What is vendor managed inventory (VMI)?
YOU ANSWERED: CONFIDENT
CORRECT ANSWER
(D) A practice in which firms contract with the suppliers to ship them inventory as they need it

Identify the true statement about primary activities in a firm's value chain.
CORRECT ANSWER
(D) Primary activities include manufacturing and transportation of finished products.
EXPLANATION
Value chains include both primary and secondary activities. Primary activities are actions that are directly involved in creating and distributing goods and services. These activities can include the procurement of raw materials, logistics, manufacturing, and transportation of those products.

Which of the following is an example of a secondary activity in a firm's value chain?
CORRECT ANSWER
(B) Firm infrastructure
EXPLANATION
Firm infrastructure is an example of a secondary activity in a firm's value chain. It refers to how the firm is organized and led by executives. Secondary activities are not directly involved in the evolution of a product but instead provide important underlying support for primary activities.

In which situation would a cost plus contract most frequently be utilized?
CORRECT ANSWER
(B) The costs of the work are not well known.
EXPLANATION
Cost reimbursable contracts are also known as cost plus contracts. When the costs of the work are not well known, a cost reimbursable contract reduces the amount of money the bidders place in the bid to account for the risk associated with potential increases in costs. The project uses a cost reimbursable contract to pay the contractor for allowable expenses related to performing the work.

1. Project Scope
Description of the scope
Product acceptance criteria
Project deliverables
Project exclusions
Project constraints
Project assumptions

2. Project Schedule and Time Management
	work breakdown structure (WBS)
3. Project Costs
	The conceptual estimate (also known as the ballpark estimate) 
	rough order of magnitude (ROM), which is a cost estimate based on partial knowledge
4. Project Quality
5. Project Team: Human Resources and Communications
6. Communications
	 virtual teams
7. Project Risk 
8. Project Procurement
	Commodities 
	 Vendors (companies that design goods or services to meet specified needs)

Knowledge Area	Description	Examples
Integration Management	Processes and activities that integrate project management elements	
	-Developing project charter
	-Developing preliminary project scope statement
	-Monitoring/controlling project work

Scope Management	Processes used to make sure project work matches project scope	
	-Planning and defining scope
	-Verifying scope
	-Controlling scope

Time Management	Processes that ensure project is completed in a timely manner	
	-Defining project activities
	-Sequencing activities; estimating resource requirements
	-Estimating activity duration

Cost Management	Processes that ensure project is completed within the planned budget	
	-Planning and estimating costs
	-Budgeting
	-Controlling costs

Quality Management	Processes that ensure project will meet quality objectives	
	-Quality planning
	-Quality assurance
	-Quality control

Human Resources Management	Processes to organize and manage the project team	
	-HR planning
	-Selecting and developing project team
	-Managing project team

Communications Management	Processes for the collection, dissemination and disposal of project information	
	-Communication planning
	-Distributing information
	-Reporting performance
	-Managing communication to stakeholders

Risk Management	Processes to oversee risk management	
	-Risk management planning
	-Identifying risks
	-Qualitative and quantitative risk analysis
	-Risk responsive planning
	-Risk monitoring and control

Procurement Management	Processes to acquire materials and services to support the project and manage contracts	
	-Purchase and acquisition planning
	-Contract planning
	-Requesting supplier responses
	-Selecting suppliers
	-Administering contracts; closing out contracts