The Next Three Questions Relate to the Following Scenario: Erica

question 11

Multiple Choice

The next three questions relate to the following scenario: Erica is planning a large surprise party for her best friend. She has developed the plan below which includes estimates of the time in hours) and cost necessary to perform each of the activities required.
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Activity } & \text { Predeces sor } & \begin{array} { c } \text { Normal } \\\text { Time } \\\text { (hrs) }\end{array} & \begin{array} { c } \text { Crash } \\\text { Time } \\\text { (hrs) }\end{array} & \begin{array} { c } \text { Norm al } \\\text { Cost }\end{array} & \begin{array} { c } \text { Crash } \\\text { Cost }\end{array} \\\hline \text { A. Create Guest List } & - - & 8 & 4 & \$ 200 & \$ 310 \\\hline \text { B. Send Invitations } & \text { A } & 2 & 1 & \$ 125 & \$ 150 \\\hline \text { C. Plan Decorations } & \text { A } & 8 & 6 & \$ 300 & \$ 370 \\\hline \text { D. Plan Menu } & \text { A } & 3 & 2 & \$ 150 & \$ 210 \\\hline \text { E. Shop } & \text { D } & 4 & 2 & \$ 475 & \$ 550 \\\hline \text { F. Prepare Food } & \text { E } & 5 & 3 & \$ 225 & \$ 475 \\\hline\end{array}$$

-Based on critical chain concepts, which of the following is true of a resource buffer?

• A) A resource buffer involves information sharing between sequentially-linked tasks on the critical chain.
• B) A resource buffer collects time at the end of the project.
• C) A resource buffer specifies a minimum amount of free float to protect the critical chain from the effects of potential delays in non-critical chain activities.
• D) A resource buffer adds extra human or financial resources to the critical chain to account for potential uncertainties in task times.
• E) A and B only.

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Definitions:

Economic Efficiency

A situation in which resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's based on their positive experience with that brand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.