1. Which of the following statement is TRUE about cost-time trade off in projects?
The normal cost is the amount of money it normally takes to complete an activity faster than its normal time.
The crash cost is the total additional cost associated with completing an activity in its crash time rather than in its normal time.
Crashing a project is decreasing the crash time, possibly up to its limit, the normal time.
All of the above is FALSE.
2. Which of the following statement is FALSE about inventory management?
Setup cost is independent of order size.
The primary reason for keeping inventories low is that inventory represents a temporary monetary investment.
One component of the ordering cost of inventory is shrinkage.
A backorder occurs when a customer order cannot be filled when it is placed, but is instead filled later.