WGU C105 STUDY GUIDE 2026 COMPLETE
QUESTIONS AND ANSWERS GRADED A+
⩥ ABC analysis. Answer: 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 _____ classification,
which is based on focusing efforts where the payoff is highest
⩥ Pareto Principle. Answer: 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
⩥ Economic Order Quantity (EOQ). Answer: For inventory that doesn't
require production, when demand is constant and known, when cost per
unit does not depend on order quantity.
Most appropriate for retail stores or companies that order finished goods.
,⩥ Economic Production Quantity (EPQ). Answer: For inventory that
will be used in production, When incremental ordering and depletion of
inventory is allowed, Also called production order quantity.
Most appropriate for manufacturing and production companies
⩥ The goal of firms using the EOQ & EPQ model. Answer: Minimize
the total annual costs of ordering and holding inventory by varying the
order quantity.
⩥ Quantity discount model. Answer: A discount offered in price for
ordering above a specified amount
⩥ Transportation discounts. Answer: A discount offered on shipping cost
for ordering above a specified amount
⩥ Revenue Sharing. Answer: When 2 or more companies partner and
divides the profits received based on an agreement between all parties
involved.
⩥ Reserve Capacity. Answer: When a company stores, or pays another
company to store, excess inventory to be used for unexpected demand
⩥ Quality. Answer: the degree to which a specific product conforms to
its design characteristics or specifications
, The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and
expectations
Is everyone's responsibility in the organization
⩥ Internal orientation of quality. Answer: Directly measure
characteristics of the product or service, such as the number of packages
delivered on time or the thickness of an engine part based on
manufactures specification.
⩥ External orientation of quality. Answer: Fitness for use for the
customer or the capacity to satisfy customer's needs.
⩥ Quality Function Deployment (QFD). Answer: Taking customer
expectations and transforming them into specific actions designed to
meet those expectations
⩥ Reliability. Answer: Ability to perform the promised service
dependably and accurately.
⩥ Responsiveness. Answer: Willingness to help customers and provide
prompt service.
QUESTIONS AND ANSWERS GRADED A+
⩥ ABC analysis. Answer: 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 _____ classification,
which is based on focusing efforts where the payoff is highest
⩥ Pareto Principle. Answer: 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
⩥ Economic Order Quantity (EOQ). Answer: For inventory that doesn't
require production, when demand is constant and known, when cost per
unit does not depend on order quantity.
Most appropriate for retail stores or companies that order finished goods.
,⩥ Economic Production Quantity (EPQ). Answer: For inventory that
will be used in production, When incremental ordering and depletion of
inventory is allowed, Also called production order quantity.
Most appropriate for manufacturing and production companies
⩥ The goal of firms using the EOQ & EPQ model. Answer: Minimize
the total annual costs of ordering and holding inventory by varying the
order quantity.
⩥ Quantity discount model. Answer: A discount offered in price for
ordering above a specified amount
⩥ Transportation discounts. Answer: A discount offered on shipping cost
for ordering above a specified amount
⩥ Revenue Sharing. Answer: When 2 or more companies partner and
divides the profits received based on an agreement between all parties
involved.
⩥ Reserve Capacity. Answer: When a company stores, or pays another
company to store, excess inventory to be used for unexpected demand
⩥ Quality. Answer: the degree to which a specific product conforms to
its design characteristics or specifications
, The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and
expectations
Is everyone's responsibility in the organization
⩥ Internal orientation of quality. Answer: Directly measure
characteristics of the product or service, such as the number of packages
delivered on time or the thickness of an engine part based on
manufactures specification.
⩥ External orientation of quality. Answer: Fitness for use for the
customer or the capacity to satisfy customer's needs.
⩥ Quality Function Deployment (QFD). Answer: Taking customer
expectations and transforming them into specific actions designed to
meet those expectations
⩥ Reliability. Answer: Ability to perform the promised service
dependably and accurately.
⩥ Responsiveness. Answer: Willingness to help customers and provide
prompt service.
