(WGU) C720 Operations and Supply
Chain Management - Task 1 Case
Study|2025 Update with complete
solution.
Capacity Planning ✔✔CORRECT ANSWER✔✔Planning an organization's
ability to deliver at capacity; significant capital is usually involved to
build facilities and purchase equipment; require careful consideration
of long-term objectives, current demand, and long-term demand.
Product Mix ✔✔CORRECT ANSWER✔✔Different products produced on
the same equipment.
System Capacity ✔✔CORRECT ANSWER✔✔The ability of an
organization to produce a sufficient number of goods to meet customer
demands.
Department ✔✔CORRECT ANSWER✔✔A portion of the production
system.
Product Layout ✔✔CORRECT ANSWER✔✔A process that is
characterized by high demand for the same or similar products; for
,example, the process of continuously producing paper along the supply
chain; this system often measures output as the number of items
produced per day.
Process Layout ✔✔CORRECT ANSWER✔✔A process that is
characterized by the production of many different products with the
same equipment and low volume for each product; an example is a car
repair shop that offer a variety of services; this system often measures
output as completed orders per day.
Design Capacity ✔✔CORRECT ANSWER✔✔The maximum achievable
output of a process under ideal conditions for a short period of time.
Effective Capacity ✔✔CORRECT ANSWER✔✔The maximum achievable
output given the product mix, equipment changeovers, and downtime.
Capacity Utilization ✔✔CORRECT ANSWER✔✔Actual Output / Design
Capacity; used to measure how much capacity is actually being used on
an average basis.
Actual Output ✔✔CORRECT ANSWER✔✔The effective capacity minus
additional factors that reduce production, such as a fuel stop.
,Efficiency ✔✔CORRECT ANSWER✔✔Actual Output / Effective Capacity;
used to measure how much effective capacity is being used to achieve
output.
Eliyahu Goldratt ✔✔CORRECT ANSWER✔✔An Israeli physicist who
developed the Theory of Constraints (TOC).
Theory of Constraints (TOC) ✔✔CORRECT ANSWER✔✔A five-step
process that helps a firm optimal throughput by identifying and fixing
bottlenecks; includes 1) finding constraints, 2) exploit the constraints
(get at 100% capacity), 3) subordinate everything else to decision
(communicate to everyone), 4) elevate the constraint (how to increase
capacity), and 5) repeat (find a different bottleneck, for continuous
improvement).
Throughput ✔✔CORRECT ANSWER✔✔The state where output is as
close to the system capacity as possible.
Facility Location ✔✔CORRECT ANSWER✔✔The placement of a facility
with regards to a company's customers, suppliers, and other facilities;
should be a long-term, strategic investment.
Regional Facility Strategy ✔✔CORRECT ANSWER✔✔Requires that each
production facility has a defined marketing area that produces a
complete line of products for that area; used when customer
convenience is important, or when transportation costs are high.
, Product Facility Strategy ✔✔CORRECT ANSWER✔✔One facility is
responsible for producing one product or product line and shipping it
throughout the world; good for expensive, small, specialized products
that require many resources to produce.
Variable Costs ✔✔CORRECT ANSWER✔✔Costs which change and can
be adjusted as business conditions change.
Total Costs ✔✔CORRECT ANSWER✔✔(Variable Costs per Unit)*(The
Number of Units Produced) + Fixed Costs
Time Value of Money ✔✔CORRECT ANSWER✔✔One dollar received
today is worth more than one dollar received at some future point,
such as through investment.
Process Selection ✔✔CORRECT ANSWER✔✔Determining the most
appropriate method of completing a task; volume, cost, and profit are
three critical elements when selecting a process.
Volume ✔✔CORRECT ANSWER✔✔Applying the appropriate mix of
technology to leverage the organization's workforce.
Leverage ✔✔CORRECT ANSWER✔✔Making a workforce more
productive using better tools.
Chain Management - Task 1 Case
Study|2025 Update with complete
solution.
Capacity Planning ✔✔CORRECT ANSWER✔✔Planning an organization's
ability to deliver at capacity; significant capital is usually involved to
build facilities and purchase equipment; require careful consideration
of long-term objectives, current demand, and long-term demand.
Product Mix ✔✔CORRECT ANSWER✔✔Different products produced on
the same equipment.
System Capacity ✔✔CORRECT ANSWER✔✔The ability of an
organization to produce a sufficient number of goods to meet customer
demands.
Department ✔✔CORRECT ANSWER✔✔A portion of the production
system.
Product Layout ✔✔CORRECT ANSWER✔✔A process that is
characterized by high demand for the same or similar products; for
,example, the process of continuously producing paper along the supply
chain; this system often measures output as the number of items
produced per day.
Process Layout ✔✔CORRECT ANSWER✔✔A process that is
characterized by the production of many different products with the
same equipment and low volume for each product; an example is a car
repair shop that offer a variety of services; this system often measures
output as completed orders per day.
Design Capacity ✔✔CORRECT ANSWER✔✔The maximum achievable
output of a process under ideal conditions for a short period of time.
Effective Capacity ✔✔CORRECT ANSWER✔✔The maximum achievable
output given the product mix, equipment changeovers, and downtime.
Capacity Utilization ✔✔CORRECT ANSWER✔✔Actual Output / Design
Capacity; used to measure how much capacity is actually being used on
an average basis.
Actual Output ✔✔CORRECT ANSWER✔✔The effective capacity minus
additional factors that reduce production, such as a fuel stop.
,Efficiency ✔✔CORRECT ANSWER✔✔Actual Output / Effective Capacity;
used to measure how much effective capacity is being used to achieve
output.
Eliyahu Goldratt ✔✔CORRECT ANSWER✔✔An Israeli physicist who
developed the Theory of Constraints (TOC).
Theory of Constraints (TOC) ✔✔CORRECT ANSWER✔✔A five-step
process that helps a firm optimal throughput by identifying and fixing
bottlenecks; includes 1) finding constraints, 2) exploit the constraints
(get at 100% capacity), 3) subordinate everything else to decision
(communicate to everyone), 4) elevate the constraint (how to increase
capacity), and 5) repeat (find a different bottleneck, for continuous
improvement).
Throughput ✔✔CORRECT ANSWER✔✔The state where output is as
close to the system capacity as possible.
Facility Location ✔✔CORRECT ANSWER✔✔The placement of a facility
with regards to a company's customers, suppliers, and other facilities;
should be a long-term, strategic investment.
Regional Facility Strategy ✔✔CORRECT ANSWER✔✔Requires that each
production facility has a defined marketing area that produces a
complete line of products for that area; used when customer
convenience is important, or when transportation costs are high.
, Product Facility Strategy ✔✔CORRECT ANSWER✔✔One facility is
responsible for producing one product or product line and shipping it
throughout the world; good for expensive, small, specialized products
that require many resources to produce.
Variable Costs ✔✔CORRECT ANSWER✔✔Costs which change and can
be adjusted as business conditions change.
Total Costs ✔✔CORRECT ANSWER✔✔(Variable Costs per Unit)*(The
Number of Units Produced) + Fixed Costs
Time Value of Money ✔✔CORRECT ANSWER✔✔One dollar received
today is worth more than one dollar received at some future point,
such as through investment.
Process Selection ✔✔CORRECT ANSWER✔✔Determining the most
appropriate method of completing a task; volume, cost, and profit are
three critical elements when selecting a process.
Volume ✔✔CORRECT ANSWER✔✔Applying the appropriate mix of
technology to leverage the organization's workforce.
Leverage ✔✔CORRECT ANSWER✔✔Making a workforce more
productive using better tools.
