Question 1

According to the text,the cost of importing a foreign sourced product,including freight,insurance,and packing

Accepted Answer

The buyer must understand the terms of sale because international freight, insurance, and packing can add as much as 10 to 12 percent to the quoted price, depending on the sales terms.

Question 2

For purchases of capital goods such as manufacturing equipment,many U.S.buying organizations now use _____ to analyze purchasing decisions,including trade-in or future estimated salvage value.

Accepted Answer

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "life-cycle costing" to analyze purchasing decisions through the life of the purchased item, including trade-in or future estimated salvage value.

Question 3

Synchronous production has an advantage over just-in-time in that

Accepted Answer

Because work is assigned to each operation rather than to the entire system, as in JIT, there is no need for more work in process than what is actually being worked on. Inventory can also be placed near the bottleneck to avoid any shutdown in this crucial operation, and sometimes, unlike the case with JIT, there may even be a quality control inspector to check the bottleneck operation's input.

Question 4

Quality circles meet to discuss ways to improve

Accepted Answer

A quality circle is a small work group that meets periodically to discuss ways to improve its functional areas and the quality of the product.

Question 5

Problems associated with e-procurement include

Accepted Answer

Security is often another significant concern for e-procurement. For B2B electronic commerce to achieve its full potential, access to the company's internal systems from outside is critical. Companies are wary of opening up the details of their business-including pricing, inventory, or design specifications-to competitors, to avoid risking the loss of brand equity and margins. In addition, exposing internal business systems to access via the Internet can expose the firm to a wide range of potential security issues, such as unauthorized entry (i.e., "hacking") and fraudulent orders.

Question 6

Mass customization

Accepted Answer

Mass customization is usually appropriate in situations where it is feasible to delay differentiating the product for a particular customer until the last possible point in the supply network. This typically requires that the company reconceptualize the design of its product as well as the design and integration of the processes used for producing and delivering the product to customers. In practice, this means reconceptualizing and often reconfiguring the company's entire supply chain.

Question 7

Which of the following is not true about Six Sigma?

Accepted Answer

Six Sigma literally means a maximum of 3.4 defects per million occurrences, versus the two- or three-sigma level (more than 300,000 unsatisfactory experiences per million customer contacts) at which most businesses operate.

Question 8

Benefits of global electronic purchasing initiatives include

Accepted Answer

Emerging industry-based business-to-business (B2B) exchanges can help optimize the supply chain across an entire network of organizations, not merely within a single company. These exchanges can create value by aggregating the purchasing power of buyers, improving process efficiency, integrating supply chains, enhancing content dissemination, and improving overall market efficiency within and across nations.

Question 9

The basic approaches to mass customization include all of the following except

Accepted Answer

There are four basic approaches to mass customization: (1) collaborative-a company helps customers choose the required product features; (2) adaptive-the company offers a standard product that users can modify themselves; (3) cosmetic-only the product's presentation is customized, such as packaging or color; and (4) transparent-customers are provided with individualized product or service offerings without their knowing it, such as on website interfaces.

Question 10

According to the text,when examining production activities,managers are quick to recognize that inventory costs are a major factor and getting rid of inventory can lower labor cost by ______ or more.

Accepted Answer

When examining production activities, managers are quick to recognize that inventory costs are a major factor. Getting rid of inventory can lower labor cost by 40 percent or more.

Question 11

Just-in-time

Accepted Answer

Parts and components have to be delivered to each point in the production process at the time they are needed, hence the name.

Question 12

Synchronous manufacturing systems

Accepted Answer

Synchronous manufacturing is also called the theory of constraints (TOC).

Question 13

Total quality management

Accepted Answer

A companywide management approach in which the entire organization is managed so that it excels on all dimensions of product and services that are important to the customer.

Question 14

An entire manufacturing system with unbalanced operations that emphasizes total system performance is

Accepted Answer

An entire manufacturing system with unbalanced operations that emphasizes total system performance is synchronous manufacturing.

Question 15

The output of a synchronized manufacturing system is set

Accepted Answer

The system's output is determined by and limited to the output of the slowest operation, or bottleneck, that is working at full capacity.

Question 16

Just-in-time requires all of the following except

Accepted Answer

It is necessary to reduce process time, but not possible to eliminate it entirely.

Question 17

Many American manufacturers made the mistake of rushing to copy parts of Japan's just-in-time production system without considering

Accepted Answer

JIT is a total system covering the management of people, materials, and relationships both inside the company and with suppliers.

Question 18

A ___________ is the name given to an operation in a synchronous manufacturing system whose output sets the limit for the entire system's output.

Accepted Answer

A bottleneck is the name given to an operation in a synchronous manufacturing system whose output sets the limit for the entire system's output.

Question 19

"Little JIT" refers to

Accepted Answer

Many manufacturers that attempted to transform their operations by adopting JIT principles mistakenly incorporated only one part of JIT: the narrow focus on managing goods inventories, sometimes called "little JIT."

Question 20

Which of the following is not true about "big JIT"?

Accepted Answer

"Big JIT" is a total system covering the management of people, materials, and relationships with suppliers (this total system is also called lean production). It requires a thorough and companywide commitment to managing quality, of which continuous improvement is an integral part.

Quiz 18: Appendix C: Global Operations and Supply Chain Management