Arizona State University - MGT 302

Chapter 17 Global Production and Supply Chain Management

True / False Questions

1)Lowering the costs is one of the objectives of the production and logistics function of an international firm.

 

True    False

 

2. Deming, the proponent of total quality management, suggested that management shouldn't attempt to train employees in new skills.

 

True    False

 

3. A production process would create just 1 defect per six thousand products at Six Sigma.

 

True    False

 

4. Other things being equal, a firm should locate its various manufacturing activities where the relative factor costs are conducive to the performance of those activities.

 

True    False

 

5. The argument for centralizing production will be greater if the minimum efficient scale of a plant relative to total global demand is low.

 

True    False

 

6. Mass customization facilitates product customization at low costs.

 

True    False

 

7. Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.

 

True    False

 

8. Products such as electronic components and pharmaceuticals have low value-to-weight ratios.

 

True    False

 

9. Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

 

True    False

10. Modern consumer products such as personal computers serve universal needs.

 

True    False

 

11. Concentration of production is not favored when important exchange rates are expected to remain relatively stable.

 

True    False

 

12. Decentralization of production is appropriate when the product does not serve universal needs.

 

True    False

 

13. Poor product quality and low productivity are hidden costs associated with basing production in a foreign location.

 

True    False

 

14. Global learning refers to the idea that valuable knowledge does not reside just in a firm's domestic operations.

 

True    False

 

15. Make-or-buy decisions are decisions that concern the components to be used in a production process.

 

True    False

 

16. Firms would prefer buying component parts, or an entire product, from independent suppliers to protect proprietary product technologies.

 

True    False

 

17. Firms can increase flexibility by producing all parts of a product in-house.

 

True    False

 

18. The firm that sources from independent suppliers has fewer subunits to control.

 

True    False

 

19. Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

 

True    False

 

20. Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

 

True    False