When Using the Critical Ratio (CR) Priority Sequencing Rule

question 99

Multiple Choice

When using the critical ratio (CR) priority sequencing rule:

• A) a ratio of less than 1.0 implies that the job is ahead of schedule.
• B) a ratio of less than 1.0 implies the job is behind schedule.
• C) the job with the earliest due date is scheduled next.
• D) the job with the highest CR is scheduled next.

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Definitions:

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding other inputs constant.

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Profit-Maximizing

A strategy or process by which a business seeks to generate the highest possible profit from its operations.