GlobalBusinessTodayNinthEditionChapter15GlobalProductionandSupply-ChainManagementChapterOutlineOPENINGCASE:Apple:TheBestSupplyChainsintheWorld?INTRODUCTIONSTRATEGY,PRODUCTION,ANDSUPPLY-CHAINMANAGEMENTWHERETOPRODUCECountryFactorsManagementFocus:PhilipsinChinaTechnologicalFactorsProductionFactorsTheHiddenCostsofForeignLocationsManagementFocus:GEMovesManufacturingfromChinatotheUnitedStatesMAKE-OR-BUYDECISIONSGLOBALSUPPLY-CHAINFUNCTIONSGlobalLogisticsGlobalPurchasingMANAGINGAGLOBALSUPPLYCHAINRoleofJust-in-TimeInventoryRoleofInformationTechnologyandtheInternetCoordinationinGlobalSupplyChainsInterorganizationalRelationshipsSUMMARYCRITICALTHINKINGANDDISCUSSIONQUESTIONSCLOSINGCASE:H&M:TheRetail-ClothingGiantLearningObjectives©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.281GlobalBusinessTodayNinthEditionChapter151.Explainwhyproductionandsupply-chainmanagementdecisionsareofcentralimportancetomanyglobalcompanies.2.Explainhowcountrydifferences,productiontechnology,andproductionfactorsallaffectthechoiceofwheretolocateproductionactivities.3.Recognizehowtheroleofforeignsubsidiariesinproductioncanbeenhancedovertimeastheyaccumulateknowledge.4.Identifythefactorsthatinfluenceafirm’sdecisionofwhethertosourcesuppliesfromwithinthecompany,orfromforeignsuppliers.5.Understandthefunctionsoflogisticsandpurchasing(sourcing)withinglobalsupplychains.6.Describewhatisrequiredtoefficientlymanageaglobalsupplychain.ChapterSummaryThischapterexplorestheissuesassociatedwithglobaloperationsmanagement.Attheoutset,theauthordefinesthetermsoperations,production,andmaterialmanagement,andthengoesontodiscusstheimportanceoftotalqualitymanagement(TQM)andISO9000.Particularemphasisisplacedonthetopicsofwhereinternationalfirmsshouldlocatetheirmanufacturingoperationsandhowinternationalfirmsdecidedwhethertomakeorbuycomponentparts.Inregardstotheformer,theauthorsarguethatcountryfactors,technologicalfactors,andproductionfactorsinfluenceamanufacturer’slocationdecision.Inregardtomake-or-decisions,theauthorprovidesabalanceddiscussionoftheadvantagesanddisadvantagesofbuyingcomponentsparts(intheworldmarketplace)opposedtomakingthemin-house.Thechapterconcludeswithadiscussionofwhatisrequiredtoefficientlymanageaglobalsupplychain.OpeningCase:Apple:TheBestSupplyChainintheWorldSummaryTheopeningcaseexploresglobalproductionandsupplychainmanagementatApple.Applehasbeenrecognizedasbeingaleaderwhenitcomestosupplychainmanagementespeciallyforitsabilitytoincreaseitsvolumeinbothhardwareandsoftware.Now,withthegoalofcapitalizingonthegrowingmarketinChina,Appleisquicklyestablishingitspresenceinthecountrybyhiringnotonlyengineers,butalsosupplychainmanagerstoensurethatitbringsitscompetitiveadvantageassociatedwithitssupplychaintothecountry.Discussionofthecasecanrevolvearoundthefollowingquestions:QUESTION1:WhatdifferentiatesApplefromothercompanieswhenitcomestosupplychainmanagement?©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.282GlobalBusinessTodayNinthEditionChapter15ANSWER1:Apple’ss...