Question 1

Given the following information regarding a project concerning an initial public offering (IPO) project:

Activity	Description	Expected Time (weeks)	Immediate Predecessors
A	Check feasibility	3	None
B	Determine funding	1	None
C	Find possible banks	3	A
D	Select two possible banks	4	A
E	Interview two banks	4	B
F	Analyze funding costs	5	B
G	What chance of success?	2	C, E
H	Sign contract	3	F
I	End Project	0	D, G, H

1. Use Microsoft Word drawing tools to draw the network diagram for the project. Note: Copy and paste the node (circle) given below to duplicate nodes. Type the activity symbol and time inside the node (circle). Go to insert/shapes and select arrow. Use the arrow to connect nodes as per the precedence relationships.

1. Identify all paths from beginning to finish nodes. Determine the critical path. Note: Show all steps and calculations.

1. Identify the critical activities.

1. Determine the project duration.

Question 2

ABC company begins a review of ordering policies of its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item:

Monthly Demand (d) = 64 units per month

Ordering cost (S) = $50/order

Holding cost (H) = $13/unit/year

Assume 12 months in a year.

Calculate the following:

1. item's EOQ.
2. annual holding cost
3. annual holding cost
4. the total annual inventory cost
5. Compare the cost of the optimal policy with the current policy with Q = 150. How much cost would be saved by switching to the optimal ordering policy? Show the approach

Question 3

1. INO'S company uses a continuous review system (Q system). One of the company's items has the following characteristics:
2. D = 20 units/month (assume 12 months per year)
3. S = $56/order
4. H = $8/unit/year
5. L= 2 Months (constant)
6. Standard deviation in weekly demand = 6 units
7. Cycle-service level = 95%
8. What is the EOQ for this item?
9. What is the desired safety stock?
10. What is the desired reorder point R?

Question 4(Multiple choice questions)

1. A company begins a review of ordering policies of its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item.

Weekly demand (D)= 74 units per week

Ordering Cost (S) = $50/order

Holding Cost (H) = $12/unit/year

Weeks = 52 in a year

The Total Inventory Cost of the ordering policy is ............. (Choose from the following)

	EOQ = 179 / OC = 1074/ HC= 1074/ TC = 2148
	EOQ = 3900 /OC= 1089 / HC = 1074 /TC = 2163 EOQ = 160 / OC = 1040 / HC = 1040 / TC = 2080
	EOQ = 167 / OC = 999 / HC = 999 / TC = 1998 None of the above

1. The three dimensions of project performance are
   1. Time, Budget (cost), Outcome (scope)
   2. Tradeoffs, budget and outcome
   3. Time budget and tradeoffs
   4. None of the above.

1. Project Management processes include the following stages: defining (Initial), planning, executing, monitoring and control and closing

True False

1. Critical Path is the sequence of activities between a project's start and finish that takes the shortest time to complete.

True False

1. Work Breakdown Structures (WBS) is
   1. a non-hierarchical outline that defines the deliverable and work elements that are not involved in a project
   2. a non-hierarchical outline that defines the deliverable and work elements involved in a project
   3. a hierarchical outline that defines the deliverable and work elements involved in a project
   4. a hierarchical outline that defines the deliverable and work elements that are not involved in a project

Question 5

1. What is Total Quality Management?

1. Explain briefly with examples, various costs of Quality