Question 1

Pioneer Plastics is based in the United States and has transferred its information technology processes to suppliers in Canada. What is this an example of?

Accepted Answer

Nearshoring refers to transferring business processes to a nearby country, in this case, from the United States to Canada.

Question 2

One way to reduce the risks for a business that operates on just-in-time principles is to

Accepted Answer

Sourcing inputs from several suppliers located in different countries can reduce risks by diversifying supply sources, thus minimizing the impact of disruptions from any single supplier or region.

Question 3

Under a just-in-time (JIT) inventory system, it is likely that the ________ will increase.

Accepted Answer

A just-in-time (JIT) inventory system aims to increase efficiency by receiving goods only as they are needed in the production process, which typically results in higher inventory turnover as inventory is minimized and moves quickly through the system.

Question 4

During a planning meeting, the environmental team discusses how returned items should be disposed of or recycled. What aspect of the global supply chain are they discussing?

Accepted Answer

Reverse logistics involves the process of moving goods from their final destination for the purpose of capturing value, or proper disposal, which includes the recycling or disposal of returned items.

Question 5

James works in the after-market service department of All-Grain Food Products. He recently worked on a product recall for one of the company's most popular brands. Which operational objective is James responsible for within the global supply chain?

Accepted Answer

James is responsible for life-cycle support, which includes managing product recalls as part of after-market services to ensure customer satisfaction and safety.

Question 6

Marble Counters Inc. prides itself on quality control and advertises that "we won't ship a product unless we make it the way you want." Based on this, Marble Counters Inc. most likely

Accepted Answer

Marble Counters Inc.'s statement suggests they have control over the production process, indicating they make the products themselves to ensure they meet customer specifications.

Question 7

The ________ function of packaging refers to the ability of a product in a package to handle being transported between areas within the global supply chain.

Accepted Answer

The answer of The ________ function of packaging refers to...

Question 8

Ride Inc., a manufacturer of car components, wants to set up a system that will send invoices to its customers once orders for input supply are placed. What should the company use to perform this function?

Accepted Answer

Electronic Data Interchange (EDI) is used to automate the exchange of business documents, such as invoices, between companies, making it suitable for sending invoices automatically when orders are placed.

Question 9

Companies rely on an EDI system to

Accepted Answer

EDI (Electronic Data Interchange) is used by companies to exchange business documents and data electronically between organizations.

Question 10

As the inventory control manager for a group of retail stores, Henry calls the DoubleBlue Jeans warehouse when he needs to restock this product because the manufacturer stores all of its products there. Another name for this warehouse would be a(n)

Accepted Answer

A distribution center is a warehouse or storage facility where products are stored and then distributed to retail stores or customers. In this context, the DoubleBlue Jeans warehouse acts as a distribution center for the manufacturer.

Question 11

The drawback of a just-in-time inventory system is that it

Accepted Answer

A just-in-time inventory system minimizes inventory levels, which means there is little to no buffer stock available to absorb unexpected demand or supply chain disruptions.

Question 12

A major cost savings from just-in-time inventory systems comes from

Accepted Answer

Just-in-time inventory systems reduce costs by minimizing inventory levels and speeding up inventory turnover, which reduces storage and holding costs.

Question 13

One characteristic of a just-in-time (JIT) inventory system is that

Accepted Answer

In a JIT inventory system, parts are delivered and used in the manufacturing process immediately, minimizing the need for warehousing.

Question 14

________ is a hidden cost to basing production in a foreign location.

Accepted Answer

Poor product quality can be a hidden cost when basing production in a foreign location due to potential issues with local manufacturing standards, skills, or quality control processes.

Question 15

How does a just-in-time inventory system help enhance product quality?

Accepted Answer

By receiving parts only as needed, defects are identified and addressed more quickly, leading to improved product quality.

Question 16

Charcoal Corp. is an electronics retail giant with offices in Atlanta. The company decides to build a facility in Silicon Valley where new products can be developed since this area is known for technological innovation. Which type of facility is Charcoal Corp. building?

Accepted Answer

The answer of Charcoal Corp. is an electronics retail giant...

Question 17

Which country pioneered the concept of just-in-time inventory?

Accepted Answer

Japan pioneered the concept of just-in-time inventory, particularly through the Toyota Production System, which aimed to increase efficiency by reducing waste and ensuring that parts and materials arrive just as they are needed in the production process.

Question 18

If a firm possesses proprietary product technology, the best option for that firm would be to

Accepted Answer

Manufacturing in-house helps the firm maintain control over its proprietary technology, ensuring it retains its competitive advantage and prevents the technology from being leaked or copied by competitors.

Question 19

NewTone Manufacturing does not keep excess stock on hand. When orders are received, the company brings in parts from suppliers, creates products, and fulfils the order. This represents a ________ system

Accepted Answer

NewTone Manufacturing's approach of not keeping excess stock and ordering parts as needed aligns with a just-in-time inventory system, which minimizes inventory and reduces waste by receiving goods only as they are needed in the production process.

Question 20

The ________ operational objective refers to integrating a control system across global supply chain functions to eliminate global supply chain disruptions.

Accepted Answer

Variance reduction refers to the integration of a control system across global supply chain functions to minimize disruptions by reducing inconsistencies and variations in processes.

Quiz 15: Global Production and Supply Chain Management