While selecting a factory location in a foreign country consideration should be given to C ulture Legal system Monetary policies Transportation infrastructure All answers are correct ID: 619013
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Slide1
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.
While
selecting a factory location in a foreign country, consideration should be given
to
C
ulture
Legal
system
Monetary
policies
Transportation
infrastructure
All answers are correctSlide2
2. Which of the following represent reasons for global operations?
T
o gain improvements in the supply chain
T
o improve operations
T
o expand a product's life cycle
To attract and retain global talentAll 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:
Cultural transferability
Network development
Host government policy
Labor norms
All answers are correctSlide3
4. Which of the following is a risk of global operations management?
I
ntellectual rights issues
Contract compliance issues
Q
uality issues
S
ustainability issuesAll answers are correct
5. Which of the following is not an exclusive characteristic of global supply chains in comparison to domestic operations:
Language and cultural differences
Currency fluctuations
Increase transportation costs and lead times
Increase need for trust and cooperation among supply chains partners
Technological advances in
telecommunicationsSlide4
6
. Which of the following is a factor that drives the globalization of operations and supply chain management
?
Availability
of low-cost, high-quality labors in foreign countries
Growth
in foreign-market demand
Advances in communication and transportation technologyPenetration
of foreign companies into local markets
All answers are correct
The
network model of the physical goods supply chain contains all but one of the following elements
.
C
ompetitor
D
istributor
R
etailer
C
ustomer
S
upplier
Slide5
8
. Which of the following represents reasons for globalizing operations
?
Gain improvements in supply chain
Improve operations
Expand product life cycle
Attract and retain global talent
All answers are correct9. Multinational organizations can shop from country to country and cut costs through
L
ower
wage scales
L
ower
indirect labor costs
L
ess
stringent regulations
L
ower
taxes and tariffs
All answers are correct
Slide6
10.
Offshoring is a
global operations strategy
that involves moving processes to another country. Which of the following statement related with offshoring is true?
Firms
can reduce labor costs by outsourcing processes to low labor-cost countries
Firms
can reduce the logistical costs of delivering products to international customers by offshoringFirms can avoid tariffs by assembling the products in other countries rather than exporting them
Offshoring
may not be the best choice, even if local labor wages far exceed those of other countries
All answers are correct
Slide7
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)
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 = 62Slide8
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. W
here
should the shirts be
produced and at what costs
.
.
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