WGU C720 Operations & Supply Chain
MOST TESTED AND HIGH YIELD
QUESTIONS WITH ANSWERS AND
EXPLANATIONS | RATED GRADE A+ |
GUARANTEED PASS
2026/2027 Frequently Most Tested Questions and 100%
Accurate From Past papers | Graded A+ , Reviewed and
Updated | 100% Guarantee Pass | Latest Exam and Newest
Version!!!
What is the primary goal of supply chain management?
a. To increase inventory levels
b. To reduce costs and improve service levels
c. To eliminate suppliers
d. To maximize production time
✔️ Correct Answer: b. To reduce costs and improve service levels
Rationale:
Supply chain management focuses on optimizing total costs while enhancing service
quality to customers. Option A is incorrect as increasing inventory is not a goal. Option
C is incorrect as eliminating suppliers is not feasible. Option D is incorrect as maximizing
production time alone does not address service levels.
Which activity involves moving materials from one mode of transport directly to another
with minimal storage?
,a. Backward integration
b. Cross-docking
c. Reverse logistics
d. Vendor managed inventory
✔️ Correct Answer: b. Cross-docking
Rationale:
Cross-docking minimizes storage time by quickly transferring goods between inbound
and outbound transport. Backward integration (Option A) involves owning suppliers.
Reverse logistics (Option C) handles returns. Vendor managed inventory (Option D)
involves suppliers managing inventory.
What does ERP stand for and why is it important?
a. External Resource Planning – for supplier contracts
b. Enterprise Resource Planning – integration across departments
c. Enhanced Reorder Points – for inventory control
d. Error Reduction Process – for quality management
✔️ Correct Answer: b. Enterprise Resource Planning – integration across departments
Rationale:
ERP improves data accuracy and visibility across functions to support decision-making.
Options A, C, and D are incorrect definitions.
Which term describes the total time from placing a purchase order until received?
a. Lead time
b. Throughput time
c. Cycle time
d. Setup time
✔️ Correct Answer: a. Lead time
Rationale:
Lead time includes order processing, production, and delivery time. Throughput time
,(Option B) is the total time to produce a product. Cycle time (Option C) is the time
between completing units. Setup time (Option D) is the time to prepare equipment.
The bullwhip effect refers to:
a. Stable inventory levels
b. Increasing demand variability up the supply chain
c. Reduced transportation lead time
d. Increased forecast accuracy
✔️ Correct Answer: b. Increasing demand variability up the supply chain
Rationale:
Small changes in customer demand can cause larger swings upstream. Options A, C, and
D describe opposite effects.
Backward vertical integration occurs when a company:
a. Outsources production
b. Owns its suppliers
c. Focuses on lean operations
d. Reduces workforce
✔️ Correct Answer: b. Owns its suppliers
Rationale:
Backward integration brings supplier functions in-house. Option A describes
outsourcing. Option C describes lean operations. Option D describes workforce
reduction.
Which of the following best describes reverse logistics?
a. Moving products forward to customers
b. Returning defective products for reuse or recycling
, c. Outsourcing inventory management
d. Planning future product demand
✔️ Correct Answer: b. Returning defective products for reuse or recycling
Rationale:
Reverse logistics handles returns and recovery of products. Option A describes forward
logistics. Option C describes outsourcing. Option D describes forecasting.
Lean supply chains focus on:
a. Keeping large inventories
b. Reducing costs and minimizing waste
c. Increasing product variety
d. Slowing production speed
✔️ Correct Answer: b. Reducing costs and minimizing waste
Rationale:
Lean aims to minimize non-value-added activities and costs. Options A, C, and D are
contrary to lean principles.
The SCOR model does NOT include which of the following elements?
a. Plan
b. Make
c. Dispose
d. Return
✔️ Correct Answer: c. Dispose
Rationale:
The SCOR model includes Plan, Source, Make, Deliver, and Return stages. Dispose is not
part of the SCOR model.
