Supply Chain Management 345 (Ch 11,12,13 & 17)

What is the best visual way to display graphically the scheduled times for activities in a project? a precedence relationship table an affinity diagram a Gantt chart a project structure tree an histogram

a Gantt chart

If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost? $2,400,000 $1,200 $600,000 $1,200,000 $50

$1200

Which model inventory management model did we address in class? Fixed-period systems EOQ with quantity discount All of the above Basic EOQ ABC classification

All of the above

If the EOQ is ordered, which of the following is true? The sum of annual ordering cost plus annual holding cost is maximized. Annual holding cost exceeds annual ordering cost. Annual ordering cost exceeds annual holding cost. Annual ordering cost is equal to annual holding cost. The annual holding cost curve is decreasing.

Annual ordering cost is equal to annual holding cost.

The MRP file that contains data on specific materials used to make final products and their correct quantities is the: authorized master production schedule bill of materials file inventory records file part status file routing file

Bill of materials file

Project managers use network planning techniques to ___________________. invert activities assign resources to activities estimate how long it will take to assign activities calculate the expected completion time of the project evaluate costs

Correct calculate the expected completion time of the project

If a delay in an activity will delay completion of the whole project, the activity ___________. has slack is a dummy is costly is on the critical path is represented by a node

Correct is on the critical path

Which of the following would probably not benefit from the use of critical path scheduling? receiving orders for the company's products by phone moving the company's credit card center to a new city constructing a new bridge over the Mississippi River developing a new computer system for financial planning building a new natural gas pipeline

Correct receiving orders for the company's products by phone

Which of the following is not characteristic of a project? has multiple activities has a specific objective typically performed by external consultants activities have defined precedence relationships to be completed in a specified time period

Correct typically performed by external consultants

Clarissa Seager is the purchasing agent for Central Valve Company, which sells industrial valves and fluid-control devices. One of its most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90.00, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Central Valve stocks, and she has concluded that the average ordering cost is $25.00 per order. Furthermore, it takes about 8 work days for an order to arrive from the supplier. During this time, the demand per week (= 5 work days) for Central's valves is approximately 80. Assume there are 250 work days per year. What is the minimum total annual inventory cost (carrying cost + ordering cost)?

Correct 1,341.67

Clarissa Seager is the purchasing agent for Central Valve Company, which sells industrial valves and fluid-control devices. One of its most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90.00, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Central Valve stocks, and she has concluded that the average ordering cost is $25.00 per order. Furthermore, it takes about 8 work days for an order to arrive from the supplier. During this time, the demand per week (= 5 work days) for Central's valves is approximately 80. Assume there are 250 work days per year. What is the reorder point?

Correct: 128

Question 6, 7, 8, 9 and 10 are about the following problem (similar to the one in my video lecture) Clarissa Seager is the purchasing agent for Central Valve Company, which sells indus¬trial valves and fluid-control devices. One of its most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90.00, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Cen¬tral Valve stocks, and she has concluded that the average ordering cost is $25.00 per order. Furthermore, it takes about 8 work days for an order to arrive from the supplier. Dur¬ing this time, the demand per week (= 5 work days) for Central's valves is approximately 80. Assume there are 250 work days per year. What is the economic order quantity? Please round up to the nearest unit

Correct: 149.5

Clarissa Seager is the purchasing agent for Central Valve Company, which sells industrial valves and fluid-control devices. One of its most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90.00, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Central Valve stocks, and she has concluded that the average ordering cost is $25.00 per order. Furthermore, it takes about 8 work days for an order to arrive from the supplier. During this time, the demand per week (= 5 work days) for Central's valves is approximately 80. Assume there are 250 work days per year. What is the optimal number of orders per year? Round the number up to the nearest unit

Correct: 27

Clarissa Seager is the purchasing agent for Central Valve Company, which sells industrial valves and fluid-control devices. One of its most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90.00, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Central Valve stocks, and she has concluded that the average ordering cost is $25.00 per order. Furthermore, it takes about 8 work days for an order to arrive from the supplier. During this time, the demand per week (= 5 work days) for Central's valves is approximately 80. Assume there are 250 work days per year. What is the optimal number of days between any two orders assuming there are 250 working days per year? Please round to the nearest unit

Correct: 9

What type of aggregate plan sets labor and equipment capacity to meet demand each period? uniform level chase mixed steady

Correct: chase

Shortening the total time for completing a project by incurring higher costs from shortening activities is_____________. backward pass crashing normal cost project control leveling

Correct: crashing

Which of the following most closely describes dependent demand? demand generated by suppliers demand that is seasonal demand estimates using regression demand derived from finished products demand for repair parts

Correct: demand derived from finished products

What type of aggregate plan maintains a constant workforce and produces the same amount of product in each time period? uniform level chase mixed steady

Correct: level

A disadvantage of the level aggregate plan is __________________________. workforce instability excess hiring layoffs possible poor customer service from extensive use of backorders excessive purchase of additional tools and equipment

Correct: possible poor customer service from extensive use of backorders

Which of the following is an assumption of the basic EOQ model? Lead time is unknown. Lost sales are allowed, but not back orders. Quantity discounts are considered. Orders can arrive in partial shipments. Demand is known and constant.

Demand is known and constant

We use ___________ time estimates when we can make a reliable estimate. estimated deterministic cumulative probabilistic variabl

Deterministic

_______________ structure the sequencing of activities. Work breakdowns Evaluation of costs Crashings Precedence relationships Backschedules

Precedence relationships

When we are unsure about the duration of project activities, we use ________ time estimates. estimated deterministic variable probabilistic cumulative

Probabilistic

Which of the following is not included in a PERT chart node Earliest start date Slack time Standard deviation Task duration Late start date

Standard deviation

What costs are considered in the basic EOQ model's total cost function? annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs annual ordering costs + annual holding costs + annual shortage costs annual purchasing costs + annual holding costs annual ordering costs + annual holding costs ordering costs per order + annual holding costs

annual ordering costs + annual holding costs