A Company Could Add $10,000 Per Week in Revenues If

question 64

Multiple Choice

A company could add $10,000 per week in revenues if the project depicted in Table 7.10 could be shortened.
Table 7.10

Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options) ?

• A) less than or equal to $4,000
• B) greater than $4,000 but less than or equal to $8,000
• C) greater than $8,000 but less than or equal to $12,000
• D) greater than $12,000

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Definitions:

Enterprise Resource Planning

Integrated management software systems that are used to collect, store, manage, and interpret data from various business activities, facilitating information sharing across the organization.

SCM

Supply Chain Management, the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Just-In-Time Production

A manufacturing methodology aimed at reducing inventory costs by producing goods only as they are needed in the production process or by the customer.

Inventory Replenishment

The process of adding stock to inventory to maintain desired levels and fulfill customer orders without delay.