Download productions/operations management

The supply chain for an organization is the network of
enterprises that the organization uses to deliver products to the
consumer. It includes the organization itself, its suppliers and
suppliers of its suppliers, any down steam operations that may
process the products further, and distributors, wholesalers,
retailers, and transportation systems. Global supply chain or
global operations management is when the chain expands over
more than one country.
1. While selecting a factory location in a foreign country,
consideration should be given to
A.
B.
C.
D.
E.
Culture
Legal system
Monetary policies
Transportation infrastructure
All answers are correct
2. Which of the following represent reasons for global operations?
A.
B.
C.
D.
E.
To gain improvements in the supply chain
To improve operations
To expand a product's life cycle
To attract and retain global talent
All answers are correct
3. McDonald’s includes beer in its menu for German franchises.
This is an example of which of the following considerations for
global operations:
A.
B.
C.
D.
E.
Cultural transferability
Network development
Host government policy
Labor norms
All answers are correct
4. Which of the following is a risk of global operations
management?
A.
B.
C.
D.
E.
Intellectual rights issues
Contract compliance issues
Quality issues
Sustainability issues
All answers are correct
5. Which of the following is not an exclusive characteristic of
global supply chains in comparison to domestic operations:
A.
B.
C.
D.
Language and cultural differences
Currency fluctuations
Increase transportation costs and lead times
Increase need for trust and cooperation among supply chains
partners
E. Technological advances in telecommunications
6. Which of the following is a factor that drives the globalization
of operations and supply chain management?
A.
B.
C.
D.
E.
Availability of low-cost, high-quality labors in foreign countries
Growth in foreign-market demand
Advances in communication and transportation technology
Penetration of foreign companies into local markets
All answers are correct
7. The network model of the physical goods supply chain
contains all but one of the following elements.
A.
B.
C.
D.
E.
Competitor
Distributor
Retailer
Customer
Supplier
8. Which of the following represents reasons for globalizing
operations?
A.
B.
C.
D.
E.
Gain improvements in supply chain
Improve operations
Expand product life cycle
Attract and retain global talent
All answers are correct
9. Multinational organizations can shop from country to country and cut
costs through
A.
B.
C.
D.
E.
Lower wage scales
Lower indirect labor costs
Less stringent regulations
Lower taxes and tariffs
All answers are correct
10. Offshoring is a global operations strategy that involves
moving processes to another country. Which of the following
statement related with offshoring is true?
A. Firms can reduce labor costs by outsourcing processes to low
labor-cost countries
B. Firms can reduce the logistical costs of delivering products to
international customers by offshoring
C. Firms can avoid tariffs by assembling the products in other
countries rather than exporting them
D. Offshoring may not be the best choice, even if local labor wages
far exceed those of other countries
E. All answers are correct
11. A company wants to build a major warehouse in Europe. Four
locations are being considered. The following table shows the important
factors to bring into account along with the importance level (weight) of
each factor. The attractiveness of each location relative to each factor is
indicated on a 0-100 point scale. Find the best location.
Factor (weight)
A.
B.
C.
D.
E.
Germany
France
Belgium
Netherlands
Transportation costs (0.3)
70
90
50
50
Operating costs (0.3)
60
70
60
70
Construction costs (0.3)
70
30
70
70
Business environments (0.1)
80
50
60
50
Germany
France
Belgium
Netherland
Both Belgium and France
G: 0.3(70)+0.3(60)+0.3(70)+0.1(80) =
21+18+21+8 = 68
F: : 0.3(90)+0.3(70)+0.3(30)+0.1(50) =
27+21+9+5 = 62
B: : 0.3(50)+0.3(60)+0.3(70)+0.1(60) =
15+18+21+6 =60
N: : 0.3(50)+0.3(70)+0.3(70)+0.1(50) =
15+21+21+5 = 62
12. A manufacturer of men’s shirts can produce shirts in its
Houston plant for $6 per shirt. Chicago is a major market for
100,000 shirts per year. Transportation and storage charges from
Houston and Chicago amount to $5 per 100 pounds. Each
packaged shirt weighs 1 pound. As an alternative, the company
can have the shirts produced in China for $4 per shirt. The raw
materials would be shipped from Houston to China at a cost of
$10 per 100 pounds. When the shirts are completed, they are to be
shipped directly to Chicago at a transportation and storage cost of
$16 per 100 pounds. An import duty of $0.5 per shirt is assessed.
Where should the shirts be produced and at what costs..
A.
B.
C.
D.
E.
Houston; $805,000
China; $458,000
Houston; $605,000
China; $476,000
None of the above
Houston: 6+0.05 = 6.05 (100,000)
= 605000
China: 4+0.1+0.16+0.5 = 4.76(100000)
= 476000