SCM 352 Final

Which of the following is NOT true about Gantt​ charts? Gantt charts adequately illustrate the interrelationships between the activities and the resources. Gantt charts are​ low-cost means of helping managers make sure that activities are planned. Gantt charts also can be used for scheduling repetitive operations. Gantt charts are planning charts used to schedule resources and allocate time.

Gantt charts adequately illustrate the interrelationships between the activities and the resources.

what type of costs happen during the holding stage?

Housing costs, material handling costs, pilferage, space and and obsoleteescnece

What is the purpose of the abc classification system?

Used to establish policies that focus on the few critical parts and not the many trivial ones

Which of the following situations could lead to an ethical code​ violation? Rewarding a contractor the job after receiving a large gift Cutting corners to save time and money Altering status reports to mask the reality of project delays All of the above

all of the above

What is a course of action or strategy that may be chosen by a decision​ maker? mission state of nature mode alternative

alternative

ABC analysis divides an​ organization's on-hand inventory into three classes based upon annual dollar volume. the number of units on hand. annual demand. unit price.

annual dollar volume

Which of the following is NOT an advantage of​ simulation? Time compression" is possible Each simulation model is unique. ​Real-world complications can be included that most OM models cannot permit. Simulation allows​ "what-if?" types of questions.

each simulation is unique (this is bad, as different simulations will always return different results)

what is safety stock?

extra stock that is maintained to mitigate risk of stockouts (shortfall in raw material or packaging) caused by uncertainties in supply and demand.

The critical path of a network is the longest time path through the network. shortest time path through the network. path with the fewest activities. path with the most activities.

longest time path through the network.

Which of the following is a direct responsibility of the project​ manager? calculating completion probabilities for all tasks in the project drawing the network diagram performing all of the activities in the project making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs

making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs

William​ Beville's computer training​ school, in​ Richmond, stocks workbooks with the following​ characteristics: Demand D 19,400 units/year Ordering cost S ​$23​/order Holding cost H ​$3​/unit/year What are the annual holding costs?

(545/2) * 3 = 818

what is the difference between the max and min strategies? why is maximax considered optimistic and maximin is considered pessimistic?

Because the maximax strategy will show you the maximum amount of money you can make froma decision. Because the maximin strategy will show you the least amount of money you will make from a decision.

What is the expected value with perfect information (EVwPI)?

Best outcome for 2nd state of nature) x (Probability of 2nd state of nature) ... + Best outcome for last state of nature) x (Probability of last state of nature)

Which of the following situations could lead to an ethical code​ violation? Altering status reports to mask the reality of project delays Cutting corners to save time and money Rewarding a contractor the job after receiving a large gift All of the above

All of the above

William​ Beville's computer training​ school, in​ Richmond, stocks workbooks with the following​ characteristics: Demand D 19,400 units/year Ordering cost S ​$23​/order Holding cost H ​$3​/unit/year What is the eqq?

545

what is a decision tree?

A decision tree is a graphic display of the decision process that indicates: · decision alternatives · states of nature and their respective probabilities · payoffs for each combination of decision alternative and state of nature

what is expected value of perfect information ?

EVPI is the difference between the payoff under certainty and the payoff under risk

What is a simulation technique that uses random elements when chance exists in their​ behavior? Las Vegas method Monte Carlo method Atlantic City method Blackjack method

Monte Carlo Method

The basis of Monte Carlo simulation is experimentation on probabilistic elements by means of linear programming. random sampling. ​least-squares regression. analysis of variance​ (ANOVA).

Random Sampling

Which of the following is the FIRST step of Monte Carlo​ simulation? Establishing an interval of random numbers for each variable. Setting up a probability distribution for important variables. Building a cumulative probability distribution for each variable. Generating random numbers.

Setting up a probability distribution for important variables.

Which of the following is TRUE regarding​ simulations? Simulations are best suited to handle​ small-scale problems Simulations allow managers to test out several policies in a short amount of time Simulations are restricted to using the Normal distribution Simulations are easy and quick to develop

Simulations allow managers to test out several policies in a short amount of time

The objective of inventory management is to take advantage of quantity discounts. decouple various parts of the production process. provide a selection of goods for anticipated customer demand. strike a balance between inventory investment and customer service.

Strike a balance between inventory investment and customer service

Which professional organization provides standards in ethical codes for project​ management? Project Evaluation and Review Team​ (PERT) Project Management Institute​ (PMI) Committee on Project Management​ (CPM) Project Management Organization​ (PMO)

project management institute

Which of the following is a direct responsibility of the project​ manager? performing all of the activities in the project drawing the network diagram making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs calculating completion probabilities for all tasks in the project

making sure that the people assigned to the project receive the​ motivation, direction, and information needed to do their jobs

Which of the following does NOT belong to holding​ costs? insurance on inventory ​pilferage, scrap, and obsolescence storage costs order processing

order processing (this is order/setup cost)

Which of the following does NOT belong to holding​ costs? order processing ​pilferage, scrap, and obsolescence storage costs insurance on inventory

order processing (this would be order/setup cost)

Gantt charts are not easy to understand. widely used network techniques. planning charts used to schedule resources and allocate time. not widely used.

planning charts used to schedule resources and allocate time.

