WGU C720 Operations and Supply Chain
Management (New 2026/ 2027 Update)
Questions & Answers {Grade A} 100%
Correct (Verified Solutions)
Product Layout - correct answer A process that is characterized by high demand for
the same or similar products; for example, the process of continuously producing
paper along the supply chain; this system often measures output as the number of
items produced per day.
Process Layout - correct answer A process that is characterized by the production of
many different products with the same equipment and low volume for each product; an
example is a car repair shop that offer a variety of services; this system often
measures output as completed orders per day.
Design Capacity - correct answer The maximum achievable output of a process under
ideal conditions for a short period of time.
,Effective Capacity - correct answer The maximum achievable output given the product
mix, equipment changeovers, and downtime.
Capacity Utilization - correct answer Actual Output / Design Capacity; used to measure
how much capacity is actually being used on an average basis.
Actual Output - correct answer The effective capacity minus additional factors that
reduce production, such as a fuel stop.
Efficiency - correct answer Actual Output / Effective Capacity; used to measure how
much effective capacity is being used to achieve output.
Eliyahu Goldratt - correct answer An Israeli physicist who developed the Theory of
Constraints (TOC).
Theory of Constraints (TOC) - correct answer A five-step process that helps a firm
optimal throughput by identifying and fixing bottlenecks; includes 1) finding constraints,
2) exploit the constraints (get at 100% capacity), 3) subordinate everything else to
,decision (communicate to everyone), 4) elevate the constraint (how to increase
capacity), and 5) repeat (find a different bottleneck, for continuous improvement).
Throughput - correct answer The state where output is as close to the system capacity
as possible.
Facility Location - correct answer The placement of a facility with regards to a
company's customers, suppliers, and other facilities; should be a long-term, strategic
investment.
Regional Facility Strategy - correct answer Requires that each production facility has a
defined marketing area that produces a complete line of products for that area; used
when customer convenience is important, or when transportation costs are high.
Product Facility Strategy - correct answer One facility is responsible for producing one
product or product line and shipping it throughout the world; good for expensive, small,
specialized products that require many resources to produce.
, Variable Costs - correct answer Costs which change and can be adjusted as business
conditions change.
Total Costs - correct answer (Variable Costs per Unit)*(The Number of Units Produced)
+ Fixed Costs
Time Value of Money - correct answer One dollar received today is worth more than
one dollar received at some future point, such as through investment.
Process Selection - correct answer Determining the most appropriate method of
completing a task; volume, cost, and profit are three critical elements when selecting a
process.
Volume - correct answer Applying the appropriate mix of technology to leverage the
organization's workforce.
Leverage - correct answer Making a workforce more productive using better tools.
Management (New 2026/ 2027 Update)
Questions & Answers {Grade A} 100%
Correct (Verified Solutions)
Product Layout - correct answer A process that is characterized by high demand for
the same or similar products; for example, the process of continuously producing
paper along the supply chain; this system often measures output as the number of
items produced per day.
Process Layout - correct answer A process that is characterized by the production of
many different products with the same equipment and low volume for each product; an
example is a car repair shop that offer a variety of services; this system often
measures output as completed orders per day.
Design Capacity - correct answer The maximum achievable output of a process under
ideal conditions for a short period of time.
,Effective Capacity - correct answer The maximum achievable output given the product
mix, equipment changeovers, and downtime.
Capacity Utilization - correct answer Actual Output / Design Capacity; used to measure
how much capacity is actually being used on an average basis.
Actual Output - correct answer The effective capacity minus additional factors that
reduce production, such as a fuel stop.
Efficiency - correct answer Actual Output / Effective Capacity; used to measure how
much effective capacity is being used to achieve output.
Eliyahu Goldratt - correct answer An Israeli physicist who developed the Theory of
Constraints (TOC).
Theory of Constraints (TOC) - correct answer A five-step process that helps a firm
optimal throughput by identifying and fixing bottlenecks; includes 1) finding constraints,
2) exploit the constraints (get at 100% capacity), 3) subordinate everything else to
,decision (communicate to everyone), 4) elevate the constraint (how to increase
capacity), and 5) repeat (find a different bottleneck, for continuous improvement).
Throughput - correct answer The state where output is as close to the system capacity
as possible.
Facility Location - correct answer The placement of a facility with regards to a
company's customers, suppliers, and other facilities; should be a long-term, strategic
investment.
Regional Facility Strategy - correct answer Requires that each production facility has a
defined marketing area that produces a complete line of products for that area; used
when customer convenience is important, or when transportation costs are high.
Product Facility Strategy - correct answer One facility is responsible for producing one
product or product line and shipping it throughout the world; good for expensive, small,
specialized products that require many resources to produce.
, Variable Costs - correct answer Costs which change and can be adjusted as business
conditions change.
Total Costs - correct answer (Variable Costs per Unit)*(The Number of Units Produced)
+ Fixed Costs
Time Value of Money - correct answer One dollar received today is worth more than
one dollar received at some future point, such as through investment.
Process Selection - correct answer Determining the most appropriate method of
completing a task; volume, cost, and profit are three critical elements when selecting a
process.
Volume - correct answer Applying the appropriate mix of technology to leverage the
organization's workforce.
Leverage - correct answer Making a workforce more productive using better tools.
