WGU Operations and Supply Chain
Management UPDATED Actual Exam
Questions and CORRECT Answers
Process selection - CORRECT ANSWER✔✔- determining the most appropriate method of
completing a task. It is a series of decisions that include technical or engineering issues and
volume or scale issues. There is a strong relationship among process selection and volume,
cost, and profit.
Capacity - CORRECT ANSWER✔✔- is a measure of an organization's ability to sustainably
provide customers with the demand services or goods in the amount requested and in a timely
manner.
Capacity planning - CORRECT ANSWER✔✔- very important because large amounts of
capital are usually required to build the facilities and purchase the equipment to build
capacity
System capacity - CORRECT ANSWER✔✔- the ability of an overall organization to
produce a sufficient number of goods and services to meet the demands of customers,
considering both its strongest and weakest production points
Product oriented layout - CORRECT ANSWER✔✔- characterized by high demand for the
same or similar product.
Few, if any, product variations, and the layout fits the dominant flow of the product
Process-oriented layout - CORRECT ANSWER✔✔- characterized by the production of
many different products with the same equipment and low volume of any individual product
Design capacity - CORRECT ANSWER✔✔- the maximum achievable output of a process or
system
Effective capacity - CORRECT ANSWER✔✔- the maximum capacity given the product
mix, equipment changeovers, and scheduled downtime of the production schedule.
,Capacity utilization - CORRECT ANSWER✔✔- is a metric used to determine how much
capacity is actually being used on an average basis. Actual speed/design capacity
Efficiency - CORRECT ANSWER✔✔- actual output/effective capacity
Throughput - CORRECT ANSWER✔✔- the maximum rate of output possible in the current
system
Theory of Constraints 5-step thinking process: - CORRECT ANSWER✔✔- a. Identify the
system's constraints
b. Exploit the system's constraint
c. Subordinate everything else to the above decision
d. Elevate the system's constraint
e. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a systems
constraint
Facility location - CORRECT ANSWER✔✔- the placement of a facility with regards to a
company's customers, suppliers, and other facilities with which the company interacts.
Quantitative factors - CORRECT ANSWER✔✔- are easily measurable and are usually
assigned a numerical value
Qualitative factors - CORRECT ANSWER✔✔- are more subjective and are usually not
enumerated
Regional facility strategy - CORRECT ANSWER✔✔- requires that each production facility
has a defined marketing area and each facility produces a complete line of products for that
area.
Product facility strategy - CORRECT ANSWER✔✔- one facility is responsible for producing
one product or product line and shipping that product throughout the country and world.
, Leverage - CORRECT ANSWER✔✔- making a workforce more productive through the use
of better tools
Assembly line - CORRECT ANSWER✔✔- used to describe the assembly of low-variety
discrete products. Has relatively high fixed costs and relatively low variable costs.
Batch flow - CORRECT ANSWER✔✔- used to describe a production process that
aggregates similar products together to generate sufficient volume for efficient use in a
facility. Requires changeover time.
Flexible manufacturing systems - CORRECT ANSWER✔✔- process options that offer the
potential to produce low-cost products that meet varying customer requirements.
Group technology - CORRECT ANSWER✔✔- a set of methods that enables firms to classify
parts based on size, shape, use, type of material, and method of production.
A family of parts - CORRECT ANSWER✔✔- - a collection of parts with similarities in
characteristics
Mass customization - CORRECT ANSWER✔✔- the low-cost, high-quality, large-volume
delivery of individually customized goods and services.
Economies of scope - CORRECT ANSWER✔✔- requires flexibility within the organization
and suggests building volume to cover fixed costs by producing a variety of products on the
same equipment.
Job shop - CORRECT ANSWER✔✔- produces the lowest volume of similar products
Economy of scale - CORRECT ANSWER✔✔- the ability to produce more goods at a lower
cost by better utilizing the same fixed costs.
Just in time (JIT) - CORRECT ANSWER✔✔- an inventory strategy companies employ to
increase efficiency and decrease waste by receiving goods only as they are needed in the
production process, thereby reducing inventory costs.
