Question 1

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

Accepted Answer

Global sourcing works best when transportation and tariff costs are minimal, but it is more efficient for standardized, rather than customized, components and materials because standardized items can be produced in large quantities and stored until needed, reducing the need for quick, often expensive, customization and shipping.

Question 2

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

Accepted Answer

Regional sourcing strategies leverage the benefits of regional trading agreements, common technical standards, and similar demand patterns to optimize supply chain operations, reduce costs, and improve efficiency.

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

Accepted Answer

False

Question 4

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

Accepted Answer

Global supply chain strategies often lead to cost advantages by providing access to superior suppliers around the world, allowing companies to consolidate their manufacturing and distribution facilities for efficiency, and achieving economies of scale in purchasing due to larger consolidated orders.

Question 5

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

Accepted Answer

National supply chains are effective when there are advantages to producing goods domestically, such as lower costs or specialized skills, and when large-scale contractors can leverage economies of scale to make domestic production cost-competitive with imports.

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

Accepted Answer

The answer of Suppliers are fully integrated into global sourcing...

Question 7

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

Accepted Answer

Global supply chain differentiation advantages typically include access to better suppliers and purchasing scale economies, but not the consolidation of manufacturing and distribution facilities, which is more related to cost efficiency and operational strategy rather than differentiation.

Question 8

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

Accepted Answer

Differentiation in the global supply chain can lead to superior service levels by offering unique and efficient logistics, customer service, and delivery capabilities. It also contributes to new product development by enabling faster and more innovative responses to market demands and customer needs, leveraging global insights and resources.

Question 9

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

Accepted Answer

The free trade movement, homogenization of global demand, and increased international competition are factors that drive globalization and influence global supply chains by promoting efficiency and reducing barriers to trade.

Question 10

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

Accepted Answer

Longer supply chains can be more viable for simple, standardized materials and components because these items have predictable demand, lower risk of obsolescence, and are less affected by delays, making the complexity and length of the supply chain less critical.

Question 11

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

Accepted Answer

Corporate catalysts contribute to global supply chains by enhancing competitive advantages through cost reduction and differentiation, making products or services more appealing or affordable to consumers.

Question 12

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

Accepted Answer

This statement is true because full integration into global sourcing systems involves the seamless connection of all parties (customers, manufacturers, distributors, and suppliers) through common information systems, enabling efficient communication, coordination, and process management across the global supply chain.

Question 13

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

Accepted Answer

Short supply chains are preferred in complex market needs because they can offer quicker response times, better control over the supply process, and reduced risks related to logistics and transportation, thus better meeting the demands for a variety of products, segments, and short delivery times.

Question 14

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

Accepted Answer

Over time, as suppliers and customers (manufacturers) work together, share information, and fulfill their commitments, trust is built, leading to stronger and more collaborative relationships.

Question 15

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

Accepted Answer

The answer of Global supply chains are the means that...

Question 16

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

Accepted Answer

Long supply chains tend to be less flexible and slower to respond to complex market needs, making them less suitable for environments requiring a wide variety of products, segmentation, and short delivery times.

Question 17

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

Accepted Answer

The answer of Corporate catalysts to global supply chains include...

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

Accepted Answer

These trends reflect the evolving dynamics in supply chain management aimed at increasing efficiency, flexibility, and focusing on core competencies by leveraging external expertise for certain functions.

Question 19

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

Accepted Answer

The answer of Environmental catalysts to global supply chains include...

Question 20

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

Accepted Answer

Global supply chains are designed to optimize production and distribution by leveraging differences among nations in labor costs, expertise, manufacturing capabilities, and availability of resources. This allows companies to reduce costs, improve efficiency, and access specialized skills and materials.

Quiz 10: Global and Multi-Market Supply Chain Management