WGU C215 Operations Management
100% Correct and Comprehensive
Exam Study Guide | Latest 2024
ABC classification
A method for determining level of control and frequency of review
of inventory items.
continuous review system
Updates inventory balances after each inventory transaction.
keeps track of an inventory item 24/7.
the EOQ model is often used.
periodic review system
reviews the inventory level of the item at regular intervals (daily,
weekly, monthly) to determine whether a replenishment order is
needed.
two-bin system
One bin with enough stock to satisfy demand during
replenishment time is kept in the storeroom; the other bin is
placed on the manufacturing floor.
Periodic counting
,A physical inventory is taken periodically, usually annually. satisfy
auditors.
Cycle counting
is a method of counting inventory throughout the year. This is a
series of mini-physical inventories done daily of some
prespecified items.
Vendor-managed inventory (VMI)
requires the vendor to maintain an inventory of certain items at
the customer's facility. The supplier still owns the inventory until
the customer actually withdraws it for use.
Percentage of Line Items Shipped on Schedule
recognizes that not all orders are equal but fails to take into
account the dollar value of orders.
Percentage of Dollar Volume Shipped on Schedule
recognizes the differences in orders in terms of both line items
and dollar value.
Idle Time Due to Material and Component Shortages
This is an absolute measure of the manufacturing or service time
lost because material or parts are not available to the workforce.
,back-order
Delaying delivery to the customer until the item becomes
available.
lost sale
Occurs when the customer is not willing to wait for delivery.
stock-keeping unit (SKU)
An SKU is a specific item at a particular geographic location. For
example, a pair of jeans, size , in inventory at the plant and also
eight different warehouses, represents nine different SKUs
Lot-for-lot
is ordering exactly what you need. You adjust the ordering
quantity to your ordering needs, which ensures that you will not
have leftover inventory.
Fixed-order quantity
specifies the number of units to order each time you place an
order for a certain SKU or item.
Min-max system
involves placing an order when the on-hand inventory falls below
a predetermined minimum level.
, Order n periods
means that you determine the order quantity by summing your
company's requirements for the next n periods.
economic order quantity model (EOQ)
is a continuous review system, used to keep track of the inventory
on hand each time stock is added or withdrawn.
economic production quantity (EPQ) model.
A model that allows for incremental product delivery.
Order-cycle service level
The probability that demand during lead time will not exceed on-
hand inventory.
target inventory level (TI),
Used in determining order quantity in the periodic review system.
Target inventory less on-hand inventory equals order quantity.
single-period model
Designed for use with products that are highly perishable.
Example, Christmas tree, newspaper
objective is to balance the gross profit generated by the sale of a
unit with the cost incurred for each unit that is not sold until after
the primary selling period has elapsed.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseMeg. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
