FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Value Chains

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Essay

Review LaterAdd Note

Review Later

Discuss six issues that make global value chains more difficult to manage than small domestic value chains.

Correct Answer

verified

Complex global value chains ar...

View Answer

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

_____ is defined as the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.

A) Proportionality
B) Competitiveness
C) Value
D) Equity

E) C) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

A competitively dominant customer experience is often called a _____.

_____ refers to acquiring capabilities toward suppliers.

The operational structure of a value chain deals with the _____.

In the context of the perspectives of a value chain, training and transportation delivery services for customers would be considered as _____.

Explain the notion of value chain integration.

_____ is the process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to quality.

When break-even analysis is applied to an outsourcing decision, the break-even quantity is _____.

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

A manufacturing company needs to know whether to make in-house or buy a roller gear assembly for its production of a new fax machine. The company expects to produce 9,000 units per year. The following estimates have been made: $\begin{array}{|l|c|c|}\hline & \text { Make } & \text { Buy } \\\hline \text { Fixed cost per year } & \$ 8,000 & \$ 0 \\\hline \text { Variable cost per part } & \$ 5.45 & \$ 6.93 \\\hline\end{array}$ -The annual cost to buy the roller gear assembly is _____.

A large hotel and casino in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to make the pizza themselves or buy it frozen and simply heat it to customer order. There are two major sources of commercial-grade frozen pizza: Ma Ma's Products and the Chun-Yee Corporation. If they make the pizza themselves, a substantial amount of preparation equipment will be required, along with skilled personnel. Frozen pizza needs either a conventional oven (Ma Ma's) or a microwave (Chun-Yee). Financial data is as shown below (variable costs are estimated based on an average pizza purchase): $\begin{array}{|l|c|c|}\hline \text { Source } & \text { Fixed Cost/year } & \text { Variable Cost } \\\hline \text { Make in-house } & \$ 7,870 & \$ 3.20 \\\hline \text { Ma Ma's } & \$ 860 & \$ 5.60 \\\hline \text { Chun-Yee } & \$ 2,460 & \$ 4.50 \\\hline\end{array}$ a.At what volume is either Ma Ma's or Chun-Yee acceptable? b.At what volume is the company indifferent to either Chun-Yee or make in-house?

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 volume they are indifferent regarding the decision to make or buy is _____ units.

Outsourcing is _____.

A company has two alternatives for meeting a customer requirement for 5,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 and variable cost is $20 per unit. Alternative two is to outsource for a total cost of $40 per unit. Determine the break-even quantity and determine if they should make the item in-house or outsource it.

_____ refers to the process of acquiring and consolidating elements of a value chain to achieve more control.

The success of the entire value chain depends on how it is designed and managed.

Explain a value proposition. Relate this to a customer benefits package of goods and services.

The focus of preproduction services is on gaining a customer while that of postproduction services is on keeping the customer.

In break-even analysis, whenever the anticipated volume is greater than the break-even quantity, the firm should not outsource.