The Purpose of a PERT Network Is

question 268

Multiple Choice

The purpose of a PERT network is

• A) to monitor the quality of a product for compliance with ISO 9001 standards.
• B) to monitor the progress of a multi-step project during its development.
• C) to connect all firms that are ISO 9001 certified so that they can partner with each other on future projects.
• D) to be used as a decision-making tool when evaluating the best facility locations and layouts.

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Moral Hazard

The situation where one party in an agreement is tempted to take undue risks because the negative consequences of the risk will be suffered by the other party.

Efficient Level

The optimal point of production or operation where costs are minimized and productivity or utility is maximized.

Warranty

A guarantee, usually made by a seller to a buyer, promising to repair or replace a product if necessary within a specified period.