Chapter 8

GLOBAL OPERATIONS AND SUPPLY CHAIN MANAGEMENT

Section 1 –Match the words on the left with the right explanations on the right.

1. Outsourcing-E A. system in which the entire organization is managed so that it excels

on all dimensions of product and services that are important to the
customer.
2. Supply chain B. relocating some or all of a business’s activities or processes to a
Management (quản lý chuỗi
cung ứng) G foreign location.
3. Offshoring C. an entire manufacturing system with unbalanced operations that
B giống 1 nhưng khác là
thuê của nước khác emphasizes total system performance.
4. Just-in-time J D. arrangement in which facilities are established to manufacture
 "Đúng sản phẩm - với
đúng số lượng - tại đúng
nơi - vào đúng thời điểm
cần thiết". inputs used in the production of a firm’s final products.
5. Total quality E. hiring others to perform some of noncore activities and decision
management making in a company’s value chain, rather than having the company
A and its employees continue to perform those activities.
6. Logistics F F. the transportation and distribution of goods and services.
7. Wholly owned G. the process of coordinating and integrating the flow of materials,
subsidiaries information, finances, and services within and among companies in
I the value chain from suppliers to the ultimate consumer.
8. Letter of credit H. operation in a manufacturing system whose output sets the limit for
M the entire system’s output.
9. Quality control circle I. a company whose common stock is 100% owned by another
K company, the parent company.
10. Synchronous J. a balanced system in which there is little or no delay time and idle
Manufacturing C in-process and finished goods inventory.
11. Bottleneck H K. small work group that meets periodically to discuss ways to
improve its functional areas and the quality of the product.
12. Mass customization L L. the use of flexible, usually computer-aided, manufacturing systems
to produce and deliver customized products and services for different
customers worldwide.
13. Backward vertical M. a letter from a bank guaranteeing that a buyer's payment to a seller
Integration D will be received on time and for the correct amount.
Section 2 – Fill in each of the gaps with a suitable word or phrase.
1. the issue of design 7 wholly owned subsidiary
2. products 8 low-cost labor
3. adapted 9 higher quality
4. over the wall approach 10 components
5 sequential approach 11 Overseas independent contractor
6 to promote cross-functional participation 12 Overseas joint venture

Section 3 – Find the best answer.

1. The most important reason for sourcing globally is ______________.
A. to obtain foreign products that are not available locally
B. the firm's worldwide operation and attitude
C. to obtain advanced technology from foreign sources
D. to obtain lower prices from foreign sources

2. Which of the following arrangements can provide a firm with foreign products?
A. Wholly owned subsidiary
B. Overseas venture
C. In-bond plant contractor
D. All of the above

3. There is a strong relationship between global sourcing and ______________.

A. ownership of foreign sources
B. a firm's total profit
C. a firm's global success
D. none of the above

4. International freight, insurance and packing can add as much as ______________ to

the quoted price of an imported product.
A. 6 to 8 percent
B. 8 to 10 percent
C. 10 to 12 percent
D. 12 to 14 percent
5. To lower manufacturing costs, the principal goal of Japanese firms is to ______________.
A. eliminate inventories
B. reduce the process time
C. lower labor costs
D. reduce inventory costs
6. ______________ has become a global center for high-technology businesses in recent
years. A. China
B. Indonesia
C. Vietnam
D. India
7. ______________, the most comprehensive of standards applies to industries involved in the
design, development, manufacturing, installation and servicing of products and services.
A. ISO 9001
B. ANSI/AQC90
C. ISO 9000
D. ISO 14000

8. Manufacturing rationalization is the ______________.

A. concentration of production at one central location
B. division of production among a number of producing
units C. allocation of labor costs based on product quality
D. location of production facilities in countries that have the most favorable export laws

9. Generally, it is easier for international corporations to standardize the concepts of total quality
management and synchronous manufacturing in their overseas affiliates than it is to standardize
the actual manufacturing facilities. Environmental forces that contribute to this include
______________.
A. legal forces
B. financial forces
C. political forces
D. all of the above
10. Production methods that are between capital-intensive and labor-intensive methods are called
______________.
A. mid-range technologies
B. appropriate technologies
C. intermediate technologies
D. none of the above
11. "A network of manufacturers and service providers that work together to convert and move
goods from the raw materials stage through to the end user" is the definition of ______________.
A. Supply chain
B. Operations management
C. Service operations
D. Operations function

