Operations & Supply Chain Management – Inputs,
Outputs, Sustainability, VIRAL Advantage,
Productivity, Raw Materials, Work-in-Process,
Finished Goods, Replacement Parts, Supplies,
Transportation, Peak Demand, Seasonal Demand,
Unexpected Demand, Chase Demand, Safety Stock,
Stock Out, Perpetual Inventory, Periodic Inventory,
ABC Analysis, Pareto Principle, EOQ, EPQ, Quality
Function Deployment, Reliability, Responsiveness,
Assurance, Empathy, Tangibles, Lean, Agile,
Capacity Planning, Theory of Constraints, Facility
Location, Vertical Integration, Forecasting, MRP,
ERP, Just-in-Time (JIT), Kanban, Value Stream
Mapping Exam Questions Verified and Provided
with Verified A+ Graded Rationales Latest Updated
2026
Inputs
People, capital, material, money
Outputs
Services and goods
Sustainability
Defined broadly in operations and supply chain management as the ethical issues an
organization faces to balance financial performance while maintaining social responsibility
standards and a responsible environmental profile.
VIRAL
Acronym - A framework for competitive advantage.
Viral, Inimitable, Rare, Aptitude, Lifespan.
,The advantage must provide Value to consumers; it should be Inimitable (not easily imitated),
Rare, and an organization must have the Aptitude (capability) and Lifespan (sustainability) to
earn appropriate returns on the advantage.
Productivity
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
These parts and materials are obtained from suppliers and are used in the production process.
Work-in-process (WIP)
These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
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
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):
The portion of inventory that is in the process of being shipped through the distribution system.
4 Types of Demand
o Peak
o Seasonal
, o Unexpected
o Chase
Peak Demand
Demand which occurs in response to planned events such as advertising, publicity or
promotion. The release of a popular game franchise's latest version often causes peak demand
for a few days or weeks.
Seasonal Demand
Demand as shoppers adjust their purchase velocity in line with holidays, especially Christmas.
But Halloween, Thanksgiving and even St. Patrick's Day also create seasonal demand for certain
kinds of merchandise.
Unexpected Demand
Demand which occurs due to a usually-unexpected event. For example, an underdog school may
upset a favorite during the NCAA's basketball tournament, causing a run on their merchandise.
Chase Demand
Demand that 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. And they may choose to provide overtime
by asking workers to stay on the job beyond their normally scheduled time.
Safety Stock
A 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.
Perpetual Inventory System
Continuously monitors inventory levels and is also called a continuous review system. Requires
human input (i.e. cashier) and the ordering of more inventory is triggered by reorder point.
o Requires an exact inventory balance at all times
o Best for big businesses, retail stores, or banks
o High value and high volume
o Expensive to implement and maintain
Outputs, Sustainability, VIRAL Advantage,
Productivity, Raw Materials, Work-in-Process,
Finished Goods, Replacement Parts, Supplies,
Transportation, Peak Demand, Seasonal Demand,
Unexpected Demand, Chase Demand, Safety Stock,
Stock Out, Perpetual Inventory, Periodic Inventory,
ABC Analysis, Pareto Principle, EOQ, EPQ, Quality
Function Deployment, Reliability, Responsiveness,
Assurance, Empathy, Tangibles, Lean, Agile,
Capacity Planning, Theory of Constraints, Facility
Location, Vertical Integration, Forecasting, MRP,
ERP, Just-in-Time (JIT), Kanban, Value Stream
Mapping Exam Questions Verified and Provided
with Verified A+ Graded Rationales Latest Updated
2026
Inputs
People, capital, material, money
Outputs
Services and goods
Sustainability
Defined broadly in operations and supply chain management as the ethical issues an
organization faces to balance financial performance while maintaining social responsibility
standards and a responsible environmental profile.
VIRAL
Acronym - A framework for competitive advantage.
Viral, Inimitable, Rare, Aptitude, Lifespan.
,The advantage must provide Value to consumers; it should be Inimitable (not easily imitated),
Rare, and an organization must have the Aptitude (capability) and Lifespan (sustainability) to
earn appropriate returns on the advantage.
Productivity
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
These parts and materials are obtained from suppliers and are used in the production process.
Work-in-process (WIP)
These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
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
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):
The portion of inventory that is in the process of being shipped through the distribution system.
4 Types of Demand
o Peak
o Seasonal
, o Unexpected
o Chase
Peak Demand
Demand which occurs in response to planned events such as advertising, publicity or
promotion. The release of a popular game franchise's latest version often causes peak demand
for a few days or weeks.
Seasonal Demand
Demand as shoppers adjust their purchase velocity in line with holidays, especially Christmas.
But Halloween, Thanksgiving and even St. Patrick's Day also create seasonal demand for certain
kinds of merchandise.
Unexpected Demand
Demand which occurs due to a usually-unexpected event. For example, an underdog school may
upset a favorite during the NCAA's basketball tournament, causing a run on their merchandise.
Chase Demand
Demand that 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. And they may choose to provide overtime
by asking workers to stay on the job beyond their normally scheduled time.
Safety Stock
A 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.
Perpetual Inventory System
Continuously monitors inventory levels and is also called a continuous review system. Requires
human input (i.e. cashier) and the ordering of more inventory is triggered by reorder point.
o Requires an exact inventory balance at all times
o Best for big businesses, retail stores, or banks
o High value and high volume
o Expensive to implement and maintain
