Question 1

________ is the process of a firm having inputs supplied to it for the production process.

Accepted Answer

Sourcing refers to the process of a firm acquiring inputs or materials from external suppliers for use in the production process. This can involve identifying potential suppliers, negotiating contracts, and managing relationships with those suppliers to ensure a steady supply of inputs. Subcontracting, external production, and offshoring are all related concepts but refer to different aspects of the production process. Subcontracting involves hiring another firm to complete a specific task or component of the production process, while external production refers to outsourcing the entire production process to a third-party provider. Offshoring refers to relocating all or part of a business operation to another country.

Question 2

Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system. Fortis most likely uses ________.

Accepted Answer

Fortis Manufacturing Systems uses a statistical approach and scrutinizes the firm's entire production system, which is in line with Six Sigma processes. Six Sigma is a highly focused system of quality control that uses statistical methods to identify and eliminate defects in a company's processes and products. The goal of Six Sigma is to minimize variability and achieve near-perfection in all aspects of operations.

Question 3

________ is the measuring of performance so that companies can respond appropriately to changing conditions.

Accepted Answer

Control involves the measuring of performance so that companies can respond appropriately to changing conditions.

Question 4

Before the strong emphasis on zero defects,U.S. companies operated under the premise of ________,which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects.

Accepted Answer

The concept of acceptable quality level allowed for a certain level of poor quality in products, with the assumption that service warranties and repair facilities would address any defects that were found. This was a common approach taken by U.S. companies before the strong emphasis on zero defects and the implementation of quality management systems like Six Sigma and ISO 9000. Just-in-time inventory management (JIT) is a supply chain management strategy that focuses on reducing inventory costs and waste by only producing and delivering products as they are needed, and is not directly related to quality control.

Question 5

What are the three levels of quality standards?

Accepted Answer

The three levels of quality standards are general (applicable across various industries), industry-specific (tailored to particular industry requirements), and company (specific to a company's internal standards and processes).

Question 6

Which of the following is most likely a true statement about using the Internet in supply chain management?

Accepted Answer

The Internet is a global network accessible to anyone with an internet connection, making it universally accessible. It has the potential to increase speed and efficiency in supply chain management.

Question 7

ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers. ACE is most likely engaging in ________.

Accepted Answer

The answer of ACE Computers established an assembly operation in...

Question 8

What is the main information-related challenge in global supply chain management?

Accepted Answer

One of the main challenges in global supply chain management is managing networks in emerging markets where there is a lack of technology. This makes it difficult to manage and track supply chain processes through the Internet.

Question 9

________ is the linking or integrating of activities into a unified system.

Accepted Answer

Coordination involves linking or integrating activities into a unified system. Control refers to monitoring and regulating activities to ensure they align with organizational goals. Configuration refers to the arrangement of components in a system, and compatibility refers to the ability of different systems or components to work together without issues.

Question 10

Quality is defined as ________.

Accepted Answer

Quality is about meeting or exceeding the expectations of the customer. While meeting international or internal quality standards is important, ultimately it is the customer who determines whether a product or service is of high quality. Meeting a low price point does not necessarily equate to high quality.

Question 11

The Japanese approach to quality is total quality management (TQM),which stresses which of the following principles?

Accepted Answer

The Japanese approach to quality is total quality management (TQM) which emphasizes on principles such as customer satisfaction, employee involvement, and continuous improvements. These principles allow for a focus on designing, developing, and continuously improving products and services to meet and exceed customer expectations.

Question 12

Amazon relies on the Internet to join together suppliers with companies and companies with customers. Amazon is most likely using ________.

Accepted Answer

Amazon's reliance on the Internet to facilitate online transactions with suppliers and customers falls under the category of e-commerce. Value-added networks and electronic data interchange are more commonly used for B2B transactions between companies, while private technology exchange refers to the exchange of proprietary technology between two organizations.

Question 13

All of the following tend to be more expensive when sourcing abroad,EXCEPT ________.

Accepted Answer

Labor rates tend to be lower in many countries outside of the United States, so sourcing abroad may actually result in lower labor costs. However, transportation costs, inventory holding costs, and brokers and agents fees are all expenses that may increase when sourcing abroad due to factors such as longer distances, customs clearance procedures, and language barriers.

Question 14

________ is an online collaboration model that brings manufacturers,distributors,value-added retailers,and customers together to execute trading transactions.

Accepted Answer

Private technology exchange (PTX) is specifically designed to facilitate online collaboration among different parties in the supply chain, including manufacturers, distributors, value-added retailers, and customers, for trading transactions.

Question 15

Which of the following is a set of universal standards for a globally accepted quality assurance system?

Accepted Answer

ISO 9000 is a set of international standards that provide guidelines for a quality management system. It is globally recognized and widely used as a framework for quality assurance. Just-in-time inventory management, Six Sigma, and total quality management are specific methodologies or approaches to quality management, but they do not provide a universally accepted set of standards like ISO 9000 does.

Question 16

MedCo uses an IT system that labels a product with an electronic tag to provide realtime information. Which of the following does MedCo most likely use?

Accepted Answer

MedCo most likely uses RFID (radio frequency ID) to label their products with an electronic tag and provide real-time information. RFID tags use radio frequency signals to communicate with a reader, allowing for quick and accurate tracking of products. EDI (electronic data interchange) is a system for exchanging structured electronic documents between businesses, PTX (private technology exchange) is not a commonly used term in the context of information systems, and ERP (enterprise resource planning) is a software system for managing an organization's resources such as finances, inventory, and human resources, but it does not necessarily involve electronic tagging of products.

Question 17

Giga-Mart has an IT system that links the firm's suppliers,manufacturers,customers,and intermediaries. Giga-Mart most likely has a(n)________,

Accepted Answer

EDI (electronic data interchange) is a system that allows companies to exchange electronic documents (such as purchase orders and invoices) with their trading partners in a standardized format. This allows for faster and more accurate processing of transactions, and can improve supply chain efficiency. Giga-Mart's IT system, which links its suppliers, manufacturers, customers, and intermediaries, is likely using EDI to facilitate these transactions. TQM (total quality management) and JIT (just-in-time) are management philosophies and production strategies, respectively, that are not directly related to the use of IT systems. ERP (enterprise resource planning) is a type of software that integrates various business processes and functions, but the question does not provide enough information to determine whether or not Giga-Mart is using an ERP system.

Question 18

Which of the following is NOT a major reason that companies adopt IT systems?

Accepted Answer

Maintaining effective arms' length relationships with customers is not a major reason that companies adopt IT systems. While IT systems can certainly assist in managing customer relationships, the primary reasons for adoption typically revolve around improving efficiency, managing inventory, and communication with suppliers.

Question 19

Alta Designs is considering the idea of global sourcing. What would be the most likely result for Alta Designs?

Accepted Answer

Global sourcing can help companies like Alta Designs lower costs by finding cheaper materials or labor in other countries, and it can also improve quality by accessing suppliers with specialized skills or technologies.

Question 20

An element of total quality management (TQM)that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ________.

Accepted Answer

The element of TQM that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as kaizen. Kaizen is a Japanese term that means "change for the better" or "continuous improvement." It involves making small, incremental changes to processes, products, and services to improve quality and efficiency. Kaizen is a key component of TQM and is often used in conjunction with other quality improvement methodologies such as Six Sigma and kanban. AQL, on the other hand, is a quality control tool used to determine the maximum number of defective units that are acceptable in a batch of products.

Quiz 17: Global Manufacturing and Supply Chain Management