12. A ______________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
A. production line
B. supply chain
C. marketing channel
D. warehouse

13. A supply chain is a sequence of firms that perform activities required

______________. A. to find products that are similar
B. to facilitate wholesalers inventory selections
C. to create and deliver goods to consumers D.
to support the acquisition of raw materials

14. A supply chain is essentially a sequence of linked ______________.

A. customer and prospects
B. supplier and manufacturer
C. suppliers and customers
D. warehousing and wholesaling units

15. The sequence of a typical manufacturing supply chain is ______________. A.

Storage – supplier – manufacturing - storage – distributor – retailer – customer B.
Supplier – storage – manufacturing – storage – distributor – retailer – customer
C. Supplier – storage – manufacturing – distributor – storage – retailer – customer
D. Supplier – storage – manufacturing – storage – retailer – distributor – customer
16. An organization's supply chain can be viewed from a system's perspective that starts with the
acquisition of resources which are then transformed into products or services. Simply, put the
sequence is represented ______________.
A. Inputs - process – outputs
B. Inputs - outputs – process
C. Sourcing - input - process – outputs
D. Process - inputs – outputs

17. Process of managing upstream and downstream of final goods, flow of raw materials and
information about resellers and final consumers is classified as ______________.
A. marketing logistics network
B. supply chain management
C. delivery network
D. physical distribution network

18. Which of the following is true for supply chain management?

A. The physical material moves in the direction of the end of chain
B. Flow of cash backwards through the chain
C. Exchange of information moves in both the
direction D. All of the above

19. Which of the following are not key attributes of supply chain management?
A. inventory control
B. leveraging technology
C. customer power
D. all are key attributes.

20. Positive long-term relationships between supply chain participants refer to ______________.
A. co-opetitions
B. tailored logistics
C. partnerships
D. supply chain management

21. The supply chain function works with marketing to manage the movement of physical goods
throughout the supply chain. This supply chain activity is ______________.
A. Capacity Planning
B. Purchasing
C. Logistics
D. Forecasting

22. Logistics is the part of a supply chain involved with the forward and reverse flow of
______________.
A. goods
B. services
C. cash
D. all of the above

23. Logistics is an integral part of supply chain management. Which explanation best represents
outbound logistics?
A. A supply chain that emphasizes distribution of a product to passive customers
B. An emphasis on using the supply chain to deliver value to customers who are actively
involved in product and service specification
C. The management of material resources entering an organization from its suppliers and other
partners
D. The management of resources supplied from an organization to its customers and intermediaries

24. The physical characteristics of a product will often dictate what ______________.
A. types of sales can be made
B. types of instructions needed
C. geographic regions will be included
D. kinds of transportation can be used

25. Dramatic cost savings are possible when efficient transportation systems and information
technology can be substituted for ______________ costs.
A. advertising
B. personal selling
C. publicity
D. inventory

26. Zero defects in manufacturing is ______________.

A. is a relevant goal only in electronic assembly
B. is readily achievable in all
areas C. is the goal of TQM
D. is an unobtainable and misleading idea

Section 4 – Decide whether the following sentences are true or false and correct if they are false.
1. The "over-the-wall" approach to product design is sequential in nature, and its initial step is
the product's designs prepared by the designers.
2. The rate at which developing nations shift to more sophisticated processes is often slower than
for the initial emergence of these processes in a developed country.
3. Firms increasingly are using indirect procurement systems to ensure that all the costs
associated with foreign sourcing are fully recognized when they make purchasing decisions.
4. To avoid an increase in price because the home currency has lost value, an American importer
should require exporters to quote in their currency.
5. Many U.S. manufacturers copied parts of the just-in-time system without realizing it is a total
system.
6. Supply chain management is the management of processes used to design, supply, product,
and deliver valuable goods and services to customers.
7. The supply chain concept originated in logistics literature.
8. Supply management plays a major role in improving the “bottom line” by driving sales up
and costs down.
9. Efficiency means doing the right things to create the most value for the company.
10. Effectiveness means doing the right things to create the most value for the company.
11. Just in time (JIT) production was a major breakthrough in manufacturing philosophy
pioneered by the United States.
12. Strategic sourcing is the development and management of supplier relationships to acquire
goods and services in a way that aids in achieving the immediate needs of the business.
13. Exporting is the act of moving some of a firm's internal activities and decision responsibility
to outside providers.
14. Outsourcing allows a firm to achieve an improved focus on its core competencies.
15.