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1. The following table defines a project.

Activity

Immediate Predecessors

Activity Time

A

–

5 days

B

A

9 days

C

A

8 days

D

B

6 days

E

B, C

4 days

F

E

4 days

G

D, F

3 days

The minimum time required tocomplete the project is:

A) 23days

B) 24days

C) 25days

D) 39days

E) noneof the above

2. Usethe network given in the Word file in the Final Examination Session underCourse Content. The early start time(ES) for job G is:

A) 13

B) 16

C) 21

D) 25

E) 38

3. Usethe network given in the Word file in the Final Examination Session underCourse Content. The late finish time(LF) for job C is

A) 7

B) 14

C) 16

D) 21

E) 22

4. Usethe network given in the Word file in the Final Examination Session under CourseContent. The critical path is given by:

A) A ? B ? E ? H

B) A ? B ? F ? H

C) A ? B ? F ? G ? H

D) A ? C ? F ? H

E) A ? C ? F ? G ? H

5. Usethe network given in the Word file in the Final Examination Session underCourse Content.

The minimum time required to complete the projectis:

A) 23days

B) 25days

C) 29days

D) 31days

E) noneof the above

6. Usethe network given in the Word file in the Final Examination Session underCourse Content. The slack at activity Dis:

A) 0

B) 5

C) 8

D) 13

E) None of the above

7. Onepart of a PERT project, installing equipment, will most likely be completed in 6days. However, if there are no workerabsences, the equipment can be installed in 3 days. If a members the work force happens to catchBubonic Flu, this year’s disease, the installation will take 15 days. What is the expected time (te) forthe equipment installation?

A) 3 days

B) 6 days

C) 7 days

D) 8 days

E) 15 days

8. Afirm desires to control inventory levels so as to minimize the sum of holdingand order costs. It costs the firm $50to place an order. The firm estimatesits inventory carrying costs at $2/unit/year. Weekly demand is 100 units, and there are 50 weeks in the work year. The item costs $10 per unit. The lead-time for the product is 3weeks. Assume that there are 5 workingdays per week.

Whatquantity of items should the firm order each time so as to minimize totalinventory costs, i.e., what is the EOQ?

A) 100

B) 224

C) 500

D) 1000

E) none of the above

9. Usingthe data of Question 8: If 400 units are ordered each time (i.e., EOQ = 400),then what will be the total annual holding cost?

A) $100

B) $200

C) $400

D) $800

E) $4000

10. Usingthe data of Question 8: If 200 units are ordered each time, how many orders will be placed in ayear?

A) 2

B) 5

C) 10

D) 20

E) 25

11. Usingthe data of Question 8: If 200 units are ordered each time, then the time between orders (in working days)is

A) 2

B) 5

C) 10

D) 20

E) 25

12. Usingthe data of Question 8: If 1000 are ordered each time, then what will be the total annual order cost?

A) $50

B) $100

C) $200

D) $250

E) $300

13. Use thedata of Question 8 and assume no safety stock or service levelrequirement. In order not to run out ofstock before the receipt of a new order, at what inventory level should thefirm place an order? That is, what isthe reorder point equal to?

A) 50

B) 160

C) 200

D) 300

E) 400

14. Given that unit cost = $25, annual carrying charge = 10%,annual demand = 7500 units and ordering cost = $15 per order. Assume that there are 50 weeks in the workyear and 5 working days per week. Thelead-time for the product is 2 weeks. The EOQ is:
A) 150 units
B) 212.13 units
C) 300 units
D) 500 units
E) none of the above

15. Lincoln Machine Tool Company maintains an inventory poolconsisting of 10 items. Each of these items has a unique demand pattern and mayrequire a different kind of inventory management system. The annual demandpattern and the unit cost of these items are given in the following table. Classify the items in A, B, and C categoriesaccording to annual dollar usage.

Annual Usage

Unit Cost

Item Type

in thousands

in Dollars

Item 1

10

$2.50

Item 2

30

$1.25

Item 3

20

$16.00

Item 4

10

$0.75

Item 5

20

$3.00

Item 6

33

$2.50

Item 7

60

$14.25

Item 8

22

$10.00

Item 9

100

$2.75

Item 10

500

$4.25

Usingthe above data, Item 7 will beclassified as:

A) Aitem

B) Bitem

C) Citem

D) Noneof the above

16. Usingthe data of Question 15, Item 6 willbe classified as:

A) Aitem

B) Bitem

C) Citem

D) Noneof the above

17. Usingthe data of Question 15, Item 8 willbe classified as:

A) Aitem

B) Bitem

C) Citem

D) Noneof the above

18. One end item A requires threecomponent parts: B, C, and D. The bill of material indicatesthat 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 asfollows: There are 18 As, 40 Bs, 50 Csand 35 Ds in stock. If the lead time for all items is one week andthere are no scheduled receipts for any item, how many units of product Acan 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

Product Dhas gross requirements, on-hand inventory, and scheduled receipts as indicatedin the time-phased inventory status record below. Its lead time is 3 weeks.

Item D

1

2

3

4

5

6

Gross Requirements

100

300

100

300

200

50

On Hand/ Scheduled Receipts

700

Net Requirements

A

Planned Order Releases

B

19. Thevalue of entry A is:

A) 100

B) 200

C) 300

D) 700

E) Noneof the above.

20. The value of entry B is:

A) 50

B) 200

C) 250

D) 300

E) Noneof the above

21. Usethe BOM given in the Word file in the Final Examination Session under CourseContent. If the master schedule callsfor the production of 50 units of A,how many units of E are needed?

A) 50

B) 100

C) 200

D) 400

E) Noneof the above

22. Use the BOM given in the Word file in theFinal Examination Session under Course Content. If theMPS calls for the production of 50 units of item A, how many units of item Dare needed?

A) 100

B) 150

C) 300

D) 400

E) Noneof the above

23. Use the BOM given in the Word file in theFinal Examination Session under Course Content Now assume that 50 units of itemA are called for by the MPS. On-hand inventory consists of 20 units eachof items A, B, D and E. What is the net requirement for item D?

A) 40

B) 100

C) 120

D) 140

E) 160

24. Themaster production schedule for two products, A and B, is shown below. Tomanufacture item A, four (4) units of component C are required. To manufactureitem B, three (3) units of component C are required. Using this information,determine the gross requirements for component C to start week 1.

Master Production Schedule: Wk 1

Product A

30

Product B

25

A) 195

B) 220

C) 155

D) 190

E) Noneof the above

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