WGU C720 Complete OA Prep Guide Questions with Verified
Answers (Correct Update)
Question 1: Inputs
Answer: People, capital, material, money
Question 2: Outputs
Answer: Services and goods
Question 3: Sustainability
Answer: 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.
Question 4: VIRAL
Answer: 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.
Question 5: Productivity
Answer: A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
Question 6: 6 Types of Inventory
Answer: o Raw Materials o Work In Progress o Finished Goods o Replacement Parts Inventory o
Supplies o Transportation
Question 7: Raw Materials
Answer: These parts and materials are obtained from suppliers and are used in the production process.
Question 8: Work-in-process (WIP)
Answer: These are partly finished parts, components, sub- assemblies, or modules.
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, Question 9: Finished Goods
Answer: Items are ready to ship to the customer. No more work is required.
Question 10: Replacement parts inventory
Answer: These are maintained to replace other parts in machinery or equipment as those parts wear
out
Question 11: Supplies
Answer: 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.
Question 12: Transportation (pipeline):
Answer: The portion of inventory that is in the process of being shipped through the distribution
system.
Question 13: 4 Types of Demand
Answer: o Peak o Seasonal o Unexpected o Chase
Question 14: Peak Demand
Answer: 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.
Question 15: Seasonal Demand
Answer: 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.
Question 16: Unexpected Demand
Answer: 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.
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Answers (Correct Update)
Question 1: Inputs
Answer: People, capital, material, money
Question 2: Outputs
Answer: Services and goods
Question 3: Sustainability
Answer: 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.
Question 4: VIRAL
Answer: 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.
Question 5: Productivity
Answer: A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
Question 6: 6 Types of Inventory
Answer: o Raw Materials o Work In Progress o Finished Goods o Replacement Parts Inventory o
Supplies o Transportation
Question 7: Raw Materials
Answer: These parts and materials are obtained from suppliers and are used in the production process.
Question 8: Work-in-process (WIP)
Answer: These are partly finished parts, components, sub- assemblies, or modules.
Page 1
, Question 9: Finished Goods
Answer: Items are ready to ship to the customer. No more work is required.
Question 10: Replacement parts inventory
Answer: These are maintained to replace other parts in machinery or equipment as those parts wear
out
Question 11: Supplies
Answer: 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.
Question 12: Transportation (pipeline):
Answer: The portion of inventory that is in the process of being shipped through the distribution
system.
Question 13: 4 Types of Demand
Answer: o Peak o Seasonal o Unexpected o Chase
Question 14: Peak Demand
Answer: 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.
Question 15: Seasonal Demand
Answer: 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.
Question 16: Unexpected Demand
Answer: 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.
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