WGU C720 OA PREP GUIDE EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS.
Inputs - ANS People, capital, material, money
Outputs - ANS Services and goods
Sustainability - ANS is 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 - ANS Acronym scene as 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 - ANS is a mathematical calculation; it is the ratio of the outputs achieved
divided by the inputs consumed to achieve those outputs.
6 Types of Inventory - ANS Raw Materials, Work In Progress, Finished Goods, Replacement
parts inventory, Supplies and Transportation.
Raw Materials - ANS These parts and materials are obtained from suppliers and are used in
the production process.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Work-in-process (WIP) - ANS These are partly finished parts, components, sub-assemblies, or
modules.
Finished Goods - ANS Items are ready to ship to the customer. No more work is required.
Replacement parts inventory - ANS These are maintained to replace other parts in machinery
or equipment as those parts wear out
Supplies - ANS 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): - ANS The portion of inventory that is in the process of being
shipped through the distribution system.
4 Types of Demand - ANS Peak, Seasonal, Unexpected and Chase
Peak Demand - ANS 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 - ANS 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 - ANS 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 - ANS 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
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 - ANS A cushion of inventory to protect against unexpected demand. In this way,
they can continue to meet customer demand without delays.
Stock Out - ANS occurs when inventory is depleted.
Perpetual Inventory System - ANS continuously monitors inventory levels and is also called
continuous review system. Requires human input (i.e. cashier) and the ordering of more
inventory is triggered by reorder point.
Requires an exact inventory balance at all times
Best for big businesses, retail stores or banks
High value and high volume
Expensive to implement and maintain
Periodic Inventory System - ANS randomly monitors inventory levels and is also called the
fixed order interval system.
Requires a physical count periodically,
Used when a supplier will only deliver at specific time intervals
Low value and volume
Small Businesses
Inexpensive to implement and maintain
ABC analysis - ANS has been 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 value can be obtained. Dollar usage follows the Pareto Principle in that frequently,
only 20% of all the items account for 80% of the total dollar usage, while the remaining items
frequently account for only 20% of the dollar usage. This principle leads to the ABC
classification, which is based on focusing efforts where the payoff is highest
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
2025/2026 QUESTIONS AND ANSWERS
100% PASS.
Inputs - ANS People, capital, material, money
Outputs - ANS Services and goods
Sustainability - ANS is 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 - ANS Acronym scene as 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 - ANS is a mathematical calculation; it is the ratio of the outputs achieved
divided by the inputs consumed to achieve those outputs.
6 Types of Inventory - ANS Raw Materials, Work In Progress, Finished Goods, Replacement
parts inventory, Supplies and Transportation.
Raw Materials - ANS These parts and materials are obtained from suppliers and are used in
the production process.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Work-in-process (WIP) - ANS These are partly finished parts, components, sub-assemblies, or
modules.
Finished Goods - ANS Items are ready to ship to the customer. No more work is required.
Replacement parts inventory - ANS These are maintained to replace other parts in machinery
or equipment as those parts wear out
Supplies - ANS 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): - ANS The portion of inventory that is in the process of being
shipped through the distribution system.
4 Types of Demand - ANS Peak, Seasonal, Unexpected and Chase
Peak Demand - ANS 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 - ANS 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 - ANS 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 - ANS 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
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 - ANS A cushion of inventory to protect against unexpected demand. In this way,
they can continue to meet customer demand without delays.
Stock Out - ANS occurs when inventory is depleted.
Perpetual Inventory System - ANS continuously monitors inventory levels and is also called
continuous review system. Requires human input (i.e. cashier) and the ordering of more
inventory is triggered by reorder point.
Requires an exact inventory balance at all times
Best for big businesses, retail stores or banks
High value and high volume
Expensive to implement and maintain
Periodic Inventory System - ANS randomly monitors inventory levels and is also called the
fixed order interval system.
Requires a physical count periodically,
Used when a supplier will only deliver at specific time intervals
Low value and volume
Small Businesses
Inexpensive to implement and maintain
ABC analysis - ANS has been 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 value can be obtained. Dollar usage follows the Pareto Principle in that frequently,
only 20% of all the items account for 80% of the total dollar usage, while the remaining items
frequently account for only 20% of the dollar usage. This principle leads to the ABC
classification, which is based on focusing efforts where the payoff is highest
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
