WGU C795 STUDY GUIDE PASSED FINAL
PAPER 2026 STUDY GUIDE DETAILED ANSWERS
READY
◉ Pareto Principle.
Answer: Only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of
the dollar usage. This principle leads to the ABC classification, which
is based on focusing efforts where the payoff is highest
◉ 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.
◉ Economic Production Quantity (EPQ).
Answer: For inventory that will be used in production, When
incremental ordering and depletion of inventory is allowed, Also
called production order quantity.
,Most appropriate for manufacturing and production companies
◉ The goal of firms using the EOQ & EPQ model.
Answer: Minimize the total annual costs of ordering and holding
inventory by varying the order quantity.
◉ Quantity discount model.
Answer: A discount offered in price for ordering above a specified
amount
◉ Transportation discounts.
Answer: A discount offered on shipping cost for ordering above a
specified amount
◉ Revenue Sharing.
Answer: When 2 or more companies partner and divides the profits
received based on an agreement between all parties involved.
◉ Reserve Capacity.
Answer: When a company stores, or pays another company to store,
excess inventory to be used for unexpected demand
◉ Quality.
, Answer: the degree to which a specific product conforms to its
design characteristics or specifications
The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and
expectations
Is everyone's responsibility in the organization
◉ Internal orientation of quality.
Answer: Directly measure characteristics of the product or service,
such as the number of packages delivered on time or the thickness of
an engine part based on manufactures specification.
◉ External orientation of quality.
Answer: Fitness for use for the customer or the capacity to satisfy
customer's needs.
◉ Quality Function Deployment (QFD).
Answer: Taking customer expectations and transforming them into
specific actions designed to meet those expectations
◉ Reliability.
PAPER 2026 STUDY GUIDE DETAILED ANSWERS
READY
◉ Pareto Principle.
Answer: Only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of
the dollar usage. This principle leads to the ABC classification, which
is based on focusing efforts where the payoff is highest
◉ 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.
◉ Economic Production Quantity (EPQ).
Answer: For inventory that will be used in production, When
incremental ordering and depletion of inventory is allowed, Also
called production order quantity.
,Most appropriate for manufacturing and production companies
◉ The goal of firms using the EOQ & EPQ model.
Answer: Minimize the total annual costs of ordering and holding
inventory by varying the order quantity.
◉ Quantity discount model.
Answer: A discount offered in price for ordering above a specified
amount
◉ Transportation discounts.
Answer: A discount offered on shipping cost for ordering above a
specified amount
◉ Revenue Sharing.
Answer: When 2 or more companies partner and divides the profits
received based on an agreement between all parties involved.
◉ Reserve Capacity.
Answer: When a company stores, or pays another company to store,
excess inventory to be used for unexpected demand
◉ Quality.
, Answer: the degree to which a specific product conforms to its
design characteristics or specifications
The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and
expectations
Is everyone's responsibility in the organization
◉ Internal orientation of quality.
Answer: Directly measure characteristics of the product or service,
such as the number of packages delivered on time or the thickness of
an engine part based on manufactures specification.
◉ External orientation of quality.
Answer: Fitness for use for the customer or the capacity to satisfy
customer's needs.
◉ Quality Function Deployment (QFD).
Answer: Taking customer expectations and transforming them into
specific actions designed to meet those expectations
◉ Reliability.
