IB Business Management - 5.6 Production Planning - Quiz

What is a primary advantage of a global supply chain?

• Reduced risk of supply chain disruptions

• Lower transportation costs

• Access to a wider range of suppliers and resources

• Less complexity in logistics

Which of the following is a challenge of a global supply chain?

• Higher flexibility in sourcing raw materials

• More stable supply due to diversified locations

• Increased risks due to currency fluctuations and trade barriers

• Reduced need for warehousing

A local supply chain is more likely to: a) Reduce lead time and improve responsiveness b) Have higher production costs due to economies of scale c) Experience more logistical complications d) Be less sustainable due to transportation costs

• Reduce lead time and improve responsiveness

• Have higher production costs due to economies of scale

• Experience more logistical complications

• Be less sustainable due to transportation costs

What is a common reason businesses outsource part of their supply chain to other countries?

• To increase the number of employees

• To comply with local government policies

• To take advantage of lower labor and production costs

• To reduce foreign exchange risks

A major drawback of relying on a global supply chain is:

• Limited access to new markets

• Higher exposure to political and economic risks

• Higher flexibility in supplier selection

• Lower dependency on international logistics

Which best describes Just-in-Time (JIT) inventory management?

• Keeping extra stock on hand to avoid shortages

• Producing goods only when they are needed, minimizing inventory

• Buying stock in bulk to save costs

• Holding a safety stock in case of demand fluctuations

What is a key benefit of JIT?

• Lower storage costs and reduced waste

• Increased supplier dependency

• Higher buffer stock levels

• Greater lead times

A disadvantage of JIT inventory management is:

• Higher warehousing costs

• Risk of stock shortages if supply chain disruptions occur

• Higher need for large storage facilities

• Increased capital tied up in stock

Just-in-Case (JIC) is most useful in which situation?

• When businesses face unstable demand and supply chain risks

• When companies want to minimize stock storage costs

• When lead times are extremely short

• When suppliers are always reliable

Which of the following is an example of a JIT system?

• A supermarket restocking shelves daily to maintain high stock levels

• A car manufacturer ordering parts only when an order is placed

• A clothing retailer buying stock for seasonal sales six months in advance

• A company keeping emergency inventory to avoid stockouts