MOST TESTED AND HIGH YIELD
QUESTIONS WITH ANSWERS AND
EXPLANATIONS | RATED GRADE A+ |
GUARANTEED PASS
2026/2027 Frequently Most Tested Questions and 100%
Accurate From Past papers | Graded A+ , Reviewed and
Updated | 100% Guarantee Pass | Latest Exam and Newest
Version!!!
What is the primary goal of supply chain management?
a. To increase inventory levels
b. To reduce costs and improve service levels
c. To eliminate suppliers
d. To maximize production time
✔️ Correct Answer: b. To reduce costs and improve service levels
Rationale:
Supply chain management focuses on optimizing total costs while enhancing service
quality to customers. Option A is incorrect as increasing inventory is not a goal. Option
C is incorrect as eliminating suppliers is not feasible. Option D is incorrect as maximizing
production time alone does not address service levels.
Which activity involves moving materials from one mode of transport directly to another
with minimal storage?
,a. Backward integration
b. Cross-docking
c. Reverse logistics
d. Vendor managed inventory
✔️ Correct Answer: b. Cross-docking
Rationale:
Cross-docking minimizes storage time by quickly transferring goods between inbound
and outbound transport. Backward integration (Option A) involves owning suppliers.
Reverse logistics (Option C) handles returns. Vendor managed inventory (Option D)
involves suppliers managing inventory.
What does ERP stand for and why is it important?
a. External Resource Planning – for supplier contracts
b. Enterprise Resource Planning – integration across departments
c. Enhanced Reorder Points – for inventory control
d. Error Reduction Process – for quality management
✔️ Correct Answer: b. Enterprise Resource Planning – integration across departments
Rationale:
ERP improves data accuracy and visibility across functions to support decision-making.
Options A, C, and D are incorrect definitions.
Which term describes the total time from placing a purchase order until received?
a. Lead time
b. Throughput time
c. Cycle time
d. Setup time
✔️ Correct Answer: a. Lead time
Rationale:
Lead time includes order processing, production, and delivery time. Throughput time
,(Option B) is the total time to produce a product. Cycle time (Option C) is the time
between completing units. Setup time (Option D) is the time to prepare equipment.
The bullwhip effect refers to:
a. Stable inventory levels
b. Increasing demand variability up the supply chain
c. Reduced transportation lead time
d. Increased forecast accuracy
✔️ Correct Answer: b. Increasing demand variability up the supply chain
Rationale:
Small changes in customer demand can cause larger swings upstream. Options A, C, and
D describe opposite effects.
Backward vertical integration occurs when a company:
a. Outsources production
b. Owns its suppliers
c. Focuses on lean operations
d. Reduces workforce
✔️ Correct Answer: b. Owns its suppliers
Rationale:
Backward integration brings supplier functions in-house. Option A describes
outsourcing. Option C describes lean operations. Option D describes workforce
reduction.
Which of the following best describes reverse logistics?
a. Moving products forward to customers
b. Returning defective products for reuse or recycling
, c. Outsourcing inventory management
d. Planning future product demand
✔️ Correct Answer: b. Returning defective products for reuse or recycling
Rationale:
Reverse logistics handles returns and recovery of products. Option A describes forward
logistics. Option C describes outsourcing. Option D describes forecasting.
Lean supply chains focus on:
a. Keeping large inventories
b. Reducing costs and minimizing waste
c. Increasing product variety
d. Slowing production speed
✔️ Correct Answer: b. Reducing costs and minimizing waste
Rationale:
Lean aims to minimize non-value-added activities and costs. Options A, C, and D are
contrary to lean principles.
The SCOR model does NOT include which of the following elements?
a. Plan
b. Make
c. Dispose
d. Return
✔️ Correct Answer: c. Dispose
Rationale:
The SCOR model includes Plan, Source, Make, Deliver, and Return stages. Dispose is not
part of the SCOR model.
