WGU C720 Complete OA Prep Guide (New
2026/ 2027 Update) Questions & Answers
{Grade A} 100% Correct (Verified
Solutions)
Assembly Line - correct answer Process selection most appropriate to produce high
volume with little to no variation.
Uses product facility layout (i.e. car manufacture)
Continuous Flow - correct answer Process selection most appropriate to produce high
volume with no variation.
Uses product facility layout (i.e. oil refinery). Also called continuous inventory flow
Batch Flow - correct answer Process selection most appropriate to produce high
volume with some variation.
Uses product facility layout: requires equipment or tool changes
,Job Shop - correct answer Process selection most appropriate to produce low volume
with little to high variation.
Uses process facility layout (i.e. customized furniture)
Economies of scale - correct answer The ability to produce more goods at a lower cost
by better utilizing the same fixed costs.
Economies of Scope - correct 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.
Forecasting - correct answer Process of making predictions of the future based on
past and present data and most commonly by analysis of trends.
Steps include:
,o Determine the objectives of the forecast
o Develop and test model
o Applying the model - Consider real-world constraints on the model's application
o Revising and evaluating the forecast
Independent demand - correct answer Items usually include finished products, such as
the completed tricycle or replacement parts sold to customers.
Dependent demand - correct answer Usually demand for an item that is generated by
a company's production process.
Bill of materials (BOM) - correct answer Lists the materials needed and the quantities
of each.
Qualitative Methods - correct answer Forecasting techniques are subjective, based on
the opinion and judgment of consumers and experts. They are appropriate when past
data are not available. Most suitable for new products or products without historical
data.
, Buildup method, Survey method, Test markets, Panel of experts
Buildup Method - correct answer Starting at the bottom of the organization and
working to the top to solicit info to determine forecast
Survey Method - correct answer Using questionnaires, phone interviews, or the
internet to solicit info to determine forecast
Test Markets - correct answer Conducting a trial run with the product in a market
region to determine forecast
Panel of Experts (Delphi Technique) - correct answer Soliciting info from people who
are knowledgeable about the subject being considered to determine the forecast
Quantitative Methods (time series) - correct answer Forecasting technique using
historical data to predict future. They are appropriate to use when past numerical data
2026/ 2027 Update) Questions & Answers
{Grade A} 100% Correct (Verified
Solutions)
Assembly Line - correct answer Process selection most appropriate to produce high
volume with little to no variation.
Uses product facility layout (i.e. car manufacture)
Continuous Flow - correct answer Process selection most appropriate to produce high
volume with no variation.
Uses product facility layout (i.e. oil refinery). Also called continuous inventory flow
Batch Flow - correct answer Process selection most appropriate to produce high
volume with some variation.
Uses product facility layout: requires equipment or tool changes
,Job Shop - correct answer Process selection most appropriate to produce low volume
with little to high variation.
Uses process facility layout (i.e. customized furniture)
Economies of scale - correct answer The ability to produce more goods at a lower cost
by better utilizing the same fixed costs.
Economies of Scope - correct 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.
Forecasting - correct answer Process of making predictions of the future based on
past and present data and most commonly by analysis of trends.
Steps include:
,o Determine the objectives of the forecast
o Develop and test model
o Applying the model - Consider real-world constraints on the model's application
o Revising and evaluating the forecast
Independent demand - correct answer Items usually include finished products, such as
the completed tricycle or replacement parts sold to customers.
Dependent demand - correct answer Usually demand for an item that is generated by
a company's production process.
Bill of materials (BOM) - correct answer Lists the materials needed and the quantities
of each.
Qualitative Methods - correct answer Forecasting techniques are subjective, based on
the opinion and judgment of consumers and experts. They are appropriate when past
data are not available. Most suitable for new products or products without historical
data.
, Buildup method, Survey method, Test markets, Panel of experts
Buildup Method - correct answer Starting at the bottom of the organization and
working to the top to solicit info to determine forecast
Survey Method - correct answer Using questionnaires, phone interviews, or the
internet to solicit info to determine forecast
Test Markets - correct answer Conducting a trial run with the product in a market
region to determine forecast
Panel of Experts (Delphi Technique) - correct answer Soliciting info from people who
are knowledgeable about the subject being considered to determine the forecast
Quantitative Methods (time series) - correct answer Forecasting technique using
historical data to predict future. They are appropriate to use when past numerical data