The three phases involved in the management of large projects are ​planning, scheduling, and controlling. ​scheduling, operating, and evaluating. ​planning, scheduling, and evaluating. ​scheduling, designing, and operating.

planning scheduling and controlling

what three phases are involved with PM?

planning, scheduling, controlling

Which of the following types of inventory describes inventory that has been purchased but not​ processed? maintenance/repair/operating supply inventory ​finished-goods inventory ​work-in-process inventory raw material inventory

raw material inventory

what type of costs occur before holding costs are incured?

setup and ordering costs

What is the cost to prepare a machine or process for​ production? ordering cost setup cost holding cost preparation cost

setup cost

What is the attempt to duplicate the​ features, appearance, and characteristics of a real​ system, usually via a computerized​ model? duplication analysis randomization queuing analysis simulation

simulation

What is an occurrence or a situation over which the decision maker has little or no​ control? unactionable event state of nature alternative chance event

state of nature

The project organization may be LESS helpful when the work contains complex interrelated tasks requiring specialized skills. work tasks can be defined with a specific goal and deadline. the job is familiar to the existing organization. the project cuts across organizational lines.

the job is familiar to the existing organization

The effects of OM policies over many months or years can be obtained by computer simulation in a short time. This phenomenon describes which of the​ following? probability distributions ​what-if analysis time compression duration analysis

time compression

Critical path analysis helps us determine which characteristic of a​ project? Number of employees Cost Activity predecessors Time to complete

time to complete

One use of inventory is to ensure that item cost is maximized. to provide a hedge against inflation to tightly synchronize production and distribution processes. to tightly synchronize a​ firm's production with its​ customers' demand.

to provide a hedge against inflation

1. How is the expected monetary value (EMV) calculated? What does it mean?

· (Payoff of 1st state of nature) x (Probability of 1st state of nature) · (Payoff of 2nd state of nature) x (Probability of 2nd state of nature) · (Payoff of last state of nature) x (Probability of last state of nature) Expected monetary value is how much money you expect to lose or gain from making a certain decision

Monte Carlo method steps

· 1: Set up probability distributions for important variables · 2: Build a cumulative probability distribution for each variable · 3: Establish an interval of random numbers for each variable · 4: Generate random numbers · 5: Simulate a series of trials

what is the purpose of project organization?

· Allocation of resources fpr optimal utilization · Tasks, goals, and the time allowed to complete them · Define new or unique jobs · Handle temporary/importsnt projects

What is simulation modeling and what are business applications of simulation modeling?

· An attempt to duplicate the features, appearance, and characteristics of a real system Applications: · Bus scheduling · Assembly-line balancing · Scheduling aircraft · Labor-hiring decisions · Personnel scheduling · Etc

disadvantages of sim modeling

· Can take a long time to develop · repetitive approach that may produce different solutions in repeated runs · Managers must generate all of the conditions and constraintsfor solutions they want to examine · Each simulation model is unique

Decision making process steps

· Clearly define the problems and the factors that influence it · Develop specific and measurable objectives · Develop a model · Evaluate each alternative solution · Select the best alternative · Implement the decision and set a timetable for completion

What does CPM and PERT stand for?

· Critical path method · Program Evaluation Review Technique

major assumptions of the eqq model?

· Demand is known, constant and independanyt · Lead time is known and constant · Receipt of inventory in instantaneous and complete · Quanitity discounts are not possible · Only variable costs are setup and holding · Stockouts can be completely avoided

What is the significance of the critical path?

· Looking at timeframes · Improves resource management Better planning · Better team management longest path thru a firm/company

Explain why it is necessary to include product cost (price or price times quantity) in the quantity discount model, but not in the basic EOQ model

· Reduced prices are often available when larger quantities are purchased · Trade-off is between reduced product cost and increased holding cost

who developed Monte Carlo simulation?

· Stanislaw Ulam, los alamos national laboratory · John von Neumann utilized it to calculate artillery firing tables for the United States Army's Ballistic Research Laboratory

What is the use of Gantt charts in project management?

· They help you assess how long a project should take · determine the resources needed · plan the order in which you'll complete tasks · also helpful for managing the dependencies between tasks.

advantages of simulation modeling

· Used to solve large and complex problems couldn't be solved otherwise · Include real world implications other om models cant · Time compression is possible · Allows "what-if" types of questions and different policy decisions can be quickly evaluated · Does not interfere with real-world systems

What are some questions that can be answered with PERT or CPM?

· When will the entire project be completed? · What are the critical activities or tasks in the project? · Is the project on schedule, behind schedule, or ahead of schedule? · Is the money spent equal to, less than, or greater than the budget? · Are there enough resources available to finish the project on time?

What is the theory behind Monte Carlo simulation?

· can be used to solve any problem having a probabilistic interpretation. · a method for iteratively evaluating a deterministic model using sets of random numbers as inputs. · inputs are randomly generated from probability distributions to simulate the process of sampling from an actual population. So, we try to choose a distribution for the inputs that most closely matches data we already have, or best represents our current state of knowledge. · The data generated from the simulation can be represented as probability distributions · "a random sample tends to exhibit the same properties as the population from which it is drawn"

why use simulation modeling?

· the default solution methodology for problems that are too complex to solve analytically. · can mimic very complicated scenarios with many random variables. · actual system being modeled does not have to be physically built and tested, and computer simulation can compress time (run "years" of simulated time in just seconds or minutes). · Sophisticated modeling takes a fair amount of training, but regular business managers can develop certain types of Monte Carlo simulations rather easily with Excel.

The three phases involved in the management of large projects are ​scheduling, designing, and operating. ​planning, scheduling, and evaluating. ​planning, scheduling, and controlling. ​scheduling, operating, and evaluating.

​planning, scheduling, and controlling.