Question

48. CPM uses constant time, rather than time-cost trade-off.

True

False

56. In the weighted moving average time series only a portion of the demand series is needed.

True

False

57. Six Sigma is more important to a firm because it requires full-time project leaders; whereas Lean systems only rely on part-time project leaders.

True

False

58. Cost of capital is a carrying cost that entails obsolescence costs assigned to items with a high risk of becoming obsolete.

True

False

Answer 1

48) False

The CPM (Critical path method) has the way to use time-cost trade off wherein project duration can be reduced by paying higher cost in form of crash cost. For each activity, there is normal cost, crash cost, normal time and crash time for calculation of minimum possible project time

56) True

Let’s say there is an actual data for 11 months and 12th month forecast needs to be done. In case of weighted average problem like 0.5, 0.3, 0.2 weights are given from latest month onward, the actual data of only 9th month, 10th month and 11th month is required for computing forecast of 12th month

57) False

Six Sigma are projects which requires part time project leaders. It may last for few months. But, Lean systems requires full time project leaders as it is a continuous improvement aspect of an organization

58) True

The cost of capital involves the carrying cost which is taken as a percent of actual cost or may be computed basis depreciation. However, it also entails obsolescence cost for items which are under high risk of becoming obsolete. Example: Electronic goods

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