International Operation Quiz

Questions and Answers

What does the term 'throughput times' refer to in the context of logistics?

The duration goods remain in stock before being sold

The time parts and unfinished goods require from receipt to their use in production (correct)

The total time required for goods to be transported across borders

The time taken to process invoices related to goods shipment

Which objective is NOT a primary goal of global logistics?

Ensure the flow of materials across borders to avoid idle times

Guarantee the flow of information for traceability of goods

Maintain a high level of stock to mitigate supply disruptions (correct)

Minimize throughput times in production and distribution logistics

What is the main challenge associated with achieving global logistics goals?

Increasing the economic efficiency of transportation

Increased availability of automated transport systems

Seasonal availability of goods and volatility in replenishment times (correct)

Progressive standardization of international shipping regulations

What term is used to describe the forced changes of the means of transport in logistics?

Media disruption Signup and view all the answers

The term 'local content requirements' refers to what in the context of international logistics?

The regulations for the provision of certain services in a country Signup and view all the answers

What is the primary difference between offshoring and outsourcing?

Offshoring relocates processes to a different country, while outsourcing transfers parts of the value chain regardless of location. Signup and view all the answers

Which of the following is NOT a reason for implementing offshoring?

Higher innovation levels Signup and view all the answers

What triggers a company to consider insourcing or backsourcing?

Dependence on outsourced parties becoming too high Signup and view all the answers

Which of the following is a common sub-function that companies outsource?

Customer relationship management and marketing Signup and view all the answers

Which factor is considered a reason for outsourcing?

Overregulation of domestic markets Signup and view all the answers

What is a potential consequence of intellectual property and essential expertise migrating out of a company during outsourcing?

Rethinking insourcing strategies Signup and view all the answers

What is one of the primary goals of a global production network?

To manage logistics and production tasks across various geographical sites efficiently Signup and view all the answers

What does the term 'flexibility and capacity fluctuations' refer to in the context of outsourcing?

The ability to manage fluctuating market demands through outsourcing partners Signup and view all the answers

What is the primary function of a lead location within a global production network?

Sets the standard for production and serves as a global hub for knowledge Signup and view all the answers

Which site role is characterized by a focus on operational activities within closed production areas?

Isolated factory Signup and view all the answers

What is a key characteristic of a contributor location in a global production network?

Handles product development Signup and view all the answers

Which site is primarily responsible for developing a supplier network?

Server location Signup and view all the answers

In the global production network framework, which concept emphasizes the classification and analysis of locations?

Global production networks Signup and view all the answers

Among the site roles, which one is most likely to actively exchange innovations and send employees to other locations?

Active Network Player Signup and view all the answers

What criterion is NOT part of selecting a suitable site for production?

Analyze the legal framework of the country Signup and view all the answers

What is the main focus of an outpost location in a global production network?

Handles localized production needs and technical processes Signup and view all the answers

What is the primary focus of prototype production?

Trial production of new products before wider implementation Signup and view all the answers

Which class of logistical data includes frequently changing order-related details?

Logistical transactional data Signup and view all the answers

Which logistics system focuses specifically on the transport of finished products to customers?

Distribution logistics Signup and view all the answers

Which of the following is a characteristic of disposal logistics?

Requires strict adherence to regulations Signup and view all the answers

Which service provision task is primarily conducted in specialized contributor locations?

Ramp-up production Signup and view all the answers

What is considered an example of extremely complex production logistics?

Production and assembly of aircraft Signup and view all the answers

Which of the following challenges is commonly associated with distribution logistics?

Transporting goods that are damaged Signup and view all the answers

What is a defining feature of logistical master data?

They have longer validity independent of physical material flow Signup and view all the answers

Study Notes

Offshoring and Outsourcing

Offshoring involves relocating business processes to another country, such as moving call center services abroad.
Outsourcing refers to transferring parts of the value chain to an external provider, independent of location.
Reasons for Offshoring include:
- Lower wages offering cost reductions.
- Access to qualified personnel and new markets.
- Escape from overregulation and reduction of "time to market."
- Tax advantages and lower environmental standards.
Reasons for Outsourcing include:
- Cost savings and improved quality or innovation.
- Focus on core competencies and risk transfer to suppliers.
- Flexibility to manage capacity fluctuations.
- Access to specialized expertise.
Commonly Outsourced Functions:
- IT operations and services
- Training and further education
- Supply chain management
- Human resources
- Finance and accounting
- Customer relationship management
Insourcing (backsourcing) is the process of bringing previously outsourced functions back in-house due to insufficient benefits, quality issues, or protecting intellectual property.

Global Production Networks

Global Production Network (GPN) is an interconnected system across countries involving organizations, institutions, and consumers in production, distribution, and consumption.
Site Selection Criteria:
- Identify optimal location requirements based on objectives.
- Analyze potential sites and classify location factors.
- Shortlist and select the best locations for operations.
Specific Roles in GPN:
- Lead location: Global hub setting production standards.
- Contributor location: Handles product development.
- Source location: Focuses on process optimization and enhancements.
- Server location: Manages supplier networks.
- Offshore location: Improves processes.
- Outpost location: Manages local purchasing and operations.
Logistics Roles:
- Isolated factory: Focus on operational activities with minimal interaction.
- Receiving factory: Adapts quickly to innovations.
- Hosting Network Player: Facilitates information exchange and staff training.
- Active Network Player: Proactively shares innovations and exchanges staff across locations.

Global Logistics

Logistical Data Types:
- Master data: Long-lasting information, e.g., article numbers.
- Transactional data: Frequently changing order-related data, e.g., invoice numbers.
Logistics Systems:
- Procurement logistics: Manages sourcing, purchasing, and goods flow.
- Production logistics: Oversees raw materials and their movement to production.
- Distribution logistics: Focuses on delivering end products to customers, including challenges like damages and loss.
- Disposal logistics: Deals with waste disposal and recycling under stringent regulations.
Primary Objectives of global logistics include:
- Ensuring smooth material flows across borders.
- Maintaining traceability of goods and information.
- Minimizing throughput times in production and distribution.
- Reducing stock levels through synchronized logistics processes.
Challenges faced in achieving global logistics goals:
- Volatile replenishment times and seasonal availability.
- Disturbances and damage during transportation.
- Infrastructure differences affecting logistics.
- Media disruptions requiring switching transport modes.

Key Terms

Vertical range of manufacture: Degree of in-house production within the value chain.
Local content requirements: Regulations governing service provision in specific countries.
Media disruption: Forced change in transportation methods, causing logistical challenges.

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Description

Test your understanding of international operations, focusing on the concepts of offshoring and outsourcing. This quiz covers how global production networks can be established and the management of international logistics. Dive deep into the reasons behind insourcing and backsourcing decisions.