Chapter 14

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Chapter 14 Global Production, Outsourcing, and Logistics True / False Questions 1. (p. 463) Outsourcing the "production" of certain service activities to developing nations, where labor costs are lower, has become a trend in recent years. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-1 Topic: Strategy, Production, and Logistics 2. (p. 463) Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-1 Topic: Strategy, Production, and Logistics 3. (p. 463) The term production is used to…show more content…
FALSE AACSB: Comprehension BT: Knowledge Difficulty: Medium Learning Objective: 14-2 Topic: Where to Produce 17. (p. 469) Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-2 Topic: Where to Produce 18. (p. 470) Improved capacity utilization and reductions in waste and in work in progress are major efficiency benefits of flexible machine cells. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-2 Topic: Where to Produce 19. (p. 470) Flexible manufacturing has made Ford the most efficient auto company in the world. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-2 Topic: Where to Produce 20. (p. 470) A flexible machine cell is a grouping of various types of machinery, a common materials handler, and a centralized cell controller. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 14-2 Topic: Where to Produce 21. (p. 469) Research suggests that the adoption of flexible manufacturing technologies may actually increase efficiency and lower unit costs, relative to what can be achieved by the mass production of a standardized output. TRUE AACSB: Analytic BT:

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