WGU D773 FNN1 TASK 2 PROJECT PREP
GUIDE 2026 CORE COMPETENCY
BREAKDOWN AND SOLVED ELEMENTS
◉ Forward Vertical Integration
Answer: When a company owns the retailer or retail process in the
supply chain.
◉ Insourcing
Answer: The goods and services are provided by the organization
itself
◉ Outsourcing
Answer: The goods and services are obtained from outside suppliers
◉ Vendor Managed Inventory
Answer: The vendor, or supplier, can better coordinate its own
production with the replenishment of supplier inventory, thus
reducing costs and improving delivery performance between the
supplier and the retailer.
, To make this work, the suppliers receive daily point-of-sale (POS)
data from the retail stores, and they also have access to the retailer's
inventory files.
◉ Agile
Answer: The use of responsiveness, competency, flexibility, and
quickness to manage how well a supply chain entity operates on a
daily basis.
Suitable for innovative products like cell phones and computers.
Focus: Speed and flexibility.
For products with short lifespan and unpredictable demand.
◉ LEAN
Answer: Traditional "factory" chain, which focuses on producing
high volume at low cost.
The goal is to add value for customers by reducing the cost of goods
and lowering waste or non-value added activities.
Most suitable for traditional products with minimal innovation such
as curtain rods or can openers.
GUIDE 2026 CORE COMPETENCY
BREAKDOWN AND SOLVED ELEMENTS
◉ Forward Vertical Integration
Answer: When a company owns the retailer or retail process in the
supply chain.
◉ Insourcing
Answer: The goods and services are provided by the organization
itself
◉ Outsourcing
Answer: The goods and services are obtained from outside suppliers
◉ Vendor Managed Inventory
Answer: The vendor, or supplier, can better coordinate its own
production with the replenishment of supplier inventory, thus
reducing costs and improving delivery performance between the
supplier and the retailer.
, To make this work, the suppliers receive daily point-of-sale (POS)
data from the retail stores, and they also have access to the retailer's
inventory files.
◉ Agile
Answer: The use of responsiveness, competency, flexibility, and
quickness to manage how well a supply chain entity operates on a
daily basis.
Suitable for innovative products like cell phones and computers.
Focus: Speed and flexibility.
For products with short lifespan and unpredictable demand.
◉ LEAN
Answer: Traditional "factory" chain, which focuses on producing
high volume at low cost.
The goal is to add value for customers by reducing the cost of goods
and lowering waste or non-value added activities.
Most suitable for traditional products with minimal innovation such
as curtain rods or can openers.
