Operations and Supply Chain
Management - C720 OA Prep Guide
Output - ANSWER-represent the final good or service that is produced for the
consumer.
are worth more to the consumer than the total cost of the inputs.
Inputs - ANSWER-People
Capital
Material
Energy
Outputs - ANSWER-Services
Goods
Ethics - ANSWER-a sense of what is right and wrong that guide behavior.
Unethical Business Practices - ANSWER-Anything related to fraud, wrong doing,
dishonesty, etc., even if it is to protect the company, is considered ________
_________ _______.
Sustainability - ANSWER-defined as the ethical issues an organization faces to balance
financial performance while maintaining social responsibility standards and a
responsible environmental profile.
competitive advantage - ANSWER-a capability that customers value, such as short
delivery lead-time or high product quality that gives an organization an edge against its
competition.
VIRAL uses as a framework.
VIRAL - ANSWER-framework for competitive advantage.
Advantage must provide:
Value to consumers
Inimitable - not easily imitated
Rare
Aptitude - capability
Lifespan - sustainability to earn appropriate returns on the advantage.
SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats
can assist in future planning to achieve objectives.
,Strengths - ANSWER-characteristics of the business or project that lend an advantage
within the scope of the study.
Weaknesses - ANSWER-characteristics of a business or project that result in a
disadvantage, relative to others.
opporunities - ANSWER-elements that the project could exploit to its advantage.
Threats - ANSWER-elements in the environment that could cause trouble for the
business or project
Productivity - ANSWER-is a mathematical calculation; it is the ratio of the outputs
achieved divided by the inputs consumed to achieve those outputs.
Inventory - ANSWER-the term for goods available for sale and raw materials used to
produce goods available for sale.
Can help businesses meet demand and work more efficiently.
6 types of inventory - ANSWER-Raw Materials
Work-in-Process (WIP)
Finished Goods
Replacement Parts Inventory
Supplies
Transportation (Pipeline)
Raw Materials Inventory - ANSWER-these parts and materials are obtained from
supplies and are used in the production process.
Work-in-process (WIP) inventory - ANSWER-these are partly finished parts,
components, subassemblies, or modules.
finished goods inventory - ANSWER-items are ready to ship to the customer. No more
work is required.
Replacement Parts Inventory - ANSWER-These are maintained to replace other parts in
machinery or equipment as those parts wear out.
Supplies Inventory - ANSWER-Parts or materials are used to support the production
process but not usually a component of the product. These Items, such as lubricant and
cutting tools, are consumed in the production process.
Transportation (pipeline) inventory - ANSWER-the portion of inventory that is in the
process of being shipped through the distribution system.
, Peak Demand - ANSWER-occurs in response to planned events such as advertising,
publicity, or promotion. Ex. release of a popular game franchise's latest version.
Seasonal Demand - ANSWER-as shoppers adjust their purchase velocity in line with
holidays, especially Christmas.
Unexpected Demand - ANSWER-occurs due to a usually-unexpected event.
Chase demand - ANSWER-occurs when a company has to adjust production by rates
to match demand by varying the workforce and using overtime. Companies vary the
workforce by adding or reducing the number of employees on duty at any given time.
They may choose to provide overtime by asking workers to stay on the job beyond their
normally scheduled time.
Safety Stock - ANSWER-cushion of inventory to protect against unexpected demand. in
this way, they can continue to meet customer demand without delays.
Stock-out - ANSWER-occurs when inventory is depleted. An organization may
underestimate demand, experience disruptions in its supply chain or delays in
production that lead to late delivery of the product.
Perpetual and Periodic Inventory Systems - ANSWER-systems that companies use to
track inventory. Although mostly used separately, they can also be used together.
perpetual inventory system - ANSWER-Continuously monitors inventory levels. AKA
continuous review system. Requires human input (cashier) and the ordering of more
inventory is triggered by reorder point.
periodic inventory system - ANSWER-randomly monitors inventory levels. AKA fixed
order interval system. Not expensive to implement or maintain.
perpetual inventory system - ANSWER--used for inventory that requires an exact
inventory balance at all times.
-most suitable for big businesses, large retail stores, and/or banks.
-most appropriate for high value and high volume items.
-best for accurate financial statements
-expensive to implement and maintain.
periodic inventory system - ANSWER--requires physical count to know exact inventory
balances.
-used when a supplier will only deliver at specific time intervals (during open window)
-Most appropriate for low value and low value items
-most appropriate for small businesses
-inexpensive to implement and maintain.
