. ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED
Operations and Supply Chain Management -
C720 OA Prep Guide 100% Verified.
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
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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.
2|Page
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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)
3|Page
Operations and Supply Chain Management -
C720 OA Prep Guide 100% Verified.
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
1|Page
, . ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED
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.
2|Page
, . ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED
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)
3|Page
