WGU C215 CHAPTER 12 Questions
with complete solution 2026
Raw materials - correct answer ✔purchased items or extracted materials transformed into
components or products
Components - correct answer ✔parts or subassemblies used in final product
Work-in-process - correct answer ✔items in process throughout the plant
Finished goods - correct answer ✔products sold to customers
Distribution inventory - correct answer ✔finished goods in the distribution system
Anticipation Inventory/ seasonal inventory - correct answer ✔Items built in anticipation of future
demand. Allows company to maintain a level of production strategy
Fluctuation Inventory/ safety or reserve stock - correct answer ✔protects against unexpected demand
variations. assures customer service levels.
lot-size inventory/ cycle stock - correct answer ✔results from the actual purchased. allows for lower
unit costs.
transportation inventory/ pipeline inventory - correct answer ✔items in movement b/w locations.
inventory moves from manufacturer to distribution facilities.
speculative inventory/ hedge inventory - correct answer ✔extra inventory built up or purchased to
protect against some future events. allows for continuous supply.
, MRO inventory - correct answer ✔includes maintenance supplies, spare parts, lubricants, cleaning
agents, and daily operating supplies. facilities day-to-day operations.
items cost - correct answer ✔price pay per item plus any other direct costs associated with getting the
item to the plant
holding cost - correct answer ✔capital, storage and risk costs
ordering cost - correct answer ✔fixed, constant dollar amount incurred for each order placed
shortage costs - correct answer ✔loss of customer goodwill, back-order handling, and lost sales
lot-for-lot - correct answer ✔order exactly what is needed
fixed-order quantity - correct answer ✔order a predetermined amount each time an order is placed
min-max system - correct answer ✔when on hand inventory falls below a predetermined minimum
level, order a quantity that will take the inventory back up to its predetermined maximum level
order n periods - correct answer ✔order enough to satisfy demand for the next n periods
customer service - correct answer ✔measured by any of the following:
- % of orders shipped on schedule
- % of line items shipped on schedule
- % of dollar volume shipped on schedule
- idle time due to component and material shortages
with complete solution 2026
Raw materials - correct answer ✔purchased items or extracted materials transformed into
components or products
Components - correct answer ✔parts or subassemblies used in final product
Work-in-process - correct answer ✔items in process throughout the plant
Finished goods - correct answer ✔products sold to customers
Distribution inventory - correct answer ✔finished goods in the distribution system
Anticipation Inventory/ seasonal inventory - correct answer ✔Items built in anticipation of future
demand. Allows company to maintain a level of production strategy
Fluctuation Inventory/ safety or reserve stock - correct answer ✔protects against unexpected demand
variations. assures customer service levels.
lot-size inventory/ cycle stock - correct answer ✔results from the actual purchased. allows for lower
unit costs.
transportation inventory/ pipeline inventory - correct answer ✔items in movement b/w locations.
inventory moves from manufacturer to distribution facilities.
speculative inventory/ hedge inventory - correct answer ✔extra inventory built up or purchased to
protect against some future events. allows for continuous supply.
, MRO inventory - correct answer ✔includes maintenance supplies, spare parts, lubricants, cleaning
agents, and daily operating supplies. facilities day-to-day operations.
items cost - correct answer ✔price pay per item plus any other direct costs associated with getting the
item to the plant
holding cost - correct answer ✔capital, storage and risk costs
ordering cost - correct answer ✔fixed, constant dollar amount incurred for each order placed
shortage costs - correct answer ✔loss of customer goodwill, back-order handling, and lost sales
lot-for-lot - correct answer ✔order exactly what is needed
fixed-order quantity - correct answer ✔order a predetermined amount each time an order is placed
min-max system - correct answer ✔when on hand inventory falls below a predetermined minimum
level, order a quantity that will take the inventory back up to its predetermined maximum level
order n periods - correct answer ✔order enough to satisfy demand for the next n periods
customer service - correct answer ✔measured by any of the following:
- % of orders shipped on schedule
- % of line items shipped on schedule
- % of dollar volume shipped on schedule
- idle time due to component and material shortages
