 |
| 1 | |
Production is the activity that controls the transmission of physical materials through the value chain. |
| | A) | True |
| | B) | False |
|
|
|
| 2 | |
Deming believed that work standards should be defined not only as numbers or quotas, but also should include some notion of quality to promote the production of defect-free output. |
| | A) | True |
| | B) | False |
|
|
|
| 3 | |
ISO 9000 certification process has not been very bureaucratic and not too costly for many firms |
| | A) | True |
| | B) | False |
|
|
|
| 4 | |
The concept of economies of scale tells us that as plant output expands unit costs increases. |
| | A) | True |
| | B) | False |
|
|
|
| 5 | |
The adoption of flexible manufacturing technologies may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output. |
| | A) | True |
| | B) | False |
|
|
|
| 6 | |
A grouping of various types of machinery, a common materials handler, and a centralized cell controller is called a flexible machine cell. |
| | A) | True |
| | B) | False |
|
|
|
| 7 | |
When fixed costs are low, the minimum efficient scale of production is low, and flexible manufacturing technologies are not available, the arguments for concentrating production at one location are compelling. |
| | A) | True |
| | B) | False |
|
|
|
| 8 | |
When the product serves universal needs, decentralization of manufacturing is appropriate. |
| | A) | True |
| | B) | False |
|
|
|
| 9 | |
In practice, location decisions are seldom clear cut. |
| | A) | True |
| | B) | False |
|
|
|
| 10 | |
Managers of international businesses need to view their foreign factories as globally dispersed centres of excellence. |
| | A) | True |
| | B) | False |
|
|
|
| 11 | |
Generally, the firm should contract out to a supplier when substantial investments in specialized assets are required to manufacture a component. |
| | A) | True |
| | B) | False |
|
|
|
| 12 | |
Maintaining flexibility is a great advantage of buying component parts from suppliers |
| | A) | True |
| | B) | False |
|
|
|
| 13 | |
Although vertical integration is often undertaken to lower costs, it may have the opposite effect |
| | A) | True |
| | B) | False |
|
|
|
| 14 | |
Alliances are always good. |
| | A) | True |
| | B) | False |
|
|
|
| 15 | |
The drawback of a JIT system is that it leaves a firm without a buffer stock of inventory. |
| | A) | True |
| | B) | False |
|
|
|
| 16 | |
Web-based information plays a crucial role in modern materials management. |
| | A) | True |
| | B) | False |
|
|
|
| 17 | |
Web-based IT systems are much easier to install than proprietary systems for firms and suppliers |
| | A) | True |
| | B) | False |
|
|
.