Question 1

An organization that outsources still retains ownership of an outsourced process or function.

Accepted Answer

A) True 
 B)False

Question 2

_____ refers to acquiring capabilities in the value (supply) chain toward distributions or even customers.

Accepted Answer

A)  Backward integration 
B)  Outsourcing 
C)  Offshoring 
D)  Forward integration 
A)  Backward integration 
B)  Outsourcing 
C)  Offshoring 
D)  Forward integration

Question 3

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Accepted Answer

A) True 
 B)False

Question 4

Offshoring is the same as outsourcing in terms of transferring ownership and control.

Accepted Answer

A) True 
 B)False

Question 5

A company has two alternatives for meeting a customer requirement for 6,000 units of a specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the break-even point and determine if they should make the item in-house or outsource it.

Accepted Answer

A)  break-even point = 7,000 units; outsource it 
B)  break-even point = 7,000 units; make it in-house 
C)  break-even point = 11,667 units; outsource it 
D)  break-even point = 11,667 units; make it in-house 
A)  break-even point = 7,000 units; outsource it 
B)  break-even point = 7,000 units; make it in-house 
C)  break-even point = 11,667 units; outsource it 
D)  break-even point = 11,667 units; make it in-house

Question 6

The decision to offshore or outsource involves a variety of economic and noneconomic issues.

Accepted Answer

A) True 
 B)False

Question 7

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the physical movement of goods and materials.

Accepted Answer

A) True 
 B)False

Question 8

Postproduction services might include customer financing, customer benefit package design, and promotion/advertising.

Accepted Answer

A) True 
 B)False

Question 9

Differentiate a supply chain from a value chain.

Accepted Answer

A supply chain is the portion of the val

Question 10

What are the major decisions organizations must address in designing and configuring their value chains?

Accepted Answer

Organizations face numerous decisions in

Question 11

The first, second, and third waves of outsourcing experienced by the United States involve _____ respectively.

Accepted Answer

A)  goods-producing jobs, simple service work, and skilled knowledge work 
B)  simple service work, goods-producing jobs, and skilled knowledge work 
C)  simple service work, skilled knowledge work, and goods-producing jobs 
D)  skilled knowledge work, simple service work, and goods-producing jobs 
A)  goods-producing jobs, simple service work, and skilled knowledge work 
B)  simple service work, goods-producing jobs, and skilled knowledge work 
C)  simple service work, skilled knowledge work, and goods-producing jobs 
D)  skilled knowledge work, simple service work, and goods-producing jobs

Question 12

The focus on value has forced many traditional goods-producing companies to reduce services to their customer benefits packages.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a value chain process?

Accepted Answer

A)  Core processes 
B)  Support processes 
C)  General management processes 
D)  Open-ended processes 
A)  Core processes 
B)  Support processes 
C)  General management processes 
D)  Open-ended processes

Question 14

Vertical integration is a modern method of outsourcing.

Accepted Answer

A) True 
 B)False

Question 15

Preproduction services might include warranty and claim services.

Accepted Answer

A) True 
 B)False

Question 16

Contrast outsourcing with vertical integration. Also, contrast backward integration with forward integration.

Accepted Answer

Outsourcing is the process of having sup

Question 17

_____ is the process of having suppliers provide goods and services that were previously provided internally.

Accepted Answer

A)  Outsourcing 
B)  Horizontal integration 
C)  Reshoring 
D)  Vertical integration 
A)  Outsourcing 
B)  Horizontal integration 
C)  Reshoring 
D)  Vertical integration

Question 18

A value chain begins with the goods and services that are provided to customers.

Accepted Answer

A) True 
 B)False

Question 19

A U.S. motorcycle manufacturer has the option of either making the tires in their newly designed motorcycle, or subcontracting it out to a manufacturer from Singapore. Costs for the two options are:
 $\begin{array}{|l|c|c|}
\hline \text { Source } & \text { Fixed Cost } & \text { Variable Cost } \
\hline \text { Make in-house } & \$ 15,000 & \$ 21.50 \
\hline \text { Buy from Singapore } & \$ 0 & \$ 29.00 \
\hline
\end{array}$ 
a.Which option would be preferred at an annual volume of 3,000 tires?
b.Which option would be preferred at an annual volume of 5,000 tires?
c.For what range of production volume would it be better to make the tires in-house?

Accepted Answer

a.Make:
TC = $15,000 + $21.50(3000) = $7

Question 20

A U.S. motorcycle manufacturer has the option of either making the gas tank in their newly designed motorcycle, or subcontracting it to a manufacturer from Sinagpore. The manufacturer expects to produce 1,000 units per year. Costs for the two options are:
 $\begin{array}{|l|c|c|}
\hline \text { Source } & \text { Fixed Cost } & \text { Variable Cost } \
\hline \text { Make in-house } & \$ 15,000 & \$ 21.50 \
\hline \text { Buy from Singapore } & \$ 0 & \$ 29.00 \
\hline
\end{array}$
-The annual cost to make the gas tank in-house is _____.

Accepted Answer

A)  less than or equal to $30,000 
B)  more than $30,000 but less than or equal to $40,000 
C)  more than $40,000 but less than or equal to $50,000 
D)  more than $50,000 but less than or equal to $60,000 
A)  less than or equal to $30,000 
B)  more than $30,000 but less than or equal to $40,000 
C)  more than $40,000 but less than or equal to $50,000 
D)  more than $50,000 but less than or equal to $60,000

An organization that outsources still retains ownership of an outsourced process or function.

_____ refers to acquiring capabilities in the value (supply) chain toward distributions or even customers.

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Offshoring is the same as outsourcing in terms of transferring ownership and control.

The decision to offshore or outsource involves a variety of economic and noneconomic issues.

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the physical movement of goods and materials.

Postproduction services might include customer financing, customer benefit package design, and promotion/advertising.

Differentiate a supply chain from a value chain.

What are the major decisions organizations must address in designing and configuring their value chains?

The first, second, and third waves of outsourcing experienced by the United States involve _____ respectively.

The focus on value has forced many traditional goods-producing companies to reduce services to their customer benefits packages.

Which of the following is NOT a value chain process?

Vertical integration is a modern method of outsourcing.

Preproduction services might include warranty and claim services.

Contrast outsourcing with vertical integration. Also, contrast backward integration with forward integration.

_____ is the process of having suppliers provide goods and services that were previously provided internally.

A value chain begins with the goods and services that are provided to customers.

Goods, Services, and Operations Management

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters

Exam 2: Value Chains

An organization that outsources still retains ownership of an outsourced process or function.

_____ refers to acquiring capabilities in the value (supply) chain toward distributions or even customers.

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Offshoring is the same as outsourcing in terms of transferring ownership and control.

The decision to offshore or outsource involves a variety of economic and noneconomic issues.

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the physical movement of goods and materials.

Postproduction services might include customer financing, customer benefit package design, and promotion/advertising.

Differentiate a supply chain from a value chain.

What are the major decisions organizations must address in designing and configuring their value chains?

The first, second, and third waves of outsourcing experienced by the United States involve _____ respectively.

The focus on value has forced many traditional goods-producing companies to reduce services to their customer benefits packages.

Which of the following is NOT a value chain process?

Vertical integration is a modern method of outsourcing.

Preproduction services might include warranty and claim services.

Contrast outsourcing with vertical integration. Also, contrast backward integration with forward integration.

_____ is the process of having suppliers provide goods and services that were previously provided internally.

A value chain begins with the goods and services that are provided to customers.

Goods, Services, and Operations Management

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters