Global Production Tier B

Name the 4 Model Types used in Data Analytics & Decision Support Systems

1. Descriptive model: Explains the structure of a system.

2. Analytical model: Explains interactions between system components.

3. Predictive model: Predicts how the system changes under conditions (Simulation).

4. Prescriptive model: Advises how the system should change to meet a goal (Optimization).

Name the 3 forms of corporate growth in Global Production.

1. In-house development: Opening sales branches or subsidiaries.

2. Corporate cooperation: Licensing, franchising, strategic alliances, joint ventures.

3. Company acquisition: Mergers and acquisitions (M&A).

Name the 4 motives for Reshoring / Backshoring.

1. Quality issues

2. High logistics costs

3. Lack of flexibility

4. Capacity utilization need

Name the 5 Types of Collocation in R&D and Site Development. (being located together)

1. No collocation: R&D is separate from production.

2. Minimal collocation: Basic R&D near production.

3. Process development: R&D improves production processes.

4. Application development: R&D develops product applications.

5. Platform development/research: Advanced R&D and research at the site.

List the 3 Part Sourcing Strategies by organizational level.

1. Unit Sourcing (Single components separately)

2. Modular Sourcing (Pre-assembled modules containing several components)

3. System Sourcing (Complex already functional systems)

Name the 6 steps of the Supplier Management Process.

1. Part selection – Decide what to buy.

2. Supplier identification – Find potential suppliers.

3. Supplier evaluation & selection – Choose the best supplier.

4. Supplier development – Improve supplier performance.

5. Supplier integration – Work closely with suppliers.

6. Supplier controlling – Monitor supplier performance.

Name 3 Methods used for Supplier Controlling.

1. Continuous evaluation

2. Regular audits

3. Key Performance Indicators (KPIs)

List the 4 Organizational Center Types used in Global Production Networks.

1. Strategic Business Unit (SBU) – Independent unit with its own strategy and market.

2. Profit Center – Responsible for revenues and profits.

3. Cost Center – Responsible for controlling costs.

4. Service Center – Provides services to other units.

Name the 3 approaches to setting Internal Transfer Prices.

1. Cost-based (Full cost, Cost-plus, Marginal cost)

2. Market-based (Negotiated, Market price, Discounted market price)

3. Mixed / Dual-pricing (Full cost + negotiated margin)

Name the 3 primary functions of Internal Transfer Prices.

1. Valuation function

2. Profit-shifting function (Tax optimization)

3. Steering / Allocation function

Name the 3 R-Strategies used in Circular Production Networks.

1. Narrow the loop: Refuse, Rethink, Reduce.

2. Slow the loop: Reuse, Repair, Refurbish, Remanufacture.

3. Close the loop: Repurpose, Recycle.

List 4 Circular Business Models in Global Production.

1. Sharing Platforms (e.g., vehicle sharing)

2. Product-as-a-Service / Renting (e.g., equipment leasing)

3. Extension of Product Life (e.g., official refurbishing)

4. Resource Recovery & Recycling

Name the 4 core requirements for a Digital Twin of a Global Production Network.

1. Organizational integration

2. Decision support

3. Model architecture

4. Data acquisition

Name the 3 Drivers of Change in Digitalization.

1. Computerization

2. Connectivity

3. Disruptive Technologies

What is a Descriptive Model vs. a Predictive Model?

• Descriptive Model: Explains the structure and relationships within a system.

• Predictive Model: Use simulations to project how system behavior changes under specific future conditions or scenarios.

Define Resilience in the context of Global Production Networks.

The ability to adapt to unexpected changes in the requirements in a production network.

Name the challenges of digitalization in global production

• Cyber security

• Complexity

• Fear of new business models

• Information disparity

Name the Challenges of Circular Production Networks

• Complex material flows

• High costs

• Technological complexity

• Cybersecurity

• Collaboration along the supply chain

Name the 3 main tasks of logistics (3R of Logistics); name the 2 types of logistics costs with examples

• Main tasks of logistics: Right product, Right place, Right time

• Types of logistics costs:
  1. Direct: physical transport (transport, distribution)
  2. Indirect: indirect logistic effects (inventory, lost customers)

Name 2 types of supplier selection strategies by distance (Regional relevance) with one example each

• Global sourcing: Low transportation costs and high interchangeability (Screws)

• Local sourcing: High transportation costs (Windmill wing)

A company enters a market where it faces intense competition, and its unit competence is low. It needs to establish a stronger foothold. What typology is this site, and what action is recommended?

Typology: Black Hole.

Recommendation: Build up operational competence to convert the site into a Strategic Leader.

A medical device manufacturer operates a highly centralized R&D unit in Germany but deploys decentralized production support teams across local overseas plants. Which collocation type is this?

Minimal collocation (Interface: Decentralized production support only).

A plant produces specialized automotive components tailored specifically for local regulatory requirements in each target country but uses standardized core manufacturing processes. Which collocation model fits best?

Collocation of application development.

A company creates a central IT and administrative division that handles operations for all global business units without charging market-based prices. What center type is this, and why?

Service Center, because it provides internal support across the network focusing on corporate synergies rather than generating direct revenue.

Plant A (in a low-tax country) sells intermediate components to Plant B (in a high-tax country). Management wants to minimize global tax burden legally. Which transfer pricing strategy function is applied?

Profit-shifting function of transfer pricing.

A company wants to decide internal transfer prices that eliminate internal monopolies while giving clear cost benchmarks. Which transfer pricing method fits best?

Market-based transfer pricing.

An electronics firm rents out high-performance servers to clients on a usage basis rather than selling the hardware outright. What circular business model is this?

Production-as-a-Service (PaaS) / Product-as-a-Service.

Explain how Capital Costs and Coordination/Monitoring Costs influence location decisions.

• Capital Costs: Financing costs vary by region, affecting investment attractiveness.

• Coordination/Monitoring Costs: Distance, cultural differences, and skill gaps increase coordination costs and may outweigh low-wage advantages.

Contrast the Market-Based View (MBV) and Resource-Based View (RBV) in strategic management, including the primary weakness of each.

Market-Based View: Strategy focuses on external market conditions (competition, customers).

→ Weakness: Underestimates internal capabilities.

Resource-Based View: Strategy focuses on internal resources and capabilities.

→ Weakness: Underestimates external market changes.

Which corporate growth form offers the highest market entry speed when expanding globally?

Company Acquisition (M&A)

How do Franchising/Licensing, Joint Ventures, and Wholly-Owned Subsidiaries differ regarding capital risk and management deployment?

1. Franchising/Licensing: Low capital & risk, low management involvement.

2. Joint Venture: Shared capital & risk, shared management.

3. Wholly-Owned Subsidiary: High capital & risk, high management involvement/control.