Output
represent the final good or service that is produced for the consumer.
are worth more to the consumer than the total cost of the
... [Show More] inputs.
Inputs
People
Capital
Material
Energy
Brainpower
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Outputs
Services
Goods
Ethics
a sense of what is right and wrong that guide behavior.
Unethical Business Practices
Anything related to fraud, wrong doing, dishonesty, etc., even if it is to protect the company, is considered ________ _________ _______.
Sustainability
defined as the ethical issues an organization faces to balance financial performance while maintaining social responsibility standards and a responsible environmental profile.
competitive advantage
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
framework 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
strengths, weaknesses, opportunities, threats
can assist in future planning to achieve objectives.
Strengths
characteristics of the business or project that lend an advantage within the scope of the study.
Weaknesses
characteristics of a business or project that result in a disadvantage, relative to others.
opporunities
elements that the project could exploit to its advantage.
Threats
elements in the environment that could cause trouble for the business or project
Productivity
is a mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed to achieve those outputs.
Inventory
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
Raw Materials
Work-in-Process (WIP)
Finished Goods
Replacement Parts Inventory
Supplies
Transportation (Pipeline)
Raw Materials Inventory
these parts and materials are obtained from supplies and are used in the production process.
Work-in-process (WIP) inventory
these are partly finished parts, components, subassemblies, or modules.
finished goods inventory
items are ready to ship to the customer. No more work is required.
Replacement Parts Inventory
These are maintained to replace other parts in machinery or equipment as those parts wear out.
Supplies Inventory
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
the portion of inventory that is in the process of being shipped through the distribution system.
Peak Demand
occurs in response to planned events such as advertising, publicity, or promotion. Ex. release of a popular game franchise's latest version.
Seasonal Demand
as shoppers adjust their purchase velocity in line with holidays, especially Christmas.
Unexpected Demand
occurs due to a usually-unexpected event.
Chase demand
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
cushion of inventory to protect against unexpected demand. in this way, they can continue to meet customer demand without delays.
Stock-out
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
systems that companies use to track inventory. Although mostly used separately, they can also be used together.
perpetual inventory system
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
randomly monitors inventory levels. AKA fixed order interval system. Not expensive to implement or maintain.
perpetual inventory system
-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
-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
developed 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 va [Show Less]