Exam (elaborations)
CH.13 GLOBAL OPERATIONS & SUPPLY CHAIN MANAGEMENT TEST 1 QUESTIONS AND ANSWERS
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CH.13 GLOBAL OPERATIONS & SUPPLY CHAIN MANAGEMENT TEST 1 QUESTIONS AND ANSWERS
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1-46 of 46Design of new products
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Research and Development
When a firm has been making goods and services in-house, and then decides to buy
these goods and services from suppliers
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Outsourcing
1. when fixed cast are high one production facility will be favored
2. minimum efficient scale and it comparison to demand, as volume increases, unit
costs decreases due to economies of scale
3. value-to-weight ratio, goods with high value-to-weight ratios are expensive but do
not weigh very much
4. comparative advantage according to factor endowments
5. infrastructure that the country offers ie seaports, airports, roads, electricity, and
water access
6. trade policies
7. financial considerations
8. political considerations
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Considerations for Location of production facilities for components and
raw materials
When the firm doing the outsourcing and the supplier that will provide the
outsourced goods and services are located in the same country
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Domestic Outsourcing
Movement of materials in the production system
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