Operations and Supply Chain Management - C720 OA Prep Guide Exam

Operations and Supply Chain Management - C720 OA Prep Guide Exam Output - answerrepresent 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 - answerPeople Capital Material Energy Outputs - answerServices Goods Ethics - answera sense of what is right and wrong that guide behavior. Unethical Business Practices - answerAnything related to fraud, wrong doing, dishonesty, etc., even if it is to protect the company, is considered ________ _________ _______. Sustainability - answerdefined as the ethical issues an organization faces to balance financial performance while maintaining social responsibility standards and a responsible environmental profile. competitive advantage - answera 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 - answerframework 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 - answerstrengths, weaknesses, opportunities, threats can assist in future planning to achieve objectives. Strengths - answercharacteristics of the business or project that lend an advantage within the scope of the study. Weaknesses - answercharacteristics of a business or project that result in a disadvantage, relative to others. opporunities - answerelements that the project could exploit to its advantage. Threats - answerelements in the environment that could cause trouble for the business or project Productivity - answeris a mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed to achieve those outputs. Inventory - answerthe 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 - answerRaw Materials Work-in-Process (WIP) Finished Goods Replacement Parts Inventory Supplies Transportation (Pipeline) Raw Materials Inventory - answerthese parts and materials are obtained from supplies and are used in the production process. Work-in-process (WIP) inventory - answerthese are partly finished parts, components, subassemblies, or modules. finished goods inventory - answeritems are ready to ship to the customer. No more work is required. Replacement Parts Inventory - answerThese are maintained to replace other parts in machinery or equipment as those parts wear out. Supplies Inventory - answerParts 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 - answerthe portion of inventory that is in the process of being shipped through the distribution system. Peak Demand - answeroccurs in response to planned events such as advertising, publicity, or promotion. Ex. release of a popular game franchise's latest version. Seasonal Demand - answeras shoppers adjust their purchase velocity in line with holidays, especially Christmas. Unexpected Demand - answeroccurs due to a usually-unexpected event. Chase demand - answeroccurs 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 - answercushion of inventory to protect against unexpected demand. in this way, they can continue to meet customer demand without delays. Stock-out - answeroccurs 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 - answersystems that companies use to track inventory. Although mostly used separately, they can also be used together. perpetual inventory system - answerContinuously 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 - answerrandomly 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. ABC analysis - answerdeveloped to determine which inventory items should receive the highest level of control. by multiplying the dollar value of each item by its annual usage, a dollar usage value can be obtained. Pareto Principle - answerDollar usage follows this. Frequently, 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. ABC Classification - answerbased on focusing efforts where the payoff is highest. Economic Order Quantity (EOQ) and Economic Production Quantity (EPQ) - answertwo models used to help companies control the cost of ordering, receiving, and holding inventory. EOQ (Economic Order Quantity) - answer-For inventory that doesn't require production. -when demand is constant and known. -when cost/unit does not depend on order quantity. -most appropriate for retail stores or companies that order finished goods. EPQ (economic production quantity) - answer-For inventory that will be used in production. -when incremental ordering and depletion of inventory is allowed. -also called production order quantity. -most appropriate for manufacturing and production companies. Holding Costs - answerthe costs of holding or "carrying" inventory over time.