Reference no: EM13351250
Q 1
Which of the following are NOT true?
A. Delay in a critical activity does not necessarily mean a delay in the overall project.
B. It is possible to have more than one critical path.
C. For finding the critical path computationally, we have to resort to forward pass as well as backward pass computations.
D. The backward pass involves the calculation of late start and late finish times.
E. None of the above.
Q 2
The purpose of the performing a forward pass is to
A. Identify the critical path.
B. Determine the early start and early finish times.
C. Determine the late start and late finish times.
D. Determine the slack available in the process.
E. All of the above
Q 3
Slack for an activity is defined as
A. The amount of time the project is idle
B. The amount of time that the activity can increase without delaying the start of the very next activity
C. The amount of time that the activity duration can be increased without delaying project completion
D. The amount of time that workers won't have duties to perform
Q 4
Which of the following statements is true about a critical path?
A. Critical path consist of activities wherein early start time equals late start time.
B. The activity along the critical path takes the longest processing time.
C. Critical path consist of activities wherein early finish time equals late finish time.
D. There is no slack in the activities along the critical path.
E. All the above
Q 5
Which of the following statements is incorrect about PERT Method of project scheduling?
A. PERT requires three time estimates for scheduling a given activity.
B. PERT assumes that the actual activity times are distributed according to the beta probability distribution.
C. PERT assumes that the statistical variation in total project completion times can be computed by multiplying variances along the critical path.
D. None of the above
Q 6
Which of the following statements about CPM is true?
A. CPM is an example of constant time project scheduling method.
B. CPM method is well suited when activity times are expected to vary a lot.
C. CPM method is well suited when activity times are fairly constant and can be reduced by spending more money.
D. CPM method is well suited for R&D projects and for scheduling computer systems.
E. None of the above
Q 7
Which of the following statements is INCORRECT about managing inventory in supply chains?
A. Coordination among supply chain partners is essential while managing inventory across the supply chain.
B. Total cost minimization approach can be equally applied while managing inventory across the supply chain.
C. In a supply chain, a single firm typically controls all the inventories that are required while manufacturing a product.
D. None of the Above
Q 8
Which of the following is NOT a purpose of inventory?
A. To decrease obsolescence
B. To keep the "pipeline" full
C. To protect against uncertainties
D. To allow economic production and purchase
Q 9
Transportation cost is an example of:
A. Item cost
B. Ordering cost
C. Carrying cost
D. Stockout cost
E. Storage cost
Q 10
Which of the following statements is true about the Q-system?
A. The order interval is fixed not the order quantity.
B. It does not have a reorder point but rather a target inventory.
C. The system is completely determined by the two parameters, Q and R.
D. It does not have an EOQ, since the quantity varies according to demand.
E. None of the above is true.
Q 11
Which type of MRP system is used as an information system to plan and control inventories and capacities?
A. Type I
B. Type II
C. ERP
D. None of the above
Q 12
Which of the following is not a way of handling uncertainty when operating an MRP system?
A. Safety stock
B. Safety lead time
C. Safety capacity
D. Back-up suppliers
Q 13
_______ system uses requirements order philosophy, while _____ system uses replenishment order philosophy.
A. Order point, MRP
B. MRP, order point
C. EOQ, Quantity Discount
D. P, Q
E. Q, P
Q 14
The next two Qs refer to the following table, which defines a project.
ActivityImmediate PredecessorsActivity Time
A-5 days
BA7 days
CA8 days
DB6 days
EC4 days
FE4 days
GD, F3 days
The minimum time required to complete the project is:
A. 37 days
B. 24 days
C. 22 days
D. 21 days
E. none of the above
Q 15
Using the data of Q 14, the slack time for activity B is:
A. 0 day
B. 1 day
C. 3 days
D. 7 days
Q 16
Use the network given in the Word file in the Final Examination Session under Course Content. The early start time (ES) for job G is:
A. 4
B. 16
C. 18
D. 22
E. 26
Q 17
Use the network given in the Word file in the Final Examination Session under Course Content. The late finish time (LF) for job B is
A. 8
B. 13
C. 16
D. 20
E. 22
Q 18
Use the network given in the Word file in the Final Examination Session under Course Content. The critical path is given by:
A. A → B → E → H
B. A → B → F → H
C. A → C → F → H
D. A → C → F → G → H
E. A → D → G → H
Q 19
Use the network given in the Word file in the Final Examination Session under Course Content. The slack at activity D is:
A. 0
B. 5
C. 8
D. 9
E. None of the above
Q 20
One part of a PERT project, installing equipment, will most likely be completed in 7 days. However, if there are no worker absences, the equipment can be installed in 4 days. If a members the work force happens to catch Bubonic Flu, this year's disease, the installation will take 16 days. What is the expected time (te) for the equipment installation?
A. 4 days
B. 7 days
C. 8 days
D. 12 days
E. 16 days
Q 21
Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order. Assume that there are 50 weeks in the work year and 5 working days per week. The lead-time for the product is 2 weeks. The EOQ is:
A. 21.91 units
B. 154.92 units
C. 219.09 units
D. 300 units
E. none of the above
Q 22
Using the data of Q 21: If 200 units are ordered each time, then what will be the total annual holding cost?
