Question 1

The ability of the production process to make different kinds of products and to adjust the volume of output is known as ________.

Accepted Answer

Flexibility refers to the ability of the production process to adapt to changes in product specifications and volume of output. This allows a company to respond quickly to market demands and changing customer preferences. Quality control refers to the measures taken to ensure that products meet certain standards of quality. Dependability refers to the consistency of the production process in delivering products on time and to the expected quality. Innovation refers to the development of new products or processes.

Question 2

The need for greater efficiency, which is closely linked to ________, forces MNEs to align their overall strategy with operations.

Accepted Answer

The need for efficiency is closely linked with cost reduction. In order to be efficient, MNEs need to reduce costs in their operations, which forces them to align their overall strategy with operations. This means that they need to find ways to streamline their processes and reduce waste, which requires a coordinated approach across the entire organization. Quality control, flexibility, and higher costs may also be important factors, but they are not directly linked to the need for efficiency in the same way that cost reduction is.

Question 3

What is a supply chain? How does a supply chain differ from materials management and logistics?

Accepted Answer

A company's supply chain encompasses the coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer.Logistics (also called materials management)is an important dimension of the supply chain.Logistics is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.Materials management is inbound logistics or the movement and management of materials and products from purchasing through production.The difference between supply chain management and logistics is one of degree.Logistics focuses much more on the transportation and storage of materials and final goods, whereas supply chain management extends beyond that to include the management of supplier and customer relations.

Question 4

When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ________.

Accepted Answer

Nearshoring refers to the practice of moving business operations to a nearby country, often to reduce costs while staying relatively close to the original country's market. In this case, GM moving operations to Mexico to be closer to the American market is an example of nearshoring.

Question 5

In a global supply chain, suppliers must be part of the manufacturer's organizational structure.

Accepted Answer

Suppliers are not part of the manufacturer's organizational structure. They are independent entities that provide materials or services to the manufacturer. However, they are an important part of the supply chain and need to be managed effectively to ensure timely delivery of goods and services.

Question 6

Logistics is also known as materials management.

Accepted Answer

Logistics and materials management are terms that are often used interchangeably as they both involve the planning, organizing, and control of the flow of goods and materials from point of origin to point of consumption.

Question 7

Gates Manufacturing is striving to improve its performance reliability, speed of delivery, and product reliability.Gates is most likely focusing on a(n)________ strategy.

Accepted Answer

Gates is most likely focusing on a dependability strategy because it is striving to improve its performance reliability, speed of delivery, and product reliability. These are all factors that contribute to the dependability of a product or service.

Question 8

Deciding whether to establish production facilities in many different countries or in one centralized location is part of the ________.

Accepted Answer

The decision of whether to establish production facilities in many different countries or in one centralized location is part of the manufacturing configuration. This decision depends on various factors such as cost of labor, transportation costs, tariffs, taxes, and regulations. A centralized location can help reduce costs through economies of scale, but having production facilities in multiple countries can help mitigate risks such as supply chain disruptions, political instability, and currency fluctuations. Ultimately, the best choice depends on the specific context and priorities of the company.

Question 9

Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy?

Accepted Answer

The three basic configurations that MNEs consider when establishing a global manufacturing strategy are regional manufacturing, centralized manufacturing, and multidomestic manufacturing. Multicultural manufacturing is not a commonly used term in this context, and thus is not one of the basic configurations.

Question 10

When a company has improved its operations efficiency so much that it decide to move back to its home country, this is called ________.

Accepted Answer

Onshoring refers to a situation where a company relocates its operations back to its home country due to improved efficiency and cost-effectiveness. This is the opposite of offshoring, where a company moves its operations to another country to take advantage of lower labor costs. Nearshoring involves relocating operations to a nearby country with similar time zones and cultural similarities. Outsourcing refers to the practice of hiring external companies to handle certain functions or processes.

Question 11

A multidomestic configuration is most important when ________.

Accepted Answer

A multidomestic configuration is most important when demand in individual countries becomes significant. This configuration allows for customization and adaptation of products and strategies to meet the unique needs and preferences of customers in each country. It is not necessary when demand decreases significantly or when the company focuses on exporting or offers low-priced, standardized products.

Question 12

________ manufacturing is any manufacturing that takes place in a country different from the home country.

Accepted Answer

Offshore manufacturing refers to the practice of a company moving its production or manufacturing to a different country where labor costs are lower or where resources are more readily available. This type of manufacturing is also known as offshoring.

Question 13

In the context of manufacturing strategy, the degree of consistency between the foreign investment decision and the company's competitive strategy is known as ________.

Accepted Answer

Compatibility refers to the degree of consistency between the foreign investment decision and the company's overall competitive strategy. Coordination refers to the alignment of various functional strategies within the company. Control refers to the mechanisms put in place to monitor and manage the performance of the foreign investment. Configuration refers to the structure and layout of the manufacturing process.

Question 14

Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe.Roland is most likely using a ________ manufacturing strategy.

Accepted Answer

Roland Enterprises is using a regional manufacturing strategy by having a facility in France to serve customers throughout Europe. This involves manufacturing products in a specific region to serve that region's market. It is different from a centralized strategy where all manufacturing is located in one central location or a global strategy where products are manufactured in one location and distributed globally. It is also different from a country-specific strategy where products are customized or adapted specifically for a particular country.

Question 15

Once a firm has determined what its manufacturing configuration will be, and has coordinated its supply chain, it must create a(n)________ system to ensure that the firm's strategies are carried out.

Accepted Answer

A control system is necessary to monitor and manage the firm's operations to ensure that the intended strategies are implemented effectively. This system allows the firm to track progress, identify potential problems, and take corrective actions as needed. A centralized system may be part of the control system, but it is not the only component. The terms multidomestic and offshore are not applicable in the context of creating a control system.

Question 16

Logistics is also known as ________.

Accepted Answer

Logistics and materials management are often used interchangeably as they both involve the movement and storage of goods, as well as coordinating the flow of products from the point of origin to the point of consumption. Internal logistics and the internal supply chain refer specifically to the movement of goods within an organization, while value-added management involves adding value to products or services through the supply chain. However, none of these terms are as commonly used as materials management.

Question 17

Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods.Jordan is most likely a manager involved with ________.

Accepted Answer

Jordan's responsibilities of supervising the transportation and storage of materials and final goods indicate that he is a manager involved with logistics. Quality control is more concerned with ensuring that the products meet the desired quality standards, whereas offshoring is related to the outsourcing of business processes to other countries. Inventory management may also be related to logistics, however, given the emphasis on transportation and storage, it is more appropriate to consider logistics as the primary area of focus.

Question 18

Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?

Accepted Answer

The term that refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer is supply chain.

Question 19

Bocce Shoes, an Italian firm, set up a production facility in Vietnam to manufacture the firm's line of athletic shoes.Bocce is most likely using a(n)________ strategy.

Accepted Answer

Bocce Shoes setting up a production facility in Vietnam indicates that they are trying to achieve efficiency and cost savings by outsourcing their production to a country with lower labor costs. This is a classic example of an efficiency/cost strategy.

Question 20

Which of the following BEST describes a major difference between supply chain management and logistics?

Accepted Answer

Supply chain management involves managing the entire network of suppliers, manufacturers, distributors, and customers, whereas logistics primarily focuses on the transportation and storage of goods. Logistics is a subset of supply chain management and deals with the physical flow of goods within the supply chain.

Quiz 18: Global Manufacturing and Supply Chain Management