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WGU C215 Operations Management Objective Assessment
| Latest Update | Comprehensive Practice Questions &
Answers | Operations Management OA Study Guide &
Exam Preparation PDF
Question 1: A manufacturing company is evaluating its quality costs and
discovers significant expenses related to product recalls, warranty claims, and
customer complaints. These costs are classified as which type of quality cost?
A) Prevention costs
B) Appraisal costs
C) Internal failure costs
D) External failure costs
D) External failure costs External failure costs are associated with defects
discovered after products reach customers, including warranty claims,
recalls, and lost customer goodwill.
Question 2: When a supplier is involved early in the new product design
process to provide expertise on materials and manufacturing capabilities, this
practice is referred to as:
A) Vertical integration
B) Backward integration
C) Early supplier involvement
D) Forward integration
,2
C) Early supplier involvement Early supplier involvement (ESI) brings
critical suppliers into the design phase to leverage their expertise, reduce costs,
and improve product quality through collaborative development.
Question 3: A company that owns and controls its raw material sources and
component suppliers is practicing which type of integration strategy?
A) Forward integration
B) Horizontal integration
C) Backward integration
D) Market integration
C) Backward integration Backward integration occurs when a company
acquires or controls suppliers that provide raw materials or components,
moving ownership upstream in the supply chain.
Question 4: The phenomenon where inaccurate or distorted demand
information propagates through the supply chain, causing inefficiencies and
inventory problems, is known as:
A) The multiplier effect
B) Supply chain velocity
C) The bullwhip effect
D) Demand amplification
C) The bullwhip effect The bullwhip effect describes how small fluctuations in
consumer demand become increasingly distorted and amplified as they move
upstream through the supply chain.
,3
Question 5: Which quality tool is a schematic diagram that shows the sequence
of steps involved in a process from beginning to end?
A) Histogram
B) Flowchart
C) Pareto diagram
D) Control chart
B) Flowchart Flowcharts provide visual representations of process steps,
helping identify bottlenecks, redundancies, and opportunities for
improvement by mapping the entire workflow sequence.
Question 6: A distribution strategy that eliminates storage and order picking
functions by receiving products and immediately loading them onto outbound
trucks is called:
A) Crossdocking
B) Warehousing
C) Postponement
D) Consolidation
A) Crossdocking Crossdocking eliminates storage and order picking by
transferring incoming shipments directly to outgoing vehicles, reducing
handling costs and improving throughput efficiency.
Question 7: The Japanese award established to recognize companies that
demonstrate excellence in quality improvement efforts is the:
A) Malcolm Baldrige Award
B) ISO 9000 Certification
, 4
C) Deming Prize
D) Kaizen Award
C) Deming Prize The Deming Prize, established in Japan, recognizes
organizations that achieve significant quality improvements through
implementation of total quality management principles.
Question 8: When companies receive referral fees for directing business to
affiliates, this represents which revenue model?
A) Advertising revenue model
B) Transaction fee model
C) Affiliate revenue model
D) Subscription revenue model
C) Affiliate revenue model The affiliate revenue model compensates
companies for referring customers to other businesses, typically through
commission-based arrangements for sales generated through referrals.
Question 9: The quality philosophy that emphasizes uncovering problems at
their source and correcting them immediately is known as:
A) Quality circles
B) Continuous improvement
C) Quality at the source
D) Benchmarking
C) Quality at the source Quality at the source emphasizes detecting and
correcting defects at the point where they occur rather than through end-of-
line inspection, promoting immediate problem resolution.
WGU C215 Operations Management Objective Assessment
| Latest Update | Comprehensive Practice Questions &
Answers | Operations Management OA Study Guide &
Exam Preparation PDF
Question 1: A manufacturing company is evaluating its quality costs and
discovers significant expenses related to product recalls, warranty claims, and
customer complaints. These costs are classified as which type of quality cost?
A) Prevention costs
B) Appraisal costs
C) Internal failure costs
D) External failure costs
D) External failure costs External failure costs are associated with defects
discovered after products reach customers, including warranty claims,
recalls, and lost customer goodwill.
Question 2: When a supplier is involved early in the new product design
process to provide expertise on materials and manufacturing capabilities, this
practice is referred to as:
A) Vertical integration
B) Backward integration
C) Early supplier involvement
D) Forward integration
,2
C) Early supplier involvement Early supplier involvement (ESI) brings
critical suppliers into the design phase to leverage their expertise, reduce costs,
and improve product quality through collaborative development.
Question 3: A company that owns and controls its raw material sources and
component suppliers is practicing which type of integration strategy?
A) Forward integration
B) Horizontal integration
C) Backward integration
D) Market integration
C) Backward integration Backward integration occurs when a company
acquires or controls suppliers that provide raw materials or components,
moving ownership upstream in the supply chain.
Question 4: The phenomenon where inaccurate or distorted demand
information propagates through the supply chain, causing inefficiencies and
inventory problems, is known as:
A) The multiplier effect
B) Supply chain velocity
C) The bullwhip effect
D) Demand amplification
C) The bullwhip effect The bullwhip effect describes how small fluctuations in
consumer demand become increasingly distorted and amplified as they move
upstream through the supply chain.
,3
Question 5: Which quality tool is a schematic diagram that shows the sequence
of steps involved in a process from beginning to end?
A) Histogram
B) Flowchart
C) Pareto diagram
D) Control chart
B) Flowchart Flowcharts provide visual representations of process steps,
helping identify bottlenecks, redundancies, and opportunities for
improvement by mapping the entire workflow sequence.
Question 6: A distribution strategy that eliminates storage and order picking
functions by receiving products and immediately loading them onto outbound
trucks is called:
A) Crossdocking
B) Warehousing
C) Postponement
D) Consolidation
A) Crossdocking Crossdocking eliminates storage and order picking by
transferring incoming shipments directly to outgoing vehicles, reducing
handling costs and improving throughput efficiency.
Question 7: The Japanese award established to recognize companies that
demonstrate excellence in quality improvement efforts is the:
A) Malcolm Baldrige Award
B) ISO 9000 Certification
, 4
C) Deming Prize
D) Kaizen Award
C) Deming Prize The Deming Prize, established in Japan, recognizes
organizations that achieve significant quality improvements through
implementation of total quality management principles.
Question 8: When companies receive referral fees for directing business to
affiliates, this represents which revenue model?
A) Advertising revenue model
B) Transaction fee model
C) Affiliate revenue model
D) Subscription revenue model
C) Affiliate revenue model The affiliate revenue model compensates
companies for referring customers to other businesses, typically through
commission-based arrangements for sales generated through referrals.
Question 9: The quality philosophy that emphasizes uncovering problems at
their source and correcting them immediately is known as:
A) Quality circles
B) Continuous improvement
C) Quality at the source
D) Benchmarking
C) Quality at the source Quality at the source emphasizes detecting and
correcting defects at the point where they occur rather than through end-of-
line inspection, promoting immediate problem resolution.
