WGU C720 COMPLETE OA PREP GUIDE
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Inputs - ANS People, capital, material, money
Outputs - ANS Services and goods
Sustainability - ANS 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 - 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 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 o Raw Materials
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - ANS These parts and materials are obtained from suppliers and are used in
the production process.
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 o Peak
o Seasonal
o Unexpected
o Chase
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
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 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
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Inputs - ANS People, capital, material, money
Outputs - ANS Services and goods
Sustainability - ANS 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 - 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 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 o Raw Materials
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - ANS These parts and materials are obtained from suppliers and are used in
the production process.
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 o Peak
o Seasonal
o Unexpected
o Chase
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
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 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
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
