Reference no: EM13922540

1. A bottleneck activity in a process is generally the activity with

• the smallest number of resources devoted to it.
• the least capacity
• no delays in front of it.
• the highest cost

2. If a company can eliminate all sources of variance in a process, then

• it will be able to operate at maximum capacity at all times.
• there will be no constraints in the process.
• continuous improvement will not be necessary.
• None of the above

2. Which of the following statements about economies of scale is not true?

• One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases
• One reason economies of scale occur is because employees become more efficient as volume increases.
• Economy of scale refers to the fact that as volume increases, total cost of production decreases.
• Economies of scale may not exist at all levels of production.

3. End item A is made by assembling two parts of B and four parts of C. Part C is made from three parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C?

• 70 units
• 200 units
• 125 units
• 100 units

5. The positioning and replenishment of finished goods inventories at the retail level can be determined using

• MRP
• CRP
• DRP
• RFID

6. Benefits of ERP systems include all of the following except

• easy implementation
• fewer data entry errors
• more informed business decisions
• improved customer service