1. A bottleneck activity in a process is generally the activity with
- the smallest number of resources devoted to it.
- the least capacity
- no delays in front of it.
- the highest cost
2. If a company can eliminate all sources of variance in a process, then
- it will be able to operate at maximum capacity at all times.
- there will be no constraints in the process.
- continuous improvement will not be necessary.
- None of the above
2. Which of the following statements about economies of scale is not true?
- One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases
- One reason economies of scale occur is because employees become more efficient as volume increases.
- Economy of scale refers to the fact that as volume increases, total cost of production decreases.
- Economies of scale may not exist at all levels of production.
3. End item A is made by assembling two parts of B and four parts of C. Part C is made from three parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C?
- 70 units
- 200 units
- 125 units
- 100 units
5. The positioning and replenishment of finished goods inventories at the retail level can be determined using
6. Benefits of ERP systems include all of the following except
- easy implementation
- fewer data entry errors
- more informed business decisions
- improved customer service