Management - C720 OA Prep Guide
Output - ANSWER-represent the final good or service that is produced for the
consumer.
are worth more to the consumer than the total cost of the inputs.
Inputs - ANSWER-People
Capital
Material
Energy
Outputs - ANSWER-Services
Goods
Ethics - ANSWER-a sense of what is right and wrong that guide behavior.
Unethical Business Practices - ANSWER-Anything related to fraud, wrong doing,
dishonesty, etc., even if it is to protect the company, is considered ________
_________ _______.
Sustainability - ANSWER-defined as the ethical issues an organization faces to balance
financial performance while maintaining social responsibility standards and a
responsible environmental profile.
competitive advantage - ANSWER-a capability that customers value, such as short
delivery lead-time or high product quality that gives an organization an edge against its
competition.
VIRAL uses as a framework.
VIRAL - ANSWER-framework for competitive advantage.
Advantage must provide:
Value to consumers
Inimitable - not easily imitated
Rare
Aptitude - capability
Lifespan - sustainability to earn appropriate returns on the advantage.
SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats
can assist in future planning to achieve objectives.
,Strengths - ANSWER-characteristics of the business or project that lend an advantage
within the scope of the study.
Weaknesses - ANSWER-characteristics of a business or project that result in a
disadvantage, relative to others.
opporunities - ANSWER-elements that the project could exploit to its advantage.
Threats - ANSWER-elements in the environment that could cause trouble for the
business or project
Productivity - ANSWER-is a mathematical calculation; it is the ratio of the outputs
achieved divided by the inputs consumed to achieve those outputs.
Inventory - ANSWER-the term for goods available for sale and raw materials used to
produce goods available for sale.
Can help businesses meet demand and work more efficiently.
6 types of inventory - ANSWER-Raw Materials
Work-in-Process (WIP)
Finished Goods
Replacement Parts Inventory
Supplies
Transportation (Pipeline)
Raw Materials Inventory - ANSWER-these parts and materials are obtained from
supplies and are used in the production process.
Work-in-process (WIP) inventory - ANSWER-these are partly finished parts,
components, subassemblies, or modules.
finished goods inventory - ANSWER-items are ready to ship to the customer. No more
work is required.
Replacement Parts Inventory - ANSWER-These are maintained to replace other parts in
machinery or equipment as those parts wear out.
Supplies Inventory - ANSWER-Parts or materials are used to support the production
process but not usually a component of the product. These Items, such as lubricant and
cutting tools, are consumed in the production process.
Transportation (pipeline) inventory - ANSWER-the portion of inventory that is in the
process of being shipped through the distribution system.
, Peak Demand - ANSWER-occurs in response to planned events such as advertising,
publicity, or promotion. Ex. release of a popular game franchise's latest version.
Seasonal Demand - ANSWER-as shoppers adjust their purchase velocity in line with
holidays, especially Christmas.
Unexpected Demand - ANSWER-occurs due to a usually-unexpected event.
Chase demand - ANSWER-occurs when a company has to adjust production by rates
to match demand by varying the workforce and using overtime. Companies vary the
workforce by adding or reducing the number of employees on duty at any given time.
They may choose to provide overtime by asking workers to stay on the job beyond their
normally scheduled time.
Safety Stock - ANSWER-cushion of inventory to protect against unexpected demand. in
this way, they can continue to meet customer demand without delays.
Stock-out - ANSWER-occurs when inventory is depleted. An organization may
underestimate demand, experience disruptions in its supply chain or delays in
production that lead to late delivery of the product.
Perpetual and Periodic Inventory Systems - ANSWER-systems that companies use to
track inventory. Although mostly used separately, they can also be used together.
perpetual inventory system - ANSWER-Continuously monitors inventory levels. AKA
continuous review system. Requires human input (cashier) and the ordering of more
inventory is triggered by reorder point.
periodic inventory system - ANSWER-randomly monitors inventory levels. AKA fixed
order interval system. Not expensive to implement or maintain.
perpetual inventory system - ANSWER--used for inventory that requires an exact
inventory balance at all times.
-most suitable for big businesses, large retail stores, and/or banks.
-most appropriate for high value and high volume items.
-best for accurate financial statements
-expensive to implement and maintain.
periodic inventory system - ANSWER--requires physical count to know exact inventory
balances.
-used when a supplier will only deliver at specific time intervals (during open window)
-Most appropriate for low value and low value items
-most appropriate for small businesses
-inexpensive to implement and maintain.