Management UPDATED Actual Exam
Questions and CORRECT Answers
Process selection - CORRECT ANSWER✔✔- determining the most appropriate method of
completing a task. It is a series of decisions that include technical or engineering issues and
volume or scale issues. There is a strong relationship among process selection and volume,
cost, and profit.
Capacity - CORRECT ANSWER✔✔- is a measure of an organization's ability to sustainably
provide customers with the demand services or goods in the amount requested and in a timely
manner.
Capacity planning - CORRECT ANSWER✔✔- very important because large amounts of
capital are usually required to build the facilities and purchase the equipment to build
capacity
System capacity - CORRECT ANSWER✔✔- the ability of an overall organization to
produce a sufficient number of goods and services to meet the demands of customers,
considering both its strongest and weakest production points
Product oriented layout - CORRECT ANSWER✔✔- characterized by high demand for the
same or similar product.
Few, if any, product variations, and the layout fits the dominant flow of the product
Process-oriented layout - CORRECT ANSWER✔✔- characterized by the production of
many different products with the same equipment and low volume of any individual product
Design capacity - CORRECT ANSWER✔✔- the maximum achievable output of a process or
system
Effective capacity - CORRECT ANSWER✔✔- the maximum capacity given the product
mix, equipment changeovers, and scheduled downtime of the production schedule.
,Capacity utilization - CORRECT ANSWER✔✔- is a metric used to determine how much
capacity is actually being used on an average basis. Actual speed/design capacity
Efficiency - CORRECT ANSWER✔✔- actual output/effective capacity
Throughput - CORRECT ANSWER✔✔- the maximum rate of output possible in the current
system
Theory of Constraints 5-step thinking process: - CORRECT ANSWER✔✔- a. Identify the
system's constraints
b. Exploit the system's constraint
c. Subordinate everything else to the above decision
d. Elevate the system's constraint
e. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a systems
constraint
Facility location - CORRECT ANSWER✔✔- the placement of a facility with regards to a
company's customers, suppliers, and other facilities with which the company interacts.
Quantitative factors - CORRECT ANSWER✔✔- are easily measurable and are usually
assigned a numerical value
Qualitative factors - CORRECT ANSWER✔✔- are more subjective and are usually not
enumerated
Regional facility strategy - CORRECT ANSWER✔✔- requires that each production facility
has a defined marketing area and each facility produces a complete line of products for that
area.
Product facility strategy - CORRECT ANSWER✔✔- one facility is responsible for producing
one product or product line and shipping that product throughout the country and world.
, Leverage - CORRECT ANSWER✔✔- making a workforce more productive through the use
of better tools
Assembly line - CORRECT ANSWER✔✔- used to describe the assembly of low-variety
discrete products. Has relatively high fixed costs and relatively low variable costs.
Batch flow - CORRECT ANSWER✔✔- used to describe a production process that
aggregates similar products together to generate sufficient volume for efficient use in a
facility. Requires changeover time.
Flexible manufacturing systems - CORRECT ANSWER✔✔- process options that offer the
potential to produce low-cost products that meet varying customer requirements.
Group technology - CORRECT ANSWER✔✔- a set of methods that enables firms to classify
parts based on size, shape, use, type of material, and method of production.
A family of parts - CORRECT ANSWER✔✔- - a collection of parts with similarities in
characteristics
Mass customization - CORRECT ANSWER✔✔- the low-cost, high-quality, large-volume
delivery of individually customized goods and services.
Economies of scope - CORRECT ANSWER✔✔- requires flexibility within the organization
and suggests building volume to cover fixed costs by producing a variety of products on the
same equipment.
Job shop - CORRECT ANSWER✔✔- produces the lowest volume of similar products
Economy of scale - CORRECT ANSWER✔✔- the ability to produce more goods at a lower
cost by better utilizing the same fixed costs.
Just in time (JIT) - CORRECT ANSWER✔✔- an inventory strategy companies employ to
increase efficiency and decrease waste by receiving goods only as they are needed in the
production process, thereby reducing inventory costs.
