DHM 4993 EXAM 1 QUESTION AND CORRECT ANSWER 2024 GRADE A+

DHM 4993 EXAM 1 QUESTION AND CORRECT ANSWER 2024 GRADE A+ Global sourcing - CORRECT ANSWER-Refers to a set of business processes and activities by which businesses acquire and deliver components or fully finished products or services from outside the organization. Pros of global sourcing - CORRECT ANSWER--Reduce material/operating cost -Improve quality of products -Increase product availability -Concentration: Allow companies(countries) to focus on their competitive advantages and increase trade between countries Cons of global sourcing - CORRECT ANSWER--Buyer countries (developed countries): Higher rates of unemployment, hidden costs related to different culture, languages and long lead times -Supplier countries (developing countries): Unfair labor practices and environmental degradation Global sourcing (profit) = sustainability - CORRECT ANSWER--Cost reduction -Quality assurance -Quick supply -flexible product supply Global sourcing (people) = sustainability - CORRECT ANSWER--human rights (fair labor practices) -poor labor practices vs. low cost Global sourcing (planet) = sustainability - CORRECT ANSWER--long term impact on the environment -toxic chemical without proper water treatment · Case study 1 (textbook p. 19): Who Designs, markets, and sources Ralph Lauren Products? - CORRECT ANSWER--Ralph Lauren becomes the licensor and the suppliers become the licensees - This allows Ralph Lauren (licensor) to expand its products -The suppliers (licensees) who may plan, design, merchandise, source and distribute the product while using the Ralph Lauren (licensor) logo design directions, color trends. - Ralph Lauren (licensor) would like to control the quality of the licensees design, products, and aspects of the business to ensure brand integrity. (it could reflect poorly on Ralph Lauren · Case study 1 (textbook p. 19): Who Designs, markets, and sources Ralph Lauren Products? (largest licensees) - CORRECT ANSWER--Hanesbrands (underwear/ sleepwear) -Peerless Clothing International (chaps, Lauren, and Ralph tailored clothing) -L'orel (fragrances, cosmetics, color, and skincare) -Luxottica Group (eyewear) -with licensees and wholesale ops, Ralph Lauren works with over 600 different manufacturers -97% of its dollar value is being produced outside of the US Current status of Global sourcing - CORRECT ANSWER-- employment in the US significantly decreased -85% decreased over last 25 yrs - US is the worlds largest apparel importing country -Total US apparel imports 2018: $38 billion Sub-contracting - CORRECT ANSWER-- Orders are sent to the manufacturers(contractors) and then redistributed to a large network of subcontractors. -four tier manufacture chains are the norm for large global retailers -50% of works are sub-contracted in the apparel industry (vs. 20% in other manufacturing industries) Sub-contracting (for retailers) - CORRECT ANSWER--access to a wide network of workers -flexibility in manufacturing -better handle volatile and unpredictable fashion demands - save cost -making additional contracts on temporary basis is expensive (time, training cost) -contractors are not responsible for paying workers compensation benefits for subcontractors Sub-contracting (for manufacturers) - CORRECT ANSWER--production can be relocated/shifted according to vendor capacity (workforce, shortages) -the uncertainty from session to season can be hardship for manufacturers Leading textile export - CORRECT ANSWER-China EU India US Textiles Expoting: China - CORRECT ANSWER-- more efficient supply chain management - modern infrastructure -workers higher productivity -2005 "quotas" removed among wto countries which china benefited from Textiles Expoting: US - CORRECT ANSWER--infrastructure necessary already in place -increasing wage rates abroad without comparable -importance of speed- to- market -policy changes -trans pacific partnership ended in jan. 2017 -technology changes manufacturing process -smart textiles Leading textile import - CORRECT ANSWER-EU US China Leading textile import: China - CORRECT ANSWER--needs additional textiles to accommodate larger demands for apparel products or need technical materials Leading textile import: US - CORRECT ANSWER-- Leading textile importer - textiles used for carpets, furniture, car/airplanes, industrial goods, etc. Leading apparel exports - CORRECT ANSWER-China EU Bangladesh Leading apparel exports: China - CORRECT ANSWER--has been leading country in past two decades -the growth of Bangladesh and Vietnam is note worthy Reshoring - CORRECT ANSWER-the practice of bringing Manufacturing back to U.S from over seas Reshoring facts - CORRECT ANSWER-- restoring in the US apparel mfg has created 17,000 jobs since 2010 -increase demand for made in the USA products /apparel Offshoring - CORRECT ANSWER-The practice of exporting U.S. jobs to lower paid employees in other nations.