangerine Inc. ,a computer manufacturing company,makes all computer components in-house.It can be said that:

Which of the following is an important consideration for locating a firm's production?

Aaron is a manager at Crimson Inc. ,an American consumer electronics company.He believes that to make in-house production worthwhile,Crimson must make at least the minimum efficient scale.Which of the following is an accurate statement that supports Aaron's belief?

Darren,a manager at Bronze Inc. ,believes that it is better to produce offshore than domestically.Which of the following is a true statement that supports his belief?

Which of the following can influence a firm's choice of production location?

Moving production from outside a country back to the home country is known as _____.

_____ are a major factor that makes certain areas more desirable as manufacturing locations.

Maroon Inc.is a smartphone manufacturing company.All its activities related to transforming components into products for the end user,including the transfer of money and information,constitute its _____.

Amber Inc. ,a smartphone manufacturing company,produces high-quality,low-cost products.It effectively manages its supply chain.Its supply-chain members use environmentally friendly work practices.It can be said that Amber's supply chain is most likely to enable Amber to:

Chestnut Inc. ,a computer manufacturing company,effectively manages its supply chain.It can be said that Chestnut's supply chain is most likely to enable Chestnut to:

Chandler is a manager at Zion Inc. ,a Canadian smartphone manufacturing company.Chandler believes that Zion should procure smartphone components from abroad instead of producing them in-house.Which of the following statements supports his belief?

Which of the following is an important consideration for a company when choosing a location for producing its product?

To make in-house production worthwhile,a company must make at least the _____.

Salmon Inc. ,an American apparel company,has decided to move production from overseas back to the United States.Given this information,it can be said that Salmon is _____.

Which of the following factors affects a firm's decision about production location?

It is important to manufacture products geographically close to the final customer when they have a:

It is less important to manufacture products geographically close to the end consumer when they have a:

Which of the following products should be produced close to the final customer?