State the factors that managers should take into account while deciding whether or not to offshore.
What will be an ideal response?
Student answers will vary but should show an understanding of the following factors: What competitive advantage do the products offer? If the product is widely available and standardized, such as a calculator, and the only competitive advantage is price, the lowest possible production cost is essential and offshoring is beneficial. Is the business in its early stages? If so, offshoring may well be inappropriate because managers need to stay close to the business and its customers to solve problems and make sure everything is going according to plan. Can production savings be achieved locally? Automation can often achieve significant labor cost savings and eliminate the advantage of moving production abroad. Can the entire supply chain be improved? Enormous productivity savings are possible when managers develop an efficient supply chain, from suppliers to manufacturing to customers. These improvements permit both lower cost and faster customer service.
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Explain the importance of promoting honest and open communication between suppliers and customers
What will be an ideal response?
Which of the following is NOT true of order fulfillment process?
a. It varies in complexity. b. It may be simple when orders are filled from inventory of made-to-stock items. c. It may be complicated for items made to order. d. It is heavily regulated by the government.
Which of the following is NOT an internal force of change?
A. technology B. strategy C. workforce D. employee attitudes
According to the liquidity premium theory of the term structure, when the yield curve has its usual slope, the market expects
A) short-term interest rates to rise sharply. B) short-term interest rates to drop sharply. C) short-term interest rates to stay near their current levels. D) none of the above.