48) Refer to the instruction above. What are total costs to make a quantity of 40,000 units per year?A) $400,000B) $450,000C) $800,000D) $850,000Answer: DReference: Outsourcing ProcessesDifficulty: EasyKeywords: outsourcing, make-or-buy decisionsAACSB: Analytic skills12
49) Refer to the instruction above. For what range of output would you prefer to buy?50) Refer to the instruction above. For what range of output would you prefer to make?51) Refer to the instruction above. What does the company save for the year by selecting the low-cost option at an annual requirement of 40,000 units?13
52) Which of the following is not a benefit of outsourcing?A) comparative labor costsB) lower logistics costsC) reduction of transaction costs through use of the InternetD) technology transfer to another country or companyAnswer: DReference: Outsourcing ProcessesDifficulty: ModerateKeywords: outsourcing, make-or-buy decisionsLearning Outcome: Compare and contrast different sourcing strategies including outsourcing and insourcing53) A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of:54) An efficient supply chain should be preferred when:
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- Supply Chain Management