WGU C720 OPERATIONS AND SUPPLY CHAIN MANAGEMENT QUESTIONS & ANS… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C720 Operations and
Supply Chain Management
Questions & Answers 2026-
2027 | Complete OA Review
Verified Answers Exam Ready With Rationales
153 QUESTIONS
DOCUMENT OVERVIEW
This document provides 153 verified questions with correct answers related to operations and supply chain
management, offering concise explanations for each response. It serves as a comprehensive resource for
mastering the subject area of supply chain dynamics. Students can utilize this material for effective study,
review, and preparation for certification exams.
CONTENTS
• Demand Forecasting • Inventory Management
• Quality Management • Process Improvement
• Supply Chain Fundamentals • Capacity Planning
• Production Strategies • Material Requirements Planning
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 153
Inputs
Page 1
, CORRECT ANSWER
People, capital, material, money
Q2 QUESTION 2 OF 153
VIRAL
CORRECT ANSWER
Acronym - A framework for competitive advantage.
Viral, Inimitable, Rare, Aptitude, Lifespan.
The advantage must provide Value to consumers; it should be Inimitable (not easily imitated), Rare, and an
organization must have the Aptitude (capability) and Lifespan (sustainability) to earn appropriate returns on the
advantage.
Q3 QUESTION 3 OF 153
4 Types of Demand
CORRECT ANSWER
o Peak
o Seasonal
o Unexpected
o Chase
Q4 QUESTION 4 OF 153
Peak Demand
CORRECT ANSWER
Demand which occurs in response to planned events such as advertising, publicity or promotion. The release of a
popular game franchise's latest version often causes peak demand for a few days or weeks.
Q5 QUESTION 5 OF 153
Seasonal Demand
CORRECT ANSWER
Demand as shoppers adjust their purchase velocity in line with holidays, especially Christmas. But Halloween,
Thanksgiving and even St. Patrick's Day also create seasonal demand for certain kinds of merchandise.
Page 2
, Q6 QUESTION 6 OF 153
Unexpected Demand
CORRECT ANSWER
Demand which occurs due to a usually-unexpected event. For example, an underdog school may upset a favorite
during the NCAA's basketball tournament, causing a run on their merchandise.
Q7 QUESTION 7 OF 153
Chase Demand
CORRECT ANSWER
Demand that occurs when a company has to adjust production by rates to match demand by varying the workforce
and using overtime. Companies vary the workforce by adding or reducing the number of employees on duty at any
given time. And they may choose to provide overtime by asking workers to stay on the job beyond their normally
scheduled time.
Q8 QUESTION 8 OF 153
Quantity discount model
CORRECT ANSWER
A discount offered in price for ordering above a specified amount
Q9 QUESTION 9 OF 153
Six Sigma DMADV
CORRECT ANSWER
This is used specifically for new products or processes and is also known as Design for Six Sigma (DFSS).
The five steps of DMADV are summarized as:
o Define
o Measure
o Analyze
o Design
o Verify.
Q10 QUESTION 10 OF 153
The Theory of Constraints 5-step thinking process
Page 3
, CORRECT ANSWER
1. Identify the system's constraint(s): Determine the bottleneck of improvement opportunity
2. Exploit the system's constraint: Ensure the bottleneck is at 100% capacity utilization or throughput.
3. Subordinate everything else to the above decision: Communicate the bottleneck
4. Elevate the system's constraint: Determine how to increase the bottleneck's capacity
5. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a system's constraint.
As indicated in the 5th step of the thinking process, TOC is about continuous improvement. Once one bottleneck
has been identified and overcome, another constraint will become a bottleneck to the system.
Q11 QUESTION 11 OF 153
Independent demand
CORRECT ANSWER
Items usually include finished products, such as the completed tricycle or replacement parts sold to customers.
Q12 QUESTION 12 OF 153
Dependent demand
CORRECT ANSWER
Usually demand for an item that is generated by a company's production process.
