Page 1 of 110
WGU C720 OPERATIONS & SUPPLY CHAIN MANAGEMENT –
OBJECTIVE ASSESSMENT (OA) PRACTICE ACTUAL EXAM WITH 200
QUESTIONS- CORRECT VERIFIED AND DETAILED ANSWERS
|ALREADY GRADED A+ || LATEST UPDATE -JUST RELEASED
Operations Management / Supply Chain Management
Exam coverage: -
WGU C720 OA covers operational strategies (SWOT, VIRAL, competitive
advantage), inventory management (EOQ, MRP, JIT, Kanban, ABC,
independent/dependent demand), quality management (TQM, Six
Sigma, Deming, Juran, Crosby, Taguchi, control charts, Pareto, fishbone),
process design, capacity planning, productivity, supply chain logistics,
forecasting, Lean (Kaizen, 5S, value stream mapping), sustainability,
ethics, and global operations.
Section 1: Operations & Business Strategy (Questions 1–25)
Question 1
A local coffee shop wants to evaluate its performance. Last month, it
used 500 labor hours to produce 10,000 cups of coffee. What is the labor
productivity ratio?
A) 0.05 cups per hour
B) 20 cups per hour
C) 10,000 cups
D) 500 hours per cup
, Page 2 of 110
Correct Answer: B
Rationale: Productivity is calculated as Output divided by Input. Output
is 10,000 cups, input is 500 labor hours, so 10,000 ÷ 500 = 20 cups per
labor hour. This measures how efficiently labor is being converted into
finished goods.
Question 2
According to the VIRAL framework for competitive advantage, which
characteristic ensures that a capability provides value to the consumer
and is not easily copied by competitors?
A) Aptitude and Lifespan only
B) Viral and Inimitable
C) Value and Inimitable
D) Rare and Aptitude
Correct Answer: C
Rationale: The VIRAL acronym stands for Value, Inimitable, Rare,
Aptitude, and Lifespan. A true competitive advantage must deliver Value
to the customer while being Inimitable – difficult for competitors to
replicate.
Question 3
Which of the following best describes the “Triple Bottom Line” in
operations management?
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A) Profit, Cost, and Quality
B) Speed, Flexibility, and Cost
C) Economic, Social, and Environmental performance (People, Planet,
Profit)
D) Input, Process, and Output
Correct Answer: C
Rationale: Sustainability in operations requires balancing economic
viability (profit), social responsibility (people), and environmental
stewardship (planet). This is known as the Triple Bottom Line.
Question 4
When a company owns its distribution systems and retail outlets to gain
more control over the customer experience, this is known as what type of
integration?
A) Backward Vertical Integration
B) Forward Vertical Integration
C) Horizontal Merger
D) Outsourcing
Correct Answer: B
Rationale: Forward integration involves moving ownership closer to the
end consumer (e.g., distribution or retail). Backward integration would
involve owning suppliers.
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Question 5
Which inventory type consists of parts or materials used to support
production but not a component of the final product?
A) Raw Materials
B) Work‑in‑Process
C) Finished Goods
D) Supplies
Correct Answer: D
Rationale: Supplies are consumed during production (like printer toner
or machine oil) but are not part of the actual finished good.
Question 6
A company wants to reduce costs by producing a higher volume of the
same product on existing equipment. This strategy is best described as
an attempt to achieve what?
A) Economy of scope
B) Economy of scale
C) Economies of learning
D) Economies of integration
Correct Answer: B
WGU C720 OPERATIONS & SUPPLY CHAIN MANAGEMENT –
OBJECTIVE ASSESSMENT (OA) PRACTICE ACTUAL EXAM WITH 200
QUESTIONS- CORRECT VERIFIED AND DETAILED ANSWERS
|ALREADY GRADED A+ || LATEST UPDATE -JUST RELEASED
Operations Management / Supply Chain Management
Exam coverage: -
WGU C720 OA covers operational strategies (SWOT, VIRAL, competitive
advantage), inventory management (EOQ, MRP, JIT, Kanban, ABC,
independent/dependent demand), quality management (TQM, Six
Sigma, Deming, Juran, Crosby, Taguchi, control charts, Pareto, fishbone),
process design, capacity planning, productivity, supply chain logistics,
forecasting, Lean (Kaizen, 5S, value stream mapping), sustainability,
ethics, and global operations.
Section 1: Operations & Business Strategy (Questions 1–25)
Question 1
A local coffee shop wants to evaluate its performance. Last month, it
used 500 labor hours to produce 10,000 cups of coffee. What is the labor
productivity ratio?
A) 0.05 cups per hour
B) 20 cups per hour
C) 10,000 cups
D) 500 hours per cup
, Page 2 of 110
Correct Answer: B
Rationale: Productivity is calculated as Output divided by Input. Output
is 10,000 cups, input is 500 labor hours, so 10,000 ÷ 500 = 20 cups per
labor hour. This measures how efficiently labor is being converted into
finished goods.
Question 2
According to the VIRAL framework for competitive advantage, which
characteristic ensures that a capability provides value to the consumer
and is not easily copied by competitors?
A) Aptitude and Lifespan only
B) Viral and Inimitable
C) Value and Inimitable
D) Rare and Aptitude
Correct Answer: C
Rationale: The VIRAL acronym stands for Value, Inimitable, Rare,
Aptitude, and Lifespan. A true competitive advantage must deliver Value
to the customer while being Inimitable – difficult for competitors to
replicate.
Question 3
Which of the following best describes the “Triple Bottom Line” in
operations management?
, Page 3 of 110
A) Profit, Cost, and Quality
B) Speed, Flexibility, and Cost
C) Economic, Social, and Environmental performance (People, Planet,
Profit)
D) Input, Process, and Output
Correct Answer: C
Rationale: Sustainability in operations requires balancing economic
viability (profit), social responsibility (people), and environmental
stewardship (planet). This is known as the Triple Bottom Line.
Question 4
When a company owns its distribution systems and retail outlets to gain
more control over the customer experience, this is known as what type of
integration?
A) Backward Vertical Integration
B) Forward Vertical Integration
C) Horizontal Merger
D) Outsourcing
Correct Answer: B
Rationale: Forward integration involves moving ownership closer to the
end consumer (e.g., distribution or retail). Backward integration would
involve owning suppliers.
, Page 4 of 110
Question 5
Which inventory type consists of parts or materials used to support
production but not a component of the final product?
A) Raw Materials
B) Work‑in‑Process
C) Finished Goods
D) Supplies
Correct Answer: D
Rationale: Supplies are consumed during production (like printer toner
or machine oil) but are not part of the actual finished good.
Question 6
A company wants to reduce costs by producing a higher volume of the
same product on existing equipment. This strategy is best described as
an attempt to achieve what?
A) Economy of scope
B) Economy of scale
C) Economies of learning
D) Economies of integration
Correct Answer: B
