Question 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

Question 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

Question 3. 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.

Question 4. 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

Question 5. The positioning and replenishment of finished goods inventories at the retail level can be determined using
MRP
CRP
DRP
RFID

Question 6. Benefits of ERP systems include all of the following except
easy implementation
fewer data entry errors
more informed business decisions
improved customer service