1 (1 point) Saved In the basic EPQ model, the purchase cost per unit of the item must be required in order to calculate the optimal production quantity for the item. Question 1 options: True False Question 2 (1 point) Saved For the quantity discount model, the optimal order quantity is the largest feasible EOQ quantity. Question 2 options: True False Question 3 (1 point) Saved For most business organizations, the major component of the inventory holding costs is the opportunity cost of the capital. Question 3 options: True False Question 4 (1 point) Saved For the EPQ inventory model, the maximal on-hand inventory level is larger than the production quantity in each production cycle. Question 4 options: True False Question 5 (1 point) Saved For any given activity in a project, the slack time is the difference between LF (latest finishing time) and ES (earliest starting time). Question 5 options: True False Question 6 (1 point) Saved Project scheduling is to determine the timing of all activities of the project. Question 6 options: True False Question 7 (1 point) Saved For a given project, we have a precedence network for all activities of the project. The project duration is the length of the critical path on the precedence network. Question 7 options: True False Question 8 (1 point) Saved In the basic EOQ model, the purchase cost per unit product is not necessary in order to compute the optimal order size. Question 8 options: True False Question 9 (1 point) Saved For the project crashing, in order to reduce the project duration, sometime we also need to crash a non-critical activity. Question 9 options: True False Question 10 (1 point) Saved For a given project, PERT and CPM are two different techniques to decide the project schedule. Question 10 options: True False Question 11 (1 point) Saved A retail store in St. John's NL, which sells (among other things) one kind of USB sticks, knows that the annual demand for these USB sticks is constant at 6000 units/year at the selling price (to end customers) of $10/unit. These USB sticks are obtained only from one supplier, who charges a delivery fee of $70 for each order, regardless of the number of units delivered. The inventory holding cost rate is calculated based on 6 percent annual interest rate. The supplier charges $8/unit for 0 999 units ordered, but is willing to give a discount of 5% per unit for orders between 1000 1999 units and a discount of 10% per unit for orders of 2000 units and above. Which inventory control model should be used by the store manager to manage the inventory of this kind of USB sticks? Question 11 options: EOQ Quantity Discount EPQ Question 12 (3 points) Refer to the information in Q11. In order to get the discount of 10% per unit for orders of 2000 units and above, what is the optimal order quantity? Question 12 options: 1394 1357 2000 2045 Question 13 (3 points) Refer to the information in Q11. In order to get the discount of 5% per unit for orders between 1000 1999 units, what is the optimal order quantity? Question 13 options: 1394 1357 1000 1045 Question 14 (4 points) Refer to the information in Q11. What order quantity will minimize the total inventory cost for the store from sales of the USB sticks assuming total inventory cost (Ordering + Holding + Purchase) to be the only cost? Question 14 options: 1394 1357 1000 2000 Question 15 (3 points) A large bakery buys flour in 25kg bags. The bakery uses 4,860 bags a year and this demand rate per year is a constant. For each order, the order lead time is also a constant and it is 30 days (we assume that each year is 365 days). The fixed cost for each order is $10. Annual holding cost is $5 per flour bag. What is the optimal number of bags to order? Question 15 options: 110 139 150 200 Question 16 (3 points) Refer to the information in Q15. What's the average inventory level under the decision in Q15? Question 16 options: 69.5 bags 55.2 bags 79 bags 82 bags Question 17 (3 points) Refer to the information in Q15. How many orders per year will there be under the decision in Q15? Question 17 options: 34.96 orders 15.43 orders 25 orders 43.25 orders Question 18 (4 points) Refer to the information in Q15. What is the optimal annual total cost of ordering and holding flour? Question 18 options: $460.34 $697.14 $745.23 $980.56 Question 19 (4 points) Refer to the information in Q15. If the fixed ordering cost were to increase by 50 percent per order, by what percentage would the EOQ order quantity change? Question 19 options: 11% 15% 23% 35% Question 20 (4 points) A bank branch office plans to do an office space expansion project and all the activities of this project are provided in the following table. Activity Immediate Predecessors Duration (Weeks) Available Weeks to crash Crash cost per week A - 3 0 NA B - 3 2 $600 C B 2 1 $800 D A,B 4 1 $800 E C 3 1 $900 F C 4 2 $3000 G D,F 5 3 $1200 H E,G 2 1 $3000 What is the project duration in terms of weeks? Question 20 options: 10 14 15 16 Question 21 (2 points) Refer to the information in Q20. In order to reduce the project duration by 4 weeks, which activity should be crashed at the first step of the project crashing process? Question 21 options: B C D G Question 22 (2 points) Refer to the information in Q20. In order to reduce the project duration by 4 weeks, which activity should be crashed at the second step of the project crashing process? Question 22 options: B C D G Question 23 (2 points) Refer to the information in Q20. In order to reduce the project duration by 4 weeks, which activity should be crashed at the third step of the project crashing process? Question 23 options: B C D G Question 24 (2 points) Refer to the information in Q20. In order to reduce the project duration by 4 weeks, which activity should be crashed at the 4th step of the project crashing process? Question 24 options: B C D G