Q13 QUESTION 13 OF 153
Lead time
CORRECT ANSWER
Amount of time it takes to plan, produce, and deliver a product
Q14 QUESTION 14 OF 153
Outputs
CORRECT ANSWER
Services and goods
Q15 QUESTION 15 OF 153
6 Types of Inventory
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C720 Operations and
Supply Chain Management
Questions & Answers 2026-
2027 | Complete OA Review
Verified Answers Exam Ready With Rationales
153 QUESTIONS
DOCUMENT OVERVIEW
This document provides 153 verified questions with correct answers related to operations and supply chain
management, offering concise explanations for each response. It serves as a comprehensive resource for
mastering the subject area of supply chain dynamics. Students can utilize this material for effective study,
review, and preparation for certification exams.
CONTENTS
• Demand Forecasting • Inventory Management
• Quality Management • Process Improvement
• Supply Chain Fundamentals • Capacity Planning
• Production Strategies • Material Requirements Planning
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 153
Inputs
Page 1
, CORRECT ANSWER
People, capital, material, money
Q2 QUESTION 2 OF 153
VIRAL
CORRECT ANSWER
Acronym - A framework for competitive advantage.
Viral, Inimitable, Rare, Aptitude, Lifespan.
The advantage must provide Value to consumers; it should be Inimitable (not easily imitated), Rare, and an
organization must have the Aptitude (capability) and Lifespan (sustainability) to earn appropriate returns on the
advantage.
Q3 QUESTION 3 OF 153
4 Types of Demand
CORRECT ANSWER
o Peak
o Seasonal
o Unexpected
o Chase
Q4 QUESTION 4 OF 153
Peak Demand
CORRECT ANSWER
Demand which occurs in response to planned events such as advertising, publicity or promotion. The release of a
popular game franchise's latest version often causes peak demand for a few days or weeks.
Q5 QUESTION 5 OF 153
Seasonal Demand
CORRECT ANSWER
Demand as shoppers adjust their purchase velocity in line with holidays, especially Christmas. But Halloween,
Thanksgiving and even St. Patrick's Day also create seasonal demand for certain kinds of merchandise.
Page 2
, Q6 QUESTION 6 OF 153
Unexpected Demand
CORRECT ANSWER
Demand which occurs due to a usually-unexpected event. For example, an underdog school may upset a favorite
during the NCAA's basketball tournament, causing a run on their merchandise.
Q7 QUESTION 7 OF 153
Chase Demand
CORRECT ANSWER
Demand that occurs when a company has to adjust production by rates to match demand by varying the workforce
and using overtime. Companies vary the workforce by adding or reducing the number of employees on duty at any
given time. And they may choose to provide overtime by asking workers to stay on the job beyond their normally
scheduled time.
Q8 QUESTION 8 OF 153
Quantity discount model
CORRECT ANSWER
A discount offered in price for ordering above a specified amount
Q9 QUESTION 9 OF 153
Six Sigma DMADV
CORRECT ANSWER
This is used specifically for new products or processes and is also known as Design for Six Sigma (DFSS).
The five steps of DMADV are summarized as:
o Define
o Measure
o Analyze
o Design
o Verify.
Q10 QUESTION 10 OF 153
The Theory of Constraints 5-step thinking process
Page 3
, CORRECT ANSWER
1. Identify the system's constraint(s): Determine the bottleneck of improvement opportunity
2. Exploit the system's constraint: Ensure the bottleneck is at 100% capacity utilization or throughput.
3. Subordinate everything else to the above decision: Communicate the bottleneck
4. Elevate the system's constraint: Determine how to increase the bottleneck's capacity
5. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a system's constraint.
As indicated in the 5th step of the thinking process, TOC is about continuous improvement. Once one bottleneck
has been identified and overcome, another constraint will become a bottleneck to the system.
Q11 QUESTION 11 OF 153
Independent demand
CORRECT ANSWER
Items usually include finished products, such as the completed tricycle or replacement parts sold to customers.
Q12 QUESTION 12 OF 153
Dependent demand
CORRECT ANSWER
Usually demand for an item that is generated by a company's production process.
Q13 QUESTION 13 OF 153
Lead time
CORRECT ANSWER
Amount of time it takes to plan, produce, and deliver a product
Q14 QUESTION 14 OF 153
Outputs
CORRECT ANSWER
Services and goods
Q15 QUESTION 15 OF 153
6 Types of Inventory
Page 4
