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1 | |
The management philosophy that takes as its central focus the need to improve the quality of a company's products and services is known as |
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| | A) | supply chain management |
| | B) | total quality management |
| | C) | logistics |
| | D) | quality-cost relationship theory |
| | E) | ISO 9000 |
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2 | |
_________ is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company. |
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| | A) | Six Sigma |
| | B) | ISO 9000 |
| | C) | TQM |
| | D) | The Demming philosophy |
| | E) | GAM |
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3 | |
___________ simplifies the relationship between multinational firms and suppliers of services by establishing a single relationship with a global span and one contract. |
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| | A) | TQM |
| | B) | ISO 9000 |
| | C) | Six Sigma |
| | D) | GAM |
| | E) | The Demming philosophy |
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4 | |
Which of the following is not true of flexible manufacturing technology? |
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| | A) | it reduces set-up times for complex equipment |
| | B) | it is often called lean production |
| | C) | it improves quality control at all stages of the manufacturing process |
| | D) | it increases the utilization of individual machines through better scheduling |
| | E) | it is known as mass customization |
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5 | |
Flexible manufacturing technology in which a grouping of various machine types, a common materials handler, and a centralized cell controller produce a family of products is |
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| | A) | lean production |
| | B) | mass customization |
| | C) | TQM |
| | D) | GAM |
| | E) | flexible machine cells |
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6 | |
Examples of products that serve universal needs include all of the following but |
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| | A) | steel |
| | B) | books |
| | C) | bulk chemicals |
| | D) | personal computers |
| | E) | video game consoles |
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7 | |
Concentration of manufacturing makes most sense when |
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| | A) | the product's value-to-weight ratio is low |
| | B) | important exchange rates are expected to be relatively volatile |
| | C) | trade barriers are high |
| | D) | differences between countries in factor costs, political economy, and culture have little impact on the cost of manufacturing in various countries |
| | E) | externalities arising from the concentration of like enterprises favor certain locations |
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8 | |
Manufacturing should be decentralized when |
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| | A) | location externalities are important |
| | B) | exchange rates are expected to be stable |
| | C) | trade barriers are low |
| | D) | the product's value-to-weight ratio is high |
| | E) | the product serves universal needs |
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9 | |
Logistics systems designed to deliver parts to a production process as they are needed, not before is known as |
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| | A) | CAD |
| | B) | CAM |
| | C) | TQM |
| | D) | JIT |
| | E) | supply chain management |
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10 | |
Web-based information systems allow firms to do all of the following except |
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| | A) | establish a competitive pricing system |
| | B) | track component parts |
| | C) | optimize production scheduling |
| | D) | allow communication between suppliers, shippers, and purchasing firms |
| | E) | reduce paperwork |
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11 | |
The activity that controls the transmission of physical materials through the value chain is logistics. |
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| | A) | True |
| | B) | False |
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12 | |
A firm with efficient supply chain management reduces the amount of inventory in the system and decreases inventory turnover. |
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| | A) | True |
| | B) | False |
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13 | |
The certification process that requires certain quality standards must be met is known as Six Sigma. |
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| | A) | True |
| | B) | False |
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14 | |
In order to achieve all major plant-level scale economies, a plant must operate at minimum efficient scale. |
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| | A) | True |
| | B) | False |
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15 | |
The two product features that affect location decision are the product's value-to-weight ration and whether the product serves universal needs. |
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| | A) | True |
| | B) | False |
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16 | |
India is an attractive outsourcing location for U.S. firms because English is widely spoken, the pay is much lower than in the U.S., and because the nation jas a well educated workforce. |
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| | A) | True |
| | B) | False |
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17 | |
If the manufacturing of a product requires substantial investments in specialized assets, internal production is preferred. |
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| | A) | True |
| | B) | False |
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18 | |
Sourcing products from independent suppliers allows a firm to maintain its flexibility to switch between suppliers as circumstances dictate. |
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| | A) | True |
| | B) | False |
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19 | |
Strategic alliances enable firms to reap the benefits of vertical integration, but still maintain the flexibility to switch between different suppliers. |
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| | A) | True |
| | B) | False |
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20 | |
JIT systems can help a firm improve the quality of a product. |
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| | A) | True |
| | B) | False |