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C720 Questions and Correct Answers
Ethics Ans: Sense of what is right and wrong that guide behavior
Sustainability Ans: Balance financial performance while
maintaining social responsibility standards and a responsible
environmental profile
Competitive Advantage Ans: Capability that customer's value
gives an organization an edge against competition
SWOT Analysis Ans: Strengths, Weaknesses, Opportunities and
Threats
Strengths Ans: Characteristics of a business or project that lend
an advantage within the scope of the study
Weaknesses Ans: Characteristics of a business or project result in
a disadvantage, relative to others
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Opportunities Ans: Elements that a project could exploit
advantages
Threats Ans: Elements in the competitive environment could
create trouble for the business or project
Inventory Ans: Goods available for sale and raw materials used to
produce goods
Raw Materials Ans: Parts and materials obtained from suppliers
and used in the production process
Work-in-Process WIP Ans: Partly finished parts, components,
subassemblies or modules
Finished Goods Ans: Items ready to ship to customers
Replacement Parts Inventory Ans: Maintained to replace other
parts in machinery or equipment as those parts wear out
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Supplies Ans: Parts or materials used to support the production
process but not usually a component of the product
Transportation (Pipeline) Ans: Portion of inventory that is in the
process of being shipped through the distribution system
Peak Demand Ans: Occurs in response to planned events such as
advertising, publicity or promotion
Seasonal Demand Ans: Shoppers adjusting purchase velocity in
line with holidays
Unexpected Demand Ans: Occurs due to a usually-unexpected
event
Chase Demand Ans: Occurs when a company has to adjust
production by rates to match demand varying the workforce and
using overtime
Perpetual and Periodic Inventory Systems Ans: Systems that
companies use to track inventory
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Perpetual Inventory System Ans: Continuously monitors
inventory levels and is also called continuous review system
Periodic Inventory System Ans: Randomly monitors inventory
levels and is so called the fixed order interval system
ABC Analysis Ans: By multiplying the dollar value of each item by
its annual usage, a dollar value can be obtained
Pareto Priniciple Ans: Only 20% of all the items account for 80%
of the total dollar usage, while the remaining items frequently
account for only 20% of the dollar usage
Quality Discount Model Ans: Discount offered in price for
ordering above a specified amount
Transportation Discount Ans: Discount offered on shipping cost
for ordering above a specified amount
© 2025 All rights reserved
C720 Questions and Correct Answers
Ethics Ans: Sense of what is right and wrong that guide behavior
Sustainability Ans: Balance financial performance while
maintaining social responsibility standards and a responsible
environmental profile
Competitive Advantage Ans: Capability that customer's value
gives an organization an edge against competition
SWOT Analysis Ans: Strengths, Weaknesses, Opportunities and
Threats
Strengths Ans: Characteristics of a business or project that lend
an advantage within the scope of the study
Weaknesses Ans: Characteristics of a business or project result in
a disadvantage, relative to others
© 2025 All rights reserved
, 2 | Page
Opportunities Ans: Elements that a project could exploit
advantages
Threats Ans: Elements in the competitive environment could
create trouble for the business or project
Inventory Ans: Goods available for sale and raw materials used to
produce goods
Raw Materials Ans: Parts and materials obtained from suppliers
and used in the production process
Work-in-Process WIP Ans: Partly finished parts, components,
subassemblies or modules
Finished Goods Ans: Items ready to ship to customers
Replacement Parts Inventory Ans: Maintained to replace other
parts in machinery or equipment as those parts wear out
© 2025 All rights reserved
, 3 | Page
Supplies Ans: Parts or materials used to support the production
process but not usually a component of the product
Transportation (Pipeline) Ans: Portion of inventory that is in the
process of being shipped through the distribution system
Peak Demand Ans: Occurs in response to planned events such as
advertising, publicity or promotion
Seasonal Demand Ans: Shoppers adjusting purchase velocity in
line with holidays
Unexpected Demand Ans: Occurs due to a usually-unexpected
event
Chase Demand Ans: Occurs when a company has to adjust
production by rates to match demand varying the workforce and
using overtime
Perpetual and Periodic Inventory Systems Ans: Systems that
companies use to track inventory
© 2025 All rights reserved
, 4 | Page
Perpetual Inventory System Ans: Continuously monitors
inventory levels and is also called continuous review system
Periodic Inventory System Ans: Randomly monitors inventory
levels and is so called the fixed order interval system
ABC Analysis Ans: By multiplying the dollar value of each item by
its annual usage, a dollar value can be obtained
Pareto Priniciple Ans: Only 20% of all the items account for 80%
of the total dollar usage, while the remaining items frequently
account for only 20% of the dollar usage
Quality Discount Model Ans: Discount offered in price for
ordering above a specified amount
Transportation Discount Ans: Discount offered on shipping cost
for ordering above a specified amount
© 2025 All rights reserved
