WGU C720 Complete OA Prep Guide|
2025/2026 UPDATE | QUESTIONS AND
ANSWERS | WITH COMPLETE SOLUTION!!
Work-in-process (WIP) - ANSWERS-These are partly finished parts,
components, sub-assemblies, or modules.
Finished Goods - ANSWERS-Items are ready to ship to the customer. No
more work is required.
Replacement parts inventory - ANSWERS-These are maintained to replace
other parts in machinery or equipment as those parts wear out
Supplies - ANSWERS-Parts or materials are used to support the production
process but not usually a component of the product. These items, such as
lubricant and cutting tools, are consumed in the production process.
Transportation (pipeline): - ANSWERS-The portion of inventory that is in the
process of being shipped through the distribution system.
4 Types of Demand - ANSWERS-o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand - ANSWERS-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.
Seasonal Demand - ANSWERS-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.
Unexpected Demand - ANSWERS-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.
Chase Demand - ANSWERS-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.
Inputs - ANSWERS-People, capital, material, money
Outputs - ANSWERS-Services and goods
Sustainability - ANSWERS-Defined broadly in operations and supply chain
management as the ethical issues an organization faces to balance financial
performance while maintaining social responsibility standards and a
responsible environmental profile.
VIRAL - ANSWERS-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.
Productivity - ANSWERS-A mathematical calculation; it is the ratio of the
outputs achieved divided by the inputs consumed to achieve those outputs.
6 Types of Inventory - ANSWERS-o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - ANSWERS-These parts and materials are obtained from
suppliers and are used in the production process.
Safety Stock - ANSWERS-A cushion of inventory to protect against
unexpected demand. In this way, they can continue to meet customer
demand without delays.
Stock Out - ANSWERS-Occurs when inventory is depleted.
Perpetual Inventory System - ANSWERS-Continuously monitors inventory
levels and is also called a continuous review system. Requires human input
(i.e. cashier) and the ordering of more inventory is triggered by reorder point.
o Requires an exact inventory balance at all times
2025/2026 UPDATE | QUESTIONS AND
ANSWERS | WITH COMPLETE SOLUTION!!
Work-in-process (WIP) - ANSWERS-These are partly finished parts,
components, sub-assemblies, or modules.
Finished Goods - ANSWERS-Items are ready to ship to the customer. No
more work is required.
Replacement parts inventory - ANSWERS-These are maintained to replace
other parts in machinery or equipment as those parts wear out
Supplies - ANSWERS-Parts or materials are used to support the production
process but not usually a component of the product. These items, such as
lubricant and cutting tools, are consumed in the production process.
Transportation (pipeline): - ANSWERS-The portion of inventory that is in the
process of being shipped through the distribution system.
4 Types of Demand - ANSWERS-o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand - ANSWERS-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.
Seasonal Demand - ANSWERS-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.
Unexpected Demand - ANSWERS-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.
Chase Demand - ANSWERS-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.
Inputs - ANSWERS-People, capital, material, money
Outputs - ANSWERS-Services and goods
Sustainability - ANSWERS-Defined broadly in operations and supply chain
management as the ethical issues an organization faces to balance financial
performance while maintaining social responsibility standards and a
responsible environmental profile.
VIRAL - ANSWERS-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.
Productivity - ANSWERS-A mathematical calculation; it is the ratio of the
outputs achieved divided by the inputs consumed to achieve those outputs.
6 Types of Inventory - ANSWERS-o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - ANSWERS-These parts and materials are obtained from
suppliers and are used in the production process.
Safety Stock - ANSWERS-A cushion of inventory to protect against
unexpected demand. In this way, they can continue to meet customer
demand without delays.
Stock Out - ANSWERS-Occurs when inventory is depleted.
Perpetual Inventory System - ANSWERS-Continuously monitors inventory
levels and is also called a continuous review system. Requires human input
(i.e. cashier) and the ordering of more inventory is triggered by reorder point.
o Requires an exact inventory balance at all times
