Question 1

________ is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.

Accepted Answer

Unit-load packaging-through palletizing, shrink-wrapping, or containerization-is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.

Question 2

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the "perform" group?

Accepted Answer

Packaging is intended to achieve a set of multilayered functions. These can be grouped into (1) perform, (2) protect, and (3) inform. Perform refers to (1) the ability of the product in the package to handle being transported between nodes in the global supply chain, (2) the ability of the product to be stored for typical lengths of time for a particular product category, and (3) the package providing the convenience expected by both the supply chain partners and the end-customers. The other items listed refer to the "protect" group of functions.

Question 3

Cost and ________ are the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.

Accepted Answer

Cost and production capacity are just the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.

Question 4

This type of factory-often with the same standards as the top factories in the global firm's system-is set up to overcome intangible and tangible barriers in the global marketplace.

Accepted Answer

A server factory is linked into the global supply chain for a global firm to supply specific country or regional markets around the globe. This type of factory-often with the same standards as the top factories in the global firm's system-is set up to overcome intangible and tangible barriers in the global marketplace.

Question 5

________ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

Accepted Answer

An outpost factory is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

Question 6

Which of the following situations would lead a firm to choose to decentralize production?

Accepted Answer

Of these options, decentralization of production makes most sense when the production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available. The other situations listed would lead a firm to choose concentration of production.

Question 7

Which of the following would lead a firm to choose a concentration of production?

Accepted Answer

Of these options, concentration of production makes most sense when important exchange rates are expected to remain relatively stable. The other situations listed would lead a firm to choose decentralization.

Question 8

This type of facility positions and allows customization of products for delivery to worldwide wholesalers or retailers or directly to consumers anywhere in the world.

Accepted Answer

A global distribution center (or warehouse) is a facility that positions and allows customization of products for delivery to worldwide wholesalers or retailers or directly to consumers anywhere in the world. Distribution centers (DCs) are used by manufacturers, importers, exporters, wholesalers, retailers, transportation companies, and customs agencies to store products and provide a location where customization can be facilitated.

Question 9

RSA is a bicycle manufacturing company. Which of the following is a make-or-buy decision that the company will have to make?

Accepted Answer

International businesses frequently face make-or-buy decisions, decisions about whether they should perform a certain value creation activity themselves or outsource it to another entity. Deciding whether or not to outsource production is one such decision.

Question 10

________ makes the most sense when differences among countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Accepted Answer

Concentration of production makes most sense when differences among countries in factor costs, political economy, and culture have a substantial impact on the costs of manufacturing in various countries.

Question 11

The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal is called

Accepted Answer

Reverse logistics is the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

Question 12

An advantage of buying component parts, or even an entire product, from independent suppliers is that

Accepted Answer

Inventory planning is of critical importance, so even if your firm can make the product equally well in terms of quality and expectations set, perhaps a better choice is to buy simply in order to strategically manage inventory (which is a cost center in the global supply chain).

Question 13

This is where cutting-edge production should take place, or at least be tested for implementation in other parts of the firm's production network.

Accepted Answer

A lead factory is intended to create new processes, products, and technologies that can be used throughout the global firm in all parts of the world. This is where cutting-edge production should take place, or at least be tested for implementation in other parts of the firm's production network.

Question 14

________ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Accepted Answer

Transportation refers to the movement of raw material, component parts, and finished goods throughout the global supply chain. It typically represents the largest percentage of any logistics budget and an even greater percentage for global companies because of the distances involved.

Question 15

There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in international purchasing activities as part of the firm's overall supply chain management strategy?

Accepted Answer

There are five strategic levels for global purchasing that can be undertaken by a global company. Companies at Level III engage in international purchasing activities as part of the firm's overall supply chain management strategy. As such, at the Level III stage, companies begin to recognize that a well-formulated and well-executed worldwide international purchasing strategy can be very effective in elevating the firm's competitive edge in the marketplace.

Question 16

Packaging, which comes in all shapes, sizes, forms, and uses, can be divided into three different types

Accepted Answer

Packaging comes in all shapes, sizes, forms, and uses. It can be divided into three different types: primary, secondary, and transit.

Question 17

Make-or-buy decisions are decisions about

Accepted Answer

International businesses frequently face make-or-buy decisions, decisions about whether they should perform a certain value creation activity themselves or outsource it to another entity. Deciding whether or not to outsource is one such decision.

Question 18

________ can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.

Accepted Answer

Global inventory management can be viewed as the decision-making process regarding the raw materials, work-in-process (component parts), and finished goods inventory for a multinational corporation.

Question 19

An advantage of engaging in in-house production of products and components is that

Accepted Answer

Proprietary product technology is unique to a firm. If the firm outsources the production of entire products or components containing proprietary technology, it runs the risk that those suppliers will expropriate the technology for their own use or that they will sell it to the firm's competitors. Thus, to maintain control over its technology, the firm might prefer to make such products or component parts in-house.

Question 20

Decentralization of production is appropriate when

Accepted Answer

Decentralization of production is appropriate when volatility in important exchange rates is expected.

Quiz 17: Global Production and Supply Chain Management