Global Production and Supply Chain Management

These flashcards cover key concepts in global production and supply chain management, including decision-making factors, strategic roles, quality control, and logistics functions.

Why are global production and supply chain management decisions important for companies?

They are central to ensuring efficient operations, cost control, and meeting customer demands.

What factors influence the location of production activities?

Country differences, production technology, and production factors.

What are the strategic roles of foreign subsidiaries in production?

They accumulate knowledge which can enhance their role over time.

What factors influence a firm's decision to source supplies?

Whether to source within the company or from foreign suppliers.

What is supply chain management?

The integration and coordination of logistics, purchasing, operations, and market channel activities from raw materials to the end customer.

What is Six Sigma?

A statistically based philosophy aimed at reducing defects, boosting productivity, and cutting costs throughout a company.

What is ISO 9000?

A certification process that requires certain quality standards to be met, focusing on improving product and process quality.

What are the hidden costs associated with foreign production locations?

High employee turnover, shoddy workmanship, poor product quality, and low productivity.

What are make-or-buy decisions?

Decisions made regarding whether to produce internally or purchase externally, influenced by strategic and operational considerations.

What is Just-in-Time inventory?

An inventory logistics system designed to deliver parts to production as they are needed, minimizing holding costs.

What role does information technology play in global supply chains?

It facilitates communication, planning, and management of logistics and supply chain activities.

What are the core activities of global logistics?

Management of global distribution, inventory, packaging, transportation, and reverse logistics.

What is the goal of reverse logistics?

To optimize the flow of materials and information for recapturing value or proper disposal.

What are the levels of global purchasing activities a company can engage in?

Levels range from domestic purchasing only to integrated global purchasing across locations and functional groups.

What is a global distribution center?

A facility that positions and allows customization of products for delivery worldwide.