The most important challenge to consider when sourcing globally is:
A. the identification of sources capable of producing the materials.
B. the availability of low-cost labor and energy.
C. complying with specific import/export issues.
D. balancing the difference between piece price and total cost.
Managing supply chain risks includes which of the following activities?
A. Developing alternatives to key suppliers
B. Setting aside funds for disruption-recovery efforts
C. Charging each supply chain partner a portion of risk cost
D. Creating extra inventory to cover disruptions in the supply chain
A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?
A. Source from domestic suppliers.
B. Conduct a risk assessment.
C. Carry additional safety stock.
D. Spread logistics across multiple carriers.
Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:
A. implement statistical process control for the component.
B. bring manufacturing of the critical component in-house.
C. develop an alternate source of supply.
D. certify the supplier of the component.
Which of the following strategies can be used to help manage global risks?
A. Direct shipment
B. Cross-docking
C. Mass customization
D. Flexibility
A company most likely would consider moving a portion of its manufacturing to a second location to:
A. improve competitive advantage through cost control.
B. avoid manufacturing downtime due to material shortages.
C. maximize security for customer shipments.
D. minimize the impact of natural disasters.
The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:
A. enhance the competitive advantage.
B. gain access to proven management tools.
C. reduce the threat of organized labor.
D. reduce the cost of operating in multiple countries.
The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:
A. accounting practices.
B. biodiversity protection.
C. conflicts of interest.
D. waste reduction.
Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?
A. Preventing a group of employees from forming a collective bargaining (union) group
B. Paying different wages in different parts of the world for a given job classification
C. Requiring an individual to pay a fee for consideration in hiring or promotion decisions
D. Withholding certain employment opportunities from specific groups of people
A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:
A. environmentally sensitive engineering.
B. gray box design.
C. green manufacturing.
D. sustainability in operations.
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