A. $150
B. $250
C. $300
D. $500
E. $200
Q 23
Using the data of Q 21: If 200 units are ordered each time, how many orders will be placed in a year?
A. 2
B. 5
C. 10
D. 20
E. 25
Q 24
Using the data of Q 21: If 160 units are ordered each time, then the time between orders (in working days) is
A. 2
B. 5
C. 10
D. 20
E. 25
Q 25
Using the data of Q 21: If 200 are ordered each time, then what will be the total annual order cost?
A. $50
B. $100
C. $200
D. $250
E. $300
Q 26
Use the data of Q 21 and assume no safety stock or service level requirement. In order not to run out of stock before the receipt of a new order, at what inventory level should the firm place an order? That is, what is the reorder point equal to?
A. 40
B. 160
C. 266
D. 400
E. 500
Q 27
A firm desires to control inventory levels so as to minimize the sum of holding and order costs. It costs the firm $20 to place an order. The firm estimates its yearly inventory carrying costs at 20%. Weekly demand is 100 units, and there are 50 weeks in the work year. The item costs $10 per unit. The EOQ is approximately:
A. 316
B. 224
C. 145
D. 45
E. 32
Q 28
Lincoln Machine Tool Company maintains an inventory pool consisting of 10 items. Each of these items has a unique demand pattern and may require a different kind of inventory management system. The annual demand pattern and the unit cost of these items are given in the following table. Classify the items in A, B, and C categories according to annual dollar usage.
Item TypeAnnual Usage
in thousandsUnit Cost
in Dollars
Item 110$2.50
Item 230$1.25
Item 320$16
Item 410$0.75
Item 520$3.00
Item 633$2.50
Item 760$14.25
Item 822$10.00
Item 9100$2.75
Item 10500$4.25
Item 7 will be classified as:
A. A item
B. B item
C. C item
D. None of the above
Q 29
Using the data of Q 28, Item 6 will be classified as:
A. A item
B. B item
C. C item
D. None of the above
Q 30
Using the data of Q 28, Item 8 will be classified as:
A. A item
B. B item
C. C item
D. None of the above
Q 31
One end item A requires three component parts: B, C, and D. The bill of material indicates that for each completed A, 3 units of B, 2 units of C, and 1 unit of D are required. Current inventory for the four items is as follows: There are 18 As, 40 Bs, 50 Cs and 35 Ds in stock. If the lead time for all items is one week and there are no scheduled receipts for any item, how many units of product A can be delivered to customers at the start of next week (week 2)?
A. 35
B. 31
C. 25
D. 13
E. None of the above
Q 32
Product D has gross requirements, on-hand inventory, and scheduled receipts as indicated in the time-phased inventory status record below. Its lead time is 3 weeks.
Item D12 3 45 6
Gross Requirements1004000600200 50
On Hand/ Scheduled Receipts200800
Net Requirements A
Planned Order Releases B
The value of entry A is:
A. 100
B. 200
C. 400
D. 600
E. None of the above.
Q 33
Product D has gross requirements, on-hand inventory, and scheduled receipts as indicated in the time-phased inventory status record below. Its lead time is 3 weeks.
Item D12 3 45 6
Gross Requirements1004000600200 50
On Hand/ Scheduled Receipts200800
Net Requirements A
Planned Order Releases B
The value of entry B is:
A. 50
B. 200
C. 250
D. 350
E. None of the above
Q 34
Use the BOM given in the Word file in the Final Examination Session under Course Content. If the master schedule calls for the production of 50 A units how many item E units are needed?
A. 50
B. 150
C. 300
D. 450
E. None of the above
Q 35
Use the BOM given in the Word file in the Final Examination Session under Course Content. If MPS calls for the production of 50 A units, how many item D units are needed?
A. 100
B. 200
C. 600
D. 700
E. None of the above
Q 36
Use the BOM given in the Word file in the Final Examination Session under Course Content Now assume that 20 item A units are called for by the MPS. On-hand inventory consists of 10 units each of items B and D. What is the net requirement for item D?
A. 110
B. 220
C. 230
D. 290
E. None of the above
Q 37
A particular brand of soap has a lead time of three weeks to reorder, a weekly standard deviation of ten (10) units and a weekly average usage of thirty (30) units. The reorder point for this soap, assuming a 95% service level (z = 1.65), is (approximately): (Hint: Follow the example on Page 395-6)
A. 46.50
B. 81.96
C. 106.50
D. 118.58
E. None of the above
Q 38
The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. If the run time for producing a batch of saddles is 4 days, the rate of production is uniform at 600 saddles per day, and the uniform usage rate is 150 saddles per day, what is the maximum inventory quantity? (Round to the nearest integer value)
A. 600 saddles
B. 1800 saddles
C. 2400 saddles
D. 3000 saddles
E. None of the above