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CSS Business Administration Operations and Supply Chain Management Flashcards
63 question-and-answer cards covering Operations and Supply Chain Management as it is examined in CSS Business Administration. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Operations and Supply Chain Management deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is the formula for total annual inventory cost in the basic EOQ model (excluding purchase cost)?
Total Cost = (D/Q)·S + (Q/2)·H, where D/Q is number of orders, S is ordering cost, Q/2 is average inventory, and H is holding cost per unit.
What key assumptions underlie the basic EOQ model?
Constant and known demand, constant lead time, instantaneous replenishment, no quantity discounts, no stockouts (demand fully met), and constant holding and ordering costs.
Distinguish a fixed-order-quantity (Q) system from a fixed-time-period (P) system.
Q-system (continuous review): a fixed quantity is ordered whenever stock hits the reorder point; inventory is monitored continuously. P-system (periodic review): inventory is reviewed at fixed time intervals and a variable quantity is ordered up to a target level.
Define 'reorder point (ROP)' and give its formula without uncertainty.
The inventory level at which a new order is placed. Without uncertainty: ROP = d × L, where d = demand per unit time and L = lead time (in the same units).
Give the reorder point formula that includes safety stock.
ROP = (Average demand during lead time) + Safety Stock = d̄ × L + SS.
Define 'safety stock' and explain why it is held.
Extra inventory held beyond expected demand during lead time to protect against variability in demand and/or lead time, reducing the risk of stockouts and providing a desired service level.
Give the safety stock formula when demand is variable but lead time is constant.
Safety Stock = z × σ_d × √L, where z = service-level factor from the standard normal table, σ_d = standard deviation of demand per period, and L = lead time.
What is the 'service level' (z-value) in safety stock, and how does it relate to stockout risk?
Service level is the probability of not having a stockout during the lead time; a higher service level requires a higher z-value and thus more safety stock. E.g., 95% service ≈ z = 1.65, 99% ≈ z = 2.33.
What is ABC analysis (Pareto inventory classification)?
A method of classifying inventory items into groups A, B, and C by annual dollar usage (value), so that control effort is focused on the most important items (the Pareto 80/20 principle).
Describe the typical A, B, and C class characteristics in ABC analysis.
Class A: ~10-20% of items, ~70-80% of annual dollar value — tight control, frequent review. Class B: ~30% of items, ~15-20% of value — moderate control. Class C: ~50% of items, ~5-10% of value — loose control, bulk ordering.
How is annual dollar usage (the ranking basis for ABC analysis) calculated?
Annual dollar usage = Annual demand (units) × Unit cost. Items are ranked in descending order of this value and grouped into A, B, C classes.
Define Total Quality Management (TQM).
An organization-wide management philosophy of continuous improvement focused on meeting/exceeding customer requirements through the involvement of all employees, processes, and functions.
What are the core principles of TQM?
Customer focus, continuous improvement (kaizen), employee involvement/empowerment, process-centered approach, fact-based decision making, and integrated systems/supplier partnerships.
What is the PDCA (Deming) cycle?
Plan-Do-Check-Act: a four-step iterative cycle for continuous improvement — Plan a change, Do (implement on small scale), Check (evaluate results), and Act (standardize or revise).
Name the 'seven basic tools of quality'.
Check sheet, Histogram, Pareto chart, Cause-and-effect (Ishikawa/fishbone) diagram, Scatter diagram, Control chart, and Flowchart (stratification is sometimes substituted).
Distinguish the 'cost of quality' categories.
Prevention costs (avoiding defects), Appraisal costs (inspection/testing), Internal failure costs (defects found before delivery), and External failure costs (defects found by the customer). Prevention + appraisal are conformance costs; failures are non-conformance costs.
What does 'Six Sigma' aim for in terms of defects?
A quality level of no more than 3.4 defects per million opportunities (DPMO), achieved through the DMAIC methodology (Define, Measure, Analyze, Improve, Control).
Define Statistical Process Control (SPC).
The use of statistical methods (especially control charts) to monitor and control a process, distinguishing normal common-cause variation from special-cause variation so the process stays in control.
Distinguish 'common-cause' from 'special-cause' (assignable) variation.
Common-cause variation is inherent, random, and predictable (process in control). Special-cause variation is due to identifiable, non-random factors (process out of control) that should be investigated and removed.
What is the difference between control charts for variables and for attributes?
Variables charts measure continuous data (X̄ and R charts for mean and range). Attributes charts count defects/defectives (p-chart for fraction defective, c-chart for number of defects per unit).
How are the upper and lower control limits typically set on a control chart?
At the process center line ± 3 standard deviations (3-sigma limits): UCL = mean + 3σ, LCL = mean − 3σ, capturing about 99.7% of common-cause variation.
What is the difference between an X-bar chart and an R chart, and why are they used together?
The X-bar chart monitors the process mean (central tendency); the R (range) chart monitors process variability (spread). Both are needed because a process can shift in average or in dispersion independently.
What does a process capability index (Cp / Cpk) measure?
It compares the spread/centering of process output to the specification limits. Cp = (USL − LSL)/6σ measures potential capability; Cpk accounts for centering. A value ≥ 1.33 is commonly considered capable.
Distinguish 'quality control' from 'quality assurance'.
Quality control (QC) is reactive — inspecting and testing output to detect and correct defects. Quality assurance (QA) is proactive — building processes and systems to prevent defects from occurring.
What this deck covers
The Operations and Supply Chain Management deck follows the CSS Business Administration Operations and Supply Chain Management syllabus — 6 chapters and 20 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 10.5 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 184 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Operations and Supply Chain Management flashcards FAQ
How many Operations and Supply Chain Management flashcards are in this CSS Business Administration deck?
63 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these CSS Business Administration flashcards free?
Yes. The preview here is free to read with no signup, and the full 63-card deck is free inside the Examius app.
What do the Operations and Supply Chain Management cards cover?
They follow the CSS Business Administration Operations and Supply Chain Management syllabus — 6 chapters and 20 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.