WGU D470 Exam • Questions With Credible Solutions
The total cost incurred in acquiring, operating, and maintaining an asset.
Accurate Answer:- Total Cost of Ownership (TCO)
Costs associated with holding, managing, and replenishing inventory,
including capital, service, storage, and risk costs. Accurate Answer:-
Inventory Costs
Demand that is directly related to another product (e.g., car tires depend on
car production). Accurate Answer:- Dependent Demand
Demand that is not influenced by the demand for another product.
Accurate Answer:- Independent Demand
Demand fluctuations that amplify up the supply chain, causing inefficiencies.
Accurate Answer:- Bullwhip Effect
A model used to determine the ideal order quantity that minimizes total
inventory costs. Accurate Answer:- Economic Order Quantity (EOQ)
An inventory strategy that reduces waste by receiving goods only as they are
needed. Accurate Answer:- Just-In-Time (JIT)
A supply chain strategy where inventory is produced based on forecasted
demand. Accurate Answer:- Push System
A system where inventory production is based on actual demand.
Accurate Answer:- Pull System
Comparing business processes and performance metrics to industry best
practices. Accurate Answer:- Benchmarking
A framework for analyzing supply chain performance based on metrics like
cost, time, and flexibility. Accurate Answer:- SCOR Model
Logistics focused on providing aid and resources efficiently in crisis situations.
Accurate Answer:- Humanitarian Logistics
,Outsourcing logistics operations to external providers. Accurate Answer:-
Third-Party Logistics (3PL)
A costing method that assigns costs based on activities that drive costs.
Accurate Answer:- Activity-Based Costing (ABC)
Extra inventory held to prevent stockouts due to demand variability.
Accurate Answer:- Safety Stock
Reduce production costs, Accommodate demand variations, Manage lead time
variability
Take advantage of discounts, Support seasonal and price fluctuations, improve
distribution efficiency, Provide immediate customer service, Minimize
production delays Accurate Answer:- Inventory Holding Reasons
Raw materials, In-process stock, Finished goods, Pipeline stock, Spare parts
and general stores Accurate Answer:- Types of Inventory
Inventory levels checked at fixed intervals. Accurate Answer:- Periodic
Review System
Inventory is reordered when stock falls to a specific level. Accurate
Answer:- Fixed-Point Reorder System
Cost of financing inventory. Accurate Answer:- Capital Cost
Stock management and insurance expenses. Accurate Answer:- Service
Cost
Costs for warehousing and handling. Accurate Answer:- Storage Cost
Losses from theft, deterioration, or obsolescence. Accurate Answer:-
Risk Cost
Judgmental, experimental Accurate Answer:- Qualitative
Causal, time-series models like moving average, exponential smoothing
Accurate Answer:- Quantitative
, Introductory, growth, maturity, decline stages Accurate Answer:- Life
Cycle Forecasting
Resources owned by an organization that are expected to provide future
economic benefits. Accurate Answer:- Assets
The total expenditure incurred by an organization to acquire goods or
services, including production, operation, and overhead expenses.
Accurate Answer:- Cost
The duration taken to complete a specific process or deliver a product, often
measured in days, hours, or minutes. Accurate Answer:- Time
A measure of the efficiency of production, calculated as the ratio of outputs
produced to the inputs used. Accurate Answer:- Productivity
SCOR Metrics (Assets, cost, time, productivity) Accurate Answer:- SCOR
Metrics
Fewer warehouses serving larger areas; cost-efficient but slower delivery.
Accurate Answer:- Centralized Warehousing
Multiple warehouses close to customers; faster delivery but higher costs.
Accurate Answer:- Decentralized Warehousing
Reducing storage time by immediately transferring goods from inbound to
outbound shipments. Accurate Answer:- Cross-Docking
Direct supplier-to-customer shipping, reducing inventory costs. Accurate
Answer:- Dropshipping
Cost-effective for large, heavy shipments; slower transit time. Accurate
Answer:- Rail Transport
Fastest mode but expensive; ideal for high-value, low-weight goods.
Accurate Answer:- Air Transport
Best for international bulk shipments; low cost but long transit time.
Accurate Answer:- Sea Transport
The total cost incurred in acquiring, operating, and maintaining an asset.
Accurate Answer:- Total Cost of Ownership (TCO)
Costs associated with holding, managing, and replenishing inventory,
including capital, service, storage, and risk costs. Accurate Answer:-
Inventory Costs
Demand that is directly related to another product (e.g., car tires depend on
car production). Accurate Answer:- Dependent Demand
Demand that is not influenced by the demand for another product.
Accurate Answer:- Independent Demand
Demand fluctuations that amplify up the supply chain, causing inefficiencies.
Accurate Answer:- Bullwhip Effect
A model used to determine the ideal order quantity that minimizes total
inventory costs. Accurate Answer:- Economic Order Quantity (EOQ)
An inventory strategy that reduces waste by receiving goods only as they are
needed. Accurate Answer:- Just-In-Time (JIT)
A supply chain strategy where inventory is produced based on forecasted
demand. Accurate Answer:- Push System
A system where inventory production is based on actual demand.
Accurate Answer:- Pull System
Comparing business processes and performance metrics to industry best
practices. Accurate Answer:- Benchmarking
A framework for analyzing supply chain performance based on metrics like
cost, time, and flexibility. Accurate Answer:- SCOR Model
Logistics focused on providing aid and resources efficiently in crisis situations.
Accurate Answer:- Humanitarian Logistics
,Outsourcing logistics operations to external providers. Accurate Answer:-
Third-Party Logistics (3PL)
A costing method that assigns costs based on activities that drive costs.
Accurate Answer:- Activity-Based Costing (ABC)
Extra inventory held to prevent stockouts due to demand variability.
Accurate Answer:- Safety Stock
Reduce production costs, Accommodate demand variations, Manage lead time
variability
Take advantage of discounts, Support seasonal and price fluctuations, improve
distribution efficiency, Provide immediate customer service, Minimize
production delays Accurate Answer:- Inventory Holding Reasons
Raw materials, In-process stock, Finished goods, Pipeline stock, Spare parts
and general stores Accurate Answer:- Types of Inventory
Inventory levels checked at fixed intervals. Accurate Answer:- Periodic
Review System
Inventory is reordered when stock falls to a specific level. Accurate
Answer:- Fixed-Point Reorder System
Cost of financing inventory. Accurate Answer:- Capital Cost
Stock management and insurance expenses. Accurate Answer:- Service
Cost
Costs for warehousing and handling. Accurate Answer:- Storage Cost
Losses from theft, deterioration, or obsolescence. Accurate Answer:-
Risk Cost
Judgmental, experimental Accurate Answer:- Qualitative
Causal, time-series models like moving average, exponential smoothing
Accurate Answer:- Quantitative
, Introductory, growth, maturity, decline stages Accurate Answer:- Life
Cycle Forecasting
Resources owned by an organization that are expected to provide future
economic benefits. Accurate Answer:- Assets
The total expenditure incurred by an organization to acquire goods or
services, including production, operation, and overhead expenses.
Accurate Answer:- Cost
The duration taken to complete a specific process or deliver a product, often
measured in days, hours, or minutes. Accurate Answer:- Time
A measure of the efficiency of production, calculated as the ratio of outputs
produced to the inputs used. Accurate Answer:- Productivity
SCOR Metrics (Assets, cost, time, productivity) Accurate Answer:- SCOR
Metrics
Fewer warehouses serving larger areas; cost-efficient but slower delivery.
Accurate Answer:- Centralized Warehousing
Multiple warehouses close to customers; faster delivery but higher costs.
Accurate Answer:- Decentralized Warehousing
Reducing storage time by immediately transferring goods from inbound to
outbound shipments. Accurate Answer:- Cross-Docking
Direct supplier-to-customer shipping, reducing inventory costs. Accurate
Answer:- Dropshipping
Cost-effective for large, heavy shipments; slower transit time. Accurate
Answer:- Rail Transport
Fastest mode but expensive; ideal for high-value, low-weight goods.
Accurate Answer:- Air Transport
Best for international bulk shipments; low cost but long transit time.
Accurate Answer:- Sea Transport
