OMIS 338 CHAPTER 6 LATEST
UPDATE 2025
A firm is evaluating the alternative of manufacturing a part that is currently being
outsourced to a supplier. The annual fixed costs and the variable cost per part for in-
house manufacturing are $90,000 and $140, respectively, while the unit price at the
supplier is $200. Once the demand is 3,500 units, report the best choice and its savings
against the alternative.
A. In-house manufacturing, $120,000 in savings
B. Keep outsourcing, $120,000 in savings
C. Keep outsourcing, $60,000 in savings
D. In-house manufacturing, $60,000 in savings - ANSWER A. In-house manufacturing,
$120,000 in savings
Major airlines and trucking firms use what type of supply chain design?
A. Linked chain
B. Hub and spoke
C. Linked wheel
D. Omni-channel - ANSWER B. Hub and spoke
A firm is evaluating the alternative of manufacturing a part that is currently being
outsourced to a supplier. The annual fixed costs and the variable cost per part for in-
house manufacturing are $75,000 and $140, respectively, while the unit price at the
supplier is $150. Determine the break-even quantity at which the firm would be
indifferent between manufacturing the part in-house or outsourcing it.
A. 7,125 parts
B. 7,400 parts
C. 7,500 parts
D. 7,575 parts - ANSWER C. 7,500 parts
Modeling complex transportation configurations and conducting what-if analyses to
evaluate alternative strategies are part of the optimization process of supply chains.
What situation could NOT be examined through a what-if analysis?
A. Impact of demand variations on delivery routes
B. Price changes and discounts
C. Shipping cost minimization
D. Deletion of product lines - ANSWER C. Shipping cost minimization
Which process refers to acquiring capabilities toward suppliers?
UPDATE 2025
A firm is evaluating the alternative of manufacturing a part that is currently being
outsourced to a supplier. The annual fixed costs and the variable cost per part for in-
house manufacturing are $90,000 and $140, respectively, while the unit price at the
supplier is $200. Once the demand is 3,500 units, report the best choice and its savings
against the alternative.
A. In-house manufacturing, $120,000 in savings
B. Keep outsourcing, $120,000 in savings
C. Keep outsourcing, $60,000 in savings
D. In-house manufacturing, $60,000 in savings - ANSWER A. In-house manufacturing,
$120,000 in savings
Major airlines and trucking firms use what type of supply chain design?
A. Linked chain
B. Hub and spoke
C. Linked wheel
D. Omni-channel - ANSWER B. Hub and spoke
A firm is evaluating the alternative of manufacturing a part that is currently being
outsourced to a supplier. The annual fixed costs and the variable cost per part for in-
house manufacturing are $75,000 and $140, respectively, while the unit price at the
supplier is $150. Determine the break-even quantity at which the firm would be
indifferent between manufacturing the part in-house or outsourcing it.
A. 7,125 parts
B. 7,400 parts
C. 7,500 parts
D. 7,575 parts - ANSWER C. 7,500 parts
Modeling complex transportation configurations and conducting what-if analyses to
evaluate alternative strategies are part of the optimization process of supply chains.
What situation could NOT be examined through a what-if analysis?
A. Impact of demand variations on delivery routes
B. Price changes and discounts
C. Shipping cost minimization
D. Deletion of product lines - ANSWER C. Shipping cost minimization
Which process refers to acquiring capabilities toward suppliers?
