L5M7 Exam Dumps : Achieving Competitive Advantage Through the Supply Chain (L5M7)

Capital expenditure (CapEx)coverslong-term investmentssuch as equipment or infrastructure that deliver value over time—e.g., MRI scanners. Operating costs (OpEx) include salaries and consumables.

Short cited extract: “CapEx – major assets and equipment; OpEx – running costs such as wages.” (L5M7 Study Guide, Domain 3.2)

Cost-plus pricingis based onactual material and labour costs plus an agreed marginfor overheads and profit.

Short cited extract: “Cost-plus = actual cost + agreed mark-up for profit/overheads.” (L5M7 Study Guide, p.191)

Trust in supply chains is built on components includingintegrity,competence,loyalty,openness, andfairness. Short extract: “key trust components: integrity, competence, loyalty, openness, fairness.” (L5M7 Study Guide, Domain 3.4 section)