Answer 1:
With the following material requirements and availability of materials the maximum amount of revenue that the Garment manufacturing company can earn is when the sales mix will be as per option (d). Thus, option (d) is correct with 375 pants and 250 jackets.
Answer 2:
The critical path for the project is BEHI hence, option (a) is the correct option. The expected time to complete is 20 days in this path.
Answer 3:
In case a PERT project is likely to be completed in 45 +/- 10 weeks then the probability of the project to likely complete on or before 40th week is 17%. Thus, option (a) is the correct option. This is because the possibility of the project to complete in 35 weeks is 1/3rd (45 weeks -10 weeks) along with similar probability for the project to be completed in 45 weeks and 55 weeks (45 +10 weeks). Hence, with 1/3 multiplying with 0.50 i.e. the probability of the project to be completed between 35 to 40 weeks the probability of the project to be completed on or before 40th weke is (1/3 x 0.50) = 17%.
Answer 4:
In this case option d is the correct option, i.e. the expected completion time is 17 weeks and standard deviation is 4 weeks. Hence, option (d) is the correct answer to the question.
Answer 5:
Option (a) is the correct option as activity requires 10 days. Hence, option (a) is the correct option.
Answer 6:
With 90% learning curve the 12th unit of X235 will be produced by the work in 51.41 minutes thus, option (a) is the correct answer. The 12th unit will be produced in 51 minutes.
Answer 7:
The cost under different technology to produce 12,000 units per annum are calculated below.
| Technology | Fixed Cost in million | Unit Cost | Fixed cost | Variable costs | Total costs ($) |
| T-1 | $ 1.30 | $ 100.00 | 1300000 | 1200000 | 2500000 |
| T-2 | $ 1.50 | $ 85.00 | 1500000 | 1020000 | 2520000 |
| T-3 | $ 1.75 | $ 60.00 | 1750000 | 720000 | 2470000 |
| T-4 | $ 2.00 | $ 50.00 | 2000000 | 600000 | 2600000 |
| T-5 | $ 2.50 | $ 40.00 | 2500000 | 480000 | 2980000 |
| T-6 | $ 4.00 | $ 15.00 | 4000000 | 180000 | 4180000 |
Thus, the organization should use T-3 technology to reduce the overall cost of production. The cost of production will be lowest if the organization uses T-3 technology hence, the organization should use T-3 technology. Hence, option (a) is correct, i.e. TC3 is the correct option.
Answer 8:
Additional number of units to be sold to earn NOI of $75,000 is 1,670 units as can be seen from the following calculations.
| Selling price per unit | 40 |
| Less: Manufcaturing cost per unit | 25 |
| Contribution per unit | 15 |
| Number of units sold | 20000 |
| Contribution | 300000 |
| LessL Fixed costs | 250000 |
| Net operating income | 50000 |
| Number of units to be sold to earn $75000 | |
| Contribution per unit | 15 |
| Fixed cost | 250000 |
| Add: Desirable NOI | 75000 |
| 325000 | |
| Number of units to be sold | 21666.67 |
| Less: Already sold | 20000 |
| Additional number of units to be sold | 1666.667 |
| Additional number of units to be sold (rounded off to next 10) | 1670 |
Hence, option (d) is the correct answer.
Answer 9:
In case 80,000 units the cost to make as well as cost to purchase these from outside, i.e. outsource would be same with $9,000,000. Hence, option (d) is the correct option.
Answer 10:
In such case the NOI would be $7,0725,500 as against the current NOI of $5,000,000 thus, the increase in NOI is expected to be $2,072,5000. This is an increase of 41.45% from $5,000,000. Hence, the correct answer is option (f) with 41%.
Answer 11:
Barbecue grill is not an input in barbecuing burger rather it is an equipment needed in barbecuing all others are inputs used in barbecuing of burger hence, option (a) is the correct option.
Answer 12:
Fostering of continuous improvement is the meaning of the Japanese word Kaizen hence, option (a) is the correct answer.
Answer 13:
Multiple R is 0.69 meaning there is no meaningful relationship between SAT and GPA hence, option (a) is the correct option though it contains multiple R as 0.70. Hence, option (a) is correct.
Answer 14:
In 3 sigma acceptable number of defects is 66,807 per million which is not present any of the options hence, the highest amongst these options is 2700 defects in option (e) thus, the correct answer is option (e).
Answer 15:
Option (a) is the correct option, i.e. binder should order when there are 1500 binders left in stock. Hence, option (a) is the correct option.
Answer 16:
Activity F should be crashed by a week to reduce the project duration by 1 week hence, option (b) is the correct option.
Answer 17:
Option (c) is the correct option as PERT deal with activities which are not predictable and CPM deals with activities which are predictable. Thus, option (c) is the right answer.
Answer 18:
Option (d) is the correct option as X-bar chart determines the Shift in the Process Mean and R-bar chart determines the Spread of the Process Dispersion hence, option (d) is the right answer.
Answer 19:
Option (d) is the correct option as all other options have negative EMV hence, with EMV $0 it is best to choose choice 4. Hence, option (d) is the correct option.
Answer 20:
Option (e) is the correct option as the reorder point or level is when there are 500 (5 x 100) units of X-315 left in the stock hence, option (e) is the correct option.
