SCM Chapter 6

A company that starts working and bringing resources to create a product or perform a service as soon as it's requested is utilizing a pull system.

True

False

Mass production era of manufacturing was utilizing more of a push system.

True

False

What is the difference between a pull system and a postponement system?

Acquiring capabilities at the front-end of the supply chain (e.g., suppliers) refers to

Backward integration

Upstream integration

Downstream integration

Forward integration

Acquiring capabilities toward the back-end of the supply chain (e.g., distribution, customers) refers to

Downstream integration

Horizontal intergration

Backward intergration

Forward integration

Outsourcing is similar to integration, in the way that the company pays someone to aid in the supply chain.

True

False

From the following, what are the economic reasons to offshore?

From the following, what are the noneconomic reasons to offshore?

Low labor costs

Low import duties and fees

Develop secure sources of supply and reduce risks

Learn foreign markets and cultures

Build relationships with suppliers

If production quantity is above the break-even cost then

Chose the option with the lower fixed cost

Chose the option with the lower variable cost

If production quantity is below the break-even cost then

Choose the option with the lower fixed cost

Chose the option with the lower variable cost

Write-out the formula for Center of Gravity Calculation.

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