WGU D120 FINAL TEST 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
◍ Independent demand.
Answer: Items usually include finished products, such as the completed
tricycle or replacement parts sold to customers.
◍ Assurance.
Answer: Knowledge and courtesy of employees and their ability to convey
trust and confidence.
◍ Bill of materials (BOM).
Answer: Lists the materials needed and the quantities of each.
◍ Revenue Sharing.
Answer: When 2 or more companies partner and divides the profits received
based on an agreement between all parties involved.
◍ Inputs.
Answer: People, capital, material, money
◍ Conformance.
Answer: Degree to which a product's design and operating characteristics
match pre-established standards.
◍ Regional facility strategy.
Answer: Requires that each production facility has a defined marketing area
and each facility produces a complete line of products for that area. This is
often done when customer convenience and access are important, or when
outbound transportation costs are very high.
◍ Lead.
Answer: Adds capacity with the anticipation of an increase in demand. This
strategy is considered aggressive and is primarily used in an effort to obtain
, customers fromcompetitors by reducing the amount of lead time and
improving service levels. Using this strategy ensures adequate capacity is
available to meet all demandsduring high growth periods.
◍ Chase Demand.
Answer: Demand that occurs when a company has to adjust production by
rates to match demand by varying the workforce and using overtime.
Companies vary the workforce by adding or reducing the number of
employees on duty at any given time. And they may choose to provide
overtime by asking workers to stay on the job beyond their normally
scheduled time.
◍ Time-bucket.
Answer: Period of time, usually one week, in which demand and
requirements are grouped for master scheduling and material requirements
planning.
◍ Economic Order Quantity (EOQ).
Answer: For inventory that doesn't require production, when demand is
constant and known, when cost per unit does not depend on order quantity.
Most appropriate for retail stores or companies that order finished goods.
◍ Six Sigma.
Answer: A continuous improvement strategy that relates to the firm's ability
to produce error free products. Specifically - 3.4 defects per 1 million units.
DMAIC o Define o Measure o Analyze o Improve o Control
◍ Third Party Logistics.
Answer: A company outsources their distribution, warehousing, and
fulfillment services.
◍ Actual Output.
Answer: Total amount produced during a given time period.
◍ Lead time.
Answer: Amount of time it takes to plan, produce, and deliver a product
, ◍ Six Sigma: Measure.
Answer: __________ current state or "as is", process performance is
accomplished with a process map of the activities performed at each step of
the process. Each step is assessed to determine the ability to meet customer
specification in a capability analysis.
◍ 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.
◍ 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.
◍ Constraint.
Answer: Any resource whose capacity is less than or equal to demand for
that resource
◍ Economies of Scope.
Answer: Can be expressed as "economies of scale through product line
diversification." It implies building the volume necessary to cover fixed
costs by producing a variety of products on the same equipment. Requires
flexibility within the organization.
◍ 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. Focus: Eliminate waste and reduce costs. For products
with long life cycles and stable demand.
◍ Lag.
Answer: Adds capacity only after an organization is running at full capacity
WITH CORRECT ANSWERS GRADED A+
◍ Independent demand.
Answer: Items usually include finished products, such as the completed
tricycle or replacement parts sold to customers.
◍ Assurance.
Answer: Knowledge and courtesy of employees and their ability to convey
trust and confidence.
◍ Bill of materials (BOM).
Answer: Lists the materials needed and the quantities of each.
◍ Revenue Sharing.
Answer: When 2 or more companies partner and divides the profits received
based on an agreement between all parties involved.
◍ Inputs.
Answer: People, capital, material, money
◍ Conformance.
Answer: Degree to which a product's design and operating characteristics
match pre-established standards.
◍ Regional facility strategy.
Answer: Requires that each production facility has a defined marketing area
and each facility produces a complete line of products for that area. This is
often done when customer convenience and access are important, or when
outbound transportation costs are very high.
◍ Lead.
Answer: Adds capacity with the anticipation of an increase in demand. This
strategy is considered aggressive and is primarily used in an effort to obtain
, customers fromcompetitors by reducing the amount of lead time and
improving service levels. Using this strategy ensures adequate capacity is
available to meet all demandsduring high growth periods.
◍ Chase Demand.
Answer: Demand that occurs when a company has to adjust production by
rates to match demand by varying the workforce and using overtime.
Companies vary the workforce by adding or reducing the number of
employees on duty at any given time. And they may choose to provide
overtime by asking workers to stay on the job beyond their normally
scheduled time.
◍ Time-bucket.
Answer: Period of time, usually one week, in which demand and
requirements are grouped for master scheduling and material requirements
planning.
◍ Economic Order Quantity (EOQ).
Answer: For inventory that doesn't require production, when demand is
constant and known, when cost per unit does not depend on order quantity.
Most appropriate for retail stores or companies that order finished goods.
◍ Six Sigma.
Answer: A continuous improvement strategy that relates to the firm's ability
to produce error free products. Specifically - 3.4 defects per 1 million units.
DMAIC o Define o Measure o Analyze o Improve o Control
◍ Third Party Logistics.
Answer: A company outsources their distribution, warehousing, and
fulfillment services.
◍ Actual Output.
Answer: Total amount produced during a given time period.
◍ Lead time.
Answer: Amount of time it takes to plan, produce, and deliver a product
, ◍ Six Sigma: Measure.
Answer: __________ current state or "as is", process performance is
accomplished with a process map of the activities performed at each step of
the process. Each step is assessed to determine the ability to meet customer
specification in a capability analysis.
◍ 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.
◍ 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.
◍ Constraint.
Answer: Any resource whose capacity is less than or equal to demand for
that resource
◍ Economies of Scope.
Answer: Can be expressed as "economies of scale through product line
diversification." It implies building the volume necessary to cover fixed
costs by producing a variety of products on the same equipment. Requires
flexibility within the organization.
◍ 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. Focus: Eliminate waste and reduce costs. For products
with long life cycles and stable demand.
◍ Lag.
Answer: Adds capacity only after an organization is running at full capacity
