Question 1

The production and supply chain management of an international firm are independent of each other.

Accepted Answer

The production and supply chain management of an international firm are closely interdependent. Production decisions and activities affect the supply chain, and effective supply chain management can enhance production efficiency and effectiveness.

Question 2

A wide product variety makes it easier for a firm to increase its production efficiency and thus reduce its unit costs.

Accepted Answer

A wide product variety often complicates production processes, leading to inefficiencies and higher unit costs due to increased complexity and the need for more resources.

Question 3

In international business,a relatively high level of fixed costs can make it economical to perform a particular activity in several locations at once.

Accepted Answer

A high level of fixed costs typically makes it more economical to concentrate activities in fewer locations to achieve economies of scale and spread the fixed costs over a larger output.

Question 4

Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Accepted Answer

Flexible manufacturing technologies enable companies to produce a wider range of products while maintaining economies of scale, which were once only possible through mass production of a standardized output.

Question 5

A firm that improves its quality control cannot reduce its costs of value creation simultaneously.

Accepted Answer

Improving quality control can lead to reduction in rework and warranty costs and also improve customer satisfaction and loyalty, which can ultimately lead to cost savings and higher profits.

Question 6

In recent years,the trend among U.S.firms is to outsource the "production" of certain service activities to developing nations where labor costs are lower.

Accepted Answer

This statement is true. Many U.S. firms have been outsourcing service activities to developing nations where labor costs are lower in order to reduce costs and increase profits. This is often referred to as offshoring or outsourcing services.

Question 7

In terms of minimum efficient scale of output,the "unit cost curve" rises with output until a certain output level is reached,at which point further increases in output realize little reduction in unit costs.

Accepted Answer

The answer of In terms of minimum efficient scale of...

Question 8

The level of output at which most plant-level scale economies are exhausted is referred to as the maximum efficient scale of output.

Accepted Answer

The answer of The level of output at which most...

Question 9

The concept of economies of scale tells us that as plant output expands,unit costs decrease.

Accepted Answer

Economies of scale occur when a company can produce more goods at a lower cost per unit due to factors such as spreading fixed costs over more units and taking advantage of bulk purchasing power. As a result, increasing plant output typically leads to decreased unit costs, thus making option A true.

Question 10

Currency appreciation can transform a low-cost location into a high-cost location.

Accepted Answer

Currency appreciation leads to the increased value of a country's currency relative to other currencies, thereby making exports more expensive and imports cheaper. This can lead to an increase in the cost of living and production, making a previously low-cost location into a high-cost location.

Question 11

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Accepted Answer

The ability to adapt to changes in consumer demand is important in international business as it allows a firm to stay competitive and meet the needs of their customers. Being able to quickly adjust production and marketing strategies can give a firm an advantage over competitors who may be slower to respond to shifts in demand.

Question 12

With flexible manufacturing technologies,a firm can manufacture products customized to various national markets at a single factory sited at the optimal location but will nevertheless incur a significant cost penalty.

Accepted Answer

The answer of With flexible manufacturing technologies,a firm can manufacture...

Question 13

Flexible machine cells cannot be used for mass customization.

Accepted Answer

Flexible machine cells can be used for mass customization as they are designed to quickly adapt and reconfigure to produce a wide range of products with varying specifications.

Question 14

Industrial products have few national differences in consumer taste and preference,hence the need for local responsiveness is reduced for such products.

Accepted Answer

The answer of Industrial products have few national differences in...

Question 15

With the advent of flexible manufacturing technologies and mass customization,establishing manufacturing facilities in each major market in which the firm is active is becoming less attractive.

Accepted Answer

With flexible manufacturing technologies and mass customization, it is now possible for firms to centralize manufacturing facilities and serve multiple markets from one location. This makes establishing manufacturing facilities in each major market less attractive.

Question 16

The objectives of reducing costs and increasing quality in a firm are independent of each other.

Accepted Answer

Reducing costs and increasing quality are often linked and interdependent objectives. Improving the quality of a product or service can lead to a reduction in costs by minimizing waste, errors, and rework. Similarly, reducing costs can often lead to a decrease in the quality of a product or service if necessary investments in quality assurance and control are not made. Therefore, firms often strive to balance these objectives and optimize their overall performance.

Question 17

In terms of Six Sigma,the higher the number of "sigmas," the greater the number of errors.

Accepted Answer

The higher the number of "sigmas," the lower the number of errors. Six Sigma aims to achieve 3.4 defects or errors per million opportunities, which equates to a sigma level of 6.

Question 18

In international business,production and supply chain functions accommodating demands for local responsiveness work independent of host-government demands.

Accepted Answer

Production and supply chain functions accommodating demands for local responsiveness must work in compliance with local laws and regulations, which are often influenced by host-government demands. Therefore, they cannot work entirely independent of host-government demands.

Question 19

In recent years,time-based competition has become less important in international business.

Accepted Answer

Time-based competition is still highly valued and is one of the key factors in international business. Companies that can deliver their products or services quickly and efficiently have a competitive advantage. However, other factors such as quality, innovation, and customer service have also become increasingly important.

Question 20

W.Edward Deming believed that achieving better quality requires the commitment of everyone in a company.A.V.Feigenbaum.Deming argued that management has the responsibility to train employees in new skills to keep pace with changes in the workplace.In addition,he believed that achieving better quality requires the commitment of everyone in the company.

Accepted Answer

This statement accurately reflects Deming's beliefs about quality and management's responsibility.

Quiz 15: Global Production and Supply Chain Management