Question

7. One of the options for raw materials supply being available (quantity, timing) in order to absorb supplier delivery uncertainties is __________

		safety stock
		transfer stock
		estimated stock
		none of the above

10. In projects there are usually 3 distinct project objectives, which are ________.

		cost, planning and performance
		planning, schedule and performance
		cost, schedule and performance
		none of the above

15. Basic strategy of time-series forecasting is to identify _____________ of each component on the basis of available past data.

		magnitude and form
		upper and lower levels
		average
		none the above

16. After a product has been outsourced inherent risks to build the product may take place, such as loss of ________

		knowledge
		capability
		trained personnel
		all of the above

Answer 1

Answer 7: a. Safety stock

Safety stock is the stock that is kept safe and secured by the company to take care of any supplier delivery uncertainties. These can be delay in the delivery of raw material from supplier due to various reasons. So to keep running the operations and processes of the organisation, safety stock is very necessary.

Answer 10: c. Cost, schedule and performance

Cost, schedule and performance are the 3 distinct project objectives. The objective is to complete the project on scheduled time, at low cost and with high performance.

Answer 15: b. Upper and lower levels

Using time series forecasting we can see the previous trends i.e. the variability in demand that ranges from upper limit to lower limit levels, which helps in deciding future demands.

Answer 16. d. All of the above

After a product has been outsourced, there are inherent risks to build the product, due to the loss of knowledge, capability and trained personnel.

There is a lack/loss of knowledge, capability and trained personnel for the product that has been outsourced which makes it difficult for the organisation to build the product.