WGU C720 OA UPDATED EXAMS SCRIPT
QUESTIONS AND ANSWERS SURE A+
✔✔ABC analysis - ✔✔Has been developed to determine which inventory items should
receive the highest level of control. By multiplying the dollar value of each item by its
annual usage, a dollar usage value can be obtained. Dollar usage follows the Pareto
Principle in that frequently, only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of the dollar usage.
This principle leads to the _____ classification, which is based on focusing efforts where
the payoff is highest
✔✔Pareto Principle - ✔✔Only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of the dollar usage.
This principle leads to the ABC classification, which is based on focusing efforts where
the payoff is highest
✔✔Economic Order Quantity (EOQ) - ✔✔For inventory that doesn't require production,
when demand is constant and known, when cost per unit does not depend on order
quantity.
Most appropriate for retail stores or companies that order finished goods.
,✔✔Economic Production Quantity (EPQ) - ✔✔For inventory that will be used in
production, When incremental ordering and depletion of inventory is allowed, Also
called production order quantity.
Most appropriate for manufacturing and production companies
✔✔The goal of firms using the EOQ & EPQ model - ✔✔Minimize the total annual costs
of ordering and holding inventory by varying the order quantity.
✔✔Quantity discount model - ✔✔A discount offered in price for ordering above a
specified amount
✔✔Transportation discounts - ✔✔A discount offered on shipping cost for ordering
above a specified amount
✔✔Revenue Sharing - ✔✔When 2 or more companies partner and divides the profits
received based on an agreement between all parties involved.
✔✔Reserve Capacity - ✔✔When a company stores, or pays another company to store,
excess inventory to be used for unexpected demand
✔✔Quality - ✔✔the degree to which a specific product conforms to its design
characteristics or specifications
The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and expectations
Is everyone's responsibility in the organization
✔✔Internal orientation of quality - ✔✔Directly measure characteristics of the product or
service, such as the number of packages delivered on time or the thickness of an
engine part based on manufactures specification.
✔✔External orientation of quality - ✔✔Fitness for use for the customer or the capacity to
satisfy customer's needs.
✔✔Quality Function Deployment (QFD) - ✔✔Taking customer expectations and
transforming them into specific actions designed to meet those expectations
✔✔Reliability - ✔✔Ability to perform the promised service dependably and accurately.
✔✔Responsiveness - ✔✔Willingness to help customers and provide prompt service.
, ✔✔Assurance - ✔✔Knowledge and courtesy of employees and their ability to convey
trust and confidence.
✔✔Empathy - ✔✔Provision of caring, individualized attention to customers.
✔✔Tangibles - ✔✔Appearance of physical facilities, equipment, personnel, and
communication materials, including access and effectiveness of Internet-based
information.
✔✔Performance - ✔✔Primary operating characteristics of a product.
✔✔Features - ✔✔Secondary characteristics that supplement the product's basic
functioning.
✔✔Reliability (quality of goods) - ✔✔Length of time a product will function before it fails,
or the probability it will function for a stated period of time.
✔✔Conformance - ✔✔Degree to which a product's design and operating characteristics
match pre-established standards.
✔✔Durability - ✔✔Ability of a product to function when subjected to hard and frequent
use.
✔✔Serviceability - ✔✔Speed, courtesy, and competence of repair.
✔✔Aesthetics - ✔✔How a product looks, feels, sounds, tastes, or smells.
✔✔Perceived Quality - ✔✔The image, advertising, or brand name of a product.
✔✔Crosby - ✔✔Used the phrase "Do it right the first time."
Wrote a book in 1979 entitled "Quality is Free"
Concept of zero defects as a measurable object Emphasized the importance of
considering all costs of quality
✔✔Juran - ✔✔Focus was on the customer's perception of quality
Quality must be built on three elements:
o Quality planning
o Quality control
o Quality improvement.
Focused on Fitness for use and Pareto Principle
✔✔Taguchi - ✔✔Used Robust Design
QUESTIONS AND ANSWERS SURE A+
✔✔ABC analysis - ✔✔Has been developed to determine which inventory items should
receive the highest level of control. By multiplying the dollar value of each item by its
annual usage, a dollar usage value can be obtained. Dollar usage follows the Pareto
Principle in that frequently, only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of the dollar usage.
This principle leads to the _____ classification, which is based on focusing efforts where
the payoff is highest
✔✔Pareto Principle - ✔✔Only 20% of all the items account for 80% of the total dollar
usage, while the remaining items frequently account for only 20% of the dollar usage.
This principle leads to the ABC classification, which is based on focusing efforts where
the payoff is highest
✔✔Economic Order Quantity (EOQ) - ✔✔For inventory that doesn't require production,
when demand is constant and known, when cost per unit does not depend on order
quantity.
Most appropriate for retail stores or companies that order finished goods.
,✔✔Economic Production Quantity (EPQ) - ✔✔For inventory that will be used in
production, When incremental ordering and depletion of inventory is allowed, Also
called