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WGU C720 OA LATEST EXAM REAL EXAM 200 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)|AGRADE
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WGU C720 OA LATEST EXAM REAL EXAM 200 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)|AGRADE
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WGU- C720Study online at https://quizlet.com/_8v8czu
Main Objectives: how a business
Operational Stategies
achieves organizational goals & compet-
Module 1,2,12,
itive advantage through operations & in-
16 - Questions
ventory management
EOQ
EPQ
QDM
Inventory Models
(Purpose of EOQ and EPQ is to minimus
costs of ordering/
holding inventory
The costs of holding inventory; includes
costs for storage space, interest paid on
Holding/Carrying Costs borrowed money to finance the inventory,
and any losses incurred due to damage
or obsolescence.
costs for ordering/holding inventory per
order
Finished goods
*Demand is known
*cost per unit not dependent on quantity
* Entire order delivered at once
when holding goes up, ordering goes
down & vice-versa
Economic Order Quantity (EOQ)
EOQ = intersection point where total an-
nual variable costs for holding and order-
ing inventory coincide.
, WGU- C720
Study online at https://quizlet.com/_8v8czu
A model that helps companies control
the cost of ordering, receiving, and hold-
ing inventory; this model allows for in-
complete inventory to arrive, thus prov-
ing useful for businesses that produce
Economic Production Quantity (EPQ)
their own parts; also known as Produc-
tion Order Quantity. RAW Materials
*Inventory is arriving into storage and
sent out into a production process*
A discount offered in price for ordering
above a specified amount
Quantity discount Model (QDM)/ Trans-
portation discounts
discount offered on shipping costs for
ordering above a specified amount
When 2+ companies partner and divides
Revenue Sharing the profits received based on an agree-
ment between all parties involved.
When a company stores, or pays another
Reserve Capacity company to store, excess inventory to be
used for unexpected demand
Organizations must have:
a. Strategy development
b. product development
c. system development to produce ser-
Key Processes
vices and goods
d. order fulfillment
to leverage impact
Market (Demand),
Primary Constraints in a System Process (throughput)
Product (Supply)
, WGU- C720
Study online at https://quizlet.com/_8v8czu
Inventory
1. Raw materials - Parts, materials from
suppliers
2. WIP - partly finished parts, compo-
nents, subassemblies or modules
3. Finished goods - Goods ready to ship
to the customer
4. Replacement parts Inventory - for ma-
chinery or equipment as those parts
wear out.
5. Supplies - things to support the pro-
duction process but not the actual prod-
Types of Inventory/Demand uct
6. Transportation (pipeline) - shipped
through distribution system
Vender Managed Inventory (VMI)
Available-to-Promise
Demand
1. Independent/Dependent
2. Dependent
3. Seasonal
4. Peak
5. Chase
6. Uneven/ Unexpected
When the vendor/supplier coordinates its
own inventory replenishment by receiv-
ing daily point-of-sale (POS) data from
retail stores.
Vender Managed Inventory (VMI)
Thus reducing costs and improving de-
livery performance between the supplier
and the retailer. -
Inventory that has not yet been sold.
Used to determine whether new orders
Available-to-promise can be accepted within given time peri-
od.
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