The answer must be clearly indicated at the end of each question. Section A: Select the right answer. (1 point each) 1. If multiple activities are delayed simultaneously by extent of the slack time, it would a. Definitely delay the project b. May delay the project – will have to be determined c. Will definitely not delay the project 2. By adding safety stock a. Inventory carrying cost is increased b. Probability of stock out is reduced c. Higher customer service level is achieved d. All of the above 3. The earliest start time for an activity is equal to the a. Smallest earliest finish time of all of its immediate predecessors. b. Largest earliest finish time of all of its immediate predecessors. c. Smallest late start time of any of its immediate predecessors. d. Largest late finish time of all of its immediate predecessors. 4. A project has three paths. A-B-C has a length of 25 days. A-D-C has a length of 15 days. Finally C has a length of 20 days. Which one of the following statements is TRUE? a) A-D-C is the critical path. b) A-B-C has the most slack. c) The expected duration of this project is 25 days. d) The expected duration of this project is 25 + 15+ 20-60 days. 5. Activity slack is defined as: a) latest start time minus earliest start time. b) earliest start time minus latest start time. c) earliest finish time minus latest finish time. d) latest finish time minus earliest start time. 6. Setup cost is independent of order size. a) True b) False 7. Reducing setup costs will increase the pressure to keep larger inventories. a) True b) False
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