WGU C720 Complete OA Prep Guide

Inputs People, capital, material, money Outputs Services and goods Sustainability Defined broadly in operations and supply chain management as the ethical issues an organization faces to balance financial performance while maintaining social responsibility standards and a responsible environmental profile. VIRAL Acronym - A framework for competitive advantage. Viral, Inimitable, Rare, Aptitude, Lifespan. The advantage must provide Value to consumers; it should be Inimitable (not easily imitated), Rare, and an organization must have the Aptitude (capability) and Lifespan (sustainability) to earn appropriate returns on the advantage. Productivity A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed to achieve those outputs. 6 Types of Inventory o Raw Materials o Work In Progress o Finished Goods o Replacement Parts Inventory o Supplies o TransportationRaw Materials These parts and materials are obtained from suppliers and are used in the production process. Work-in-process (WIP) These are partly finished parts, components, sub-assemblies, or modules. Finished Goods Items are ready to ship to the customer. No more work is required. Replacement parts inventory These are maintained to replace other parts in machinery or equipment as those parts wear out Supplies 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): The portion of inventory that is in the process of being shipped through the distribution system. 4 Types of Demand o Peak o Seasonal o Unexpected o Chase Peak Demand Demand which occurs in response to planned events such as advertising, publicity or promotion. The release of a popular game franchise's latest version often causes peak demand for a few days or weeks. Seasonal Demand Demand as shoppers adjust their purchase velocity in line with holidays, especially Christmas. But Halloween, Thanksgiving and even St. Patrick's Day also create seasonal demand for certain kinds of merchandise.Unexpected Demand Demand which occurs due to a usually-unexpected event. For example, an underdog school may upset a favorite during the NCAA's basketball tournament, causing a run on their merchandise. Chase Demand Demand that 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. And they may choose to provide overtime by asking workers to stay on the job beyond their normally scheduled time. Safety Stock A cushion of inventory to protect against unexpected demand. In this way, they can continue to meet customer demand without delays. Stock Out Occurs when inventory is depleted. Perpetual Inventory System Continuously monitors inventory levels and is also called a continuous review system. Requires human input (i.e. cashier) and the ordering of more inventory is triggered by reorder point. o Requires an exact inventory balance at all times o Best for big businesses, retail stores, or banks o High value and high volume o Expensive to implement and maintain Periodic Inventory System Randomly monitors inventory levels and is also called the fixed order interval system. o Requires a physical count periodically o Used when a supplier will only deliver at specific time intervals o Low value and volume