WGU C720 Complete OA Prep Guide questions and
answers 2025\2026 A+ Grade
Inputs
- correct answer People, capital, material, money
Outputs
- correct answer Services and goods
Sustainability
- correct answer 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
- 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.
Productivity
- correct answer A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
- correct answer o Raw Materials
o Work In Progress
,o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
- correct answer These parts and materials are obtained from suppliers and are used in the production
process.
Work-in-process (WIP)
- correct answer These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
- correct answer Items are ready to ship to the customer. No more work is required.
Replacement parts inventory
- correct answer These are maintained to replace other parts in machinery or equipment as those parts
wear out
Supplies
- correct answer 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):
- correct answer The portion of inventory that is in the process of being shipped through the distribution
system.
4 Types of Demand
- correct answer o Peak
o Seasonal
o Unexpected
o Chase
, 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.
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.
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.
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.
Safety Stock
- correct answer A cushion of inventory to protect against unexpected demand. In this way, they can
continue to meet customer demand without delays.
Stock Out
- correct answer Occurs when inventory is depleted.
Perpetual Inventory System
- correct answer 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
o Best for big businesses, retail stores, or banks
answers 2025\2026 A+ Grade
Inputs
- correct answer People, capital, material, money
Outputs
- correct answer Services and goods
Sustainability
- correct answer 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
- 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.
Productivity
- correct answer A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
- correct answer o Raw Materials
o Work In Progress
,o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
- correct answer These parts and materials are obtained from suppliers and are used in the production
process.
Work-in-process (WIP)
- correct answer These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
- correct answer Items are ready to ship to the customer. No more work is required.
Replacement parts inventory
- correct answer These are maintained to replace other parts in machinery or equipment as those parts
wear out
Supplies
- correct answer 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):
- correct answer The portion of inventory that is in the process of being shipped through the distribution
system.
4 Types of Demand
- correct answer o Peak
o Seasonal
o Unexpected
o Chase
, 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.
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.
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.
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.
Safety Stock
- correct answer A cushion of inventory to protect against unexpected demand. In this way, they can
continue to meet customer demand without delays.
Stock Out
- correct answer Occurs when inventory is depleted.
Perpetual Inventory System
- correct answer 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
o Best for big businesses, retail stores, or banks
