EXERCISES CHAPTER 4 & 5

1/ According to the PERT CHART below that describes the different activities related
to a project and the planned time for each activity in terms of weeks
3-1 Identify the critical path and explain what it is (2 marks)
3-2 If there is a delay of 2 weeks in the activity G, explain the consequence on the
entire project. (1 mark)

2/ Interpret the gantt Chart below and explain its utility. (2 marks)
3/ As a procurement manager, you have identified 5 potential suppliers to buy an
equipment and have gathered these information:

Provider Price Quality Warrantee After sale Delivery Payment

service time terms
MBT 150 000 3nd 3 years Very good 1 week 6 months
Ben Farhat 140 000 4th 2 years good 3 days 90 days
& Son
ROSE Cie 147 000 2nd 30 months bad 1 month At the
delivery
GLOBAL 130 000 5th 1 year Medium 2 weeks 1 month
NOMADIS 170 000 1st 3 years Excellent 3 months 3 months

The weighting coefficients are as follows:

Criteria Coefficient
Price 3
Quality 6
Delivery time 2
Warrantee 4
Payment terms 1
After sale service 5

Which provider will you recommend to the CEO ? Justify your answer. (Use a five
point scale to determine the grades related to each provider. (4 marks)

4/ Indicate the right answer(s)

1/ Services
a- Are produced and consumed at the same time
b- Can be inventoried
c- Are intangible
2/ The location planning depends on
a- Costs
b- Political environment
c- Availability of workforce
3/ Indicate which activity is not related to the Gantt chart
a- List all activities to be performed
b- Estimate the cost of each activity
c- Record the progress on the chart
4/ Outsourcing is:
a- Selling abroad
b- Using different sources of raw materials
c- Paying suppliers and distributors to perform certain business processes or to provide needed
materials or services
5/ Which one of these objectives is not an operations objective?
 a- Time
b- Cost
c- Quality
6/ Which one of the following would not generally be considered as an aspect of operations
management?
a- Work methods
b- Maintain quality
c- Secure financial resources
d- Manage inventories
7/ Logistics managers
a- Organize the storage and the distribution of goods
b- Negotiate favorable payment terms
c- Ensure that the right products are delivered to the right location on time and at a good cost

8/ The main objectives of procurement are

a- Avoid the shortage of stocks
b- Avoid the over storage
c- Identify suitable suppliers
9/ which of these steps is not included in the purchase procedure
a- Communication of needs
b- Ordering
c- Evaluation and selection of suppliers
10/The stock is composed of:
a- Raw materials
b- Supplies
c- Information
d- Packaging
11/ Operations control requires managers to:
a- Compare results with detailed plans and schedules
b- Take corrective actions when needed
c- Ensure that production decisions are being implemented
12/ Productivity is a measure of the effective use of resources, usually expressed as the ratio of
output to input
a-  True
b- False