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Question: Multiple Choice 1 (A). Using the following information about material volume shipped from a plant…

by | Nov 30, 2023 | Posted Questions



Multiple Choice

1

(A). Using the following information about material volume
shipped from a plant to four retail outlets, which of the following
is a TRUE statement about the center of gravity for the best
location of the plant?

Retail Outlet

Location Coordinates X, Y

Material Movement

1

9, 6  

1,500

2

12, 15

2,100

3

  7, 10

1,900

4

  7, 20

1,200

a.

The x-axis is more than 10.0, and the y-axis is less than
10.0.

b.

The x-axis and the y-axis are less than 10.0.

c.

The x-axis and the y-axis are more than 10.0.

d.

The x-axis is less than 10.0, and the y-axis is more than
10.0.

(B) A manufacturer is considering some expansion alternatives.
One is to increase the capacity at their current location. A second
set of alternatives is to build a new plant at one of two possible
locations. The projected operating costs have been estimated as
follows:

Expand at Current

Cost Category

Location

Location A

Location B

Fixed

$164,000

$225,000

$175,000

Direct labor per unit

$32.5

$30

$33

Direct material per unit

$16

$17

$15.50

Overhead cost per unit

$2.90

2.40

$2.50

Transportation cost per 100 units

$125

$100

$110

If the forecast of additional demand for the next year is 30,000
units, which alternative should be selected to minimize costs?

a.

Expand at current location

b.

Location A

c.

Location B

d.

None of the alternatives are relevant

(C) Regarding project management, which of the following is NOT
relevant for time/cost trade-offs?

a.

Crash time is less than normal time.

b.

Crashing priority is based on the amount of uncertainty in
activity times.

c.

The relationship between time and cost is proportional and
assumed to be linear.

d.

Some activities cannot be crashed.

(D) Tom is assigned his first project. If things go well, he
should get promoted.  The CEO is aware of this project,
so Tom has a chance for high visibility. His first task is to
define the work break down structure by interviewing project
activity managers, and the firm’s friendly, yet boring accountants,
to get “good estimates” of project activity times and costs.

For Activity Z, the crash cost per week is _____, given the
following data: normal time = 5 weeks, crash time = 2 weeks, normal
cost = $7,560, and crash cost = $17,365.

a.

less than or equal to $1,000 per week

b.

more than $2,500 but less than or equal to $3,000

c.

more than $3,000 but less than or equal to $3,500

d.

more than $1,000 but less than or equal to $2,500

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