Question 1

When using quantity discount analysis,the key calculation is the incremental cost of each additional unit at different quantity levels.

Accepted Answer

This is because quantity discount analysis involves determining the cost savings associated with purchasing a higher quantity of a product or service. The incremental cost of each additional unit at different quantity levels is used to determine the most cost-effective quantity to purchase.

Question 2

Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.

Accepted Answer

Offering a longer-term contract with guaranteed volumes provides stability to the supplier's business and encourages them to make investments in equipment and processes that can lead to lower production costs. This allows both the buyer and the supplier to benefit from long-term cost savings and improved efficiency.

Question 3

If learning occurs at a supplier during the performance of a purchase contract and the buyer does not take that into account,then the supplier will not reap the financial benefits that result from learning.

Accepted Answer

Learning during the performance of a purchase contract often leads to increased efficiency and reduced costs for the supplier, which can translate into financial benefits even if the buyer does not explicitly account for this learning in the contract terms.

Question 4

The work force factor of the learning curve refers to the ability of the worker on the job to learn and improve through repetitive effort and increased efficiency but not the effort by management to pursue productivity gains.

Accepted Answer

The answer of The work force factor of the learning...

Question 5

The learning curve requires the accurate collection of cost and labor data,particularly during the latter stages of production.

Accepted Answer

The learning curve is most critical during the early stages of production when improvements and efficiencies are being realized, not necessarily in the latter stages.

Question 6

Because a project usually has a defined scope with agreed-upon tasks,responsibilities,and deliverables,it is often more difficult to measure project success compared with other types of work.

Accepted Answer

Project success is often easier to measure because of the defined scope, tasks, responsibilities, and deliverables, which provide clear criteria for evaluation.

Question 7

In a Gantt chart,a network is a graphical representation that shows how each individual activity relates in time and sequence to all other activities.

Accepted Answer

This statement is true. A network in a Gantt chart shows the relationships between activities in terms of their dependencies and sequencing. It helps to identify critical paths and potential delays in the project schedule.

Question 8

There is a strong correlation between effective planning and successful project outcomes.

Accepted Answer

Effective planning is a critical component of project management and is essential for achieving successful project outcomes. Planning helps to define project objectives, identify project scope, develop project schedules, allocate resources, and create a roadmap for the project team to follow. Without effective planning, projects can quickly become disorganized, chaotic, and fail to meet the desired results. Therefore, it is vital for project managers to invest sufficient time and effort in the planning phase to ensure the project's success.

Question 9

The longest path (in time)through the PERT network is the critical path.

Accepted Answer

This statement is true as the critical path represents the longest path (in time) through the PERT network.

Question 10

The advantage of a Gantt chart is that it can be easily updated to show the activities of larger,more complex projects.

Accepted Answer

Gantt charts can become cumbersome and difficult to update for larger, more complex projects due to their linear and detailed nature.

Question 11

Value analysis is traditionally applied to tangible products and as such cannot be applied to services.

Accepted Answer

While value analysis is traditionally applied to tangible products, it can also be applied to services by examining the specific inputs and outputs of the service and identifying opportunities for cost savings or value improvement. Thus, the statement is false.

Question 12

Activities without any slack are by definition on the critical path.

Accepted Answer

This is true because the critical path is the longest path through a network diagram that determines the shortest possible project duration, and any activity that doesn't have any slack is crucial to the project timeline and cannot be delayed without delaying the entire project.

Question 13

Learning-curve analysis is a key reason why many buyers consolidate purchase volumes with fewer suppliers.

Accepted Answer

Learning-curve analysis refers to the idea that a supplier will become more efficient and effective at producing and delivering goods or services as they gain more experience working with a particular customer. By consolidating purchase volumes with fewer suppliers, a buyer can help their suppliers reach this point more quickly, which can lead to cost savings, quality improvements, and other benefits.

Question 14

Activities on the critical path will have slack.

Accepted Answer

The critical path is the longest path through the project network, and activities on this path have zero slack or float. Any delay in these activities will directly impact the project's completion date. Activities with slack are not on the critical path and can be delayed without affecting the project deadline.

Question 15

A producer realizes the most dramatic learning improvements over early volumes when the effect from learning is the greatest.

Accepted Answer

This statement is true. The greatest learning improvements typically occur in the early stages of learning, as the learner is still developing basic skills and knowledge. As the learner becomes more proficient, the rate of improvement may slow down or plateau. Therefore, a producer who focuses on early volumes may see the most dramatic learning improvements.

Question 16

Each activity in PERT has three time estimates: (1)most likely,(2)pessimistic,and (3)optimistic.

Accepted Answer

This is true. PERT (Program Evaluation and Review Technique) uses three time estimates for each activity to factor in the variability and uncertainty of time required for completing the activity.

Question 17

Projects have certain characteristics that make them unique compared with other forms of work.

Accepted Answer

Projects are unique in terms of their objectives, timelines, budgets, resources, and deliverables. They are temporary in nature and involve a cross-functional team of specialists who work together to achieve a specific goal. Projects are distinct from ongoing operations and require a different set of management skills and tools.

Question 18

In collaborative relationships,buyers and suppliers can work together to mutually share the benefits of learning curves and productivity improvements.

Accepted Answer

Collaborative relationships encourage sharing of benefits, including learning curves and productivity improvements, between buyers and suppliers.

Question 19

All processes and items can benefit from or exhibit improvement from learning.

Accepted Answer

The answer of All processes and items can benefit from...

Question 20

The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.

Accepted Answer

Value analysis involves analyzing all aspects of a product, service or process to identify ways to increase its value and reduce its cost. The goal is to maintain or improve quality while lowering costs, ultimately increasing the value for the end user or customer.

Quiz 12: Purchasing and Supply Chain Analysis: Tools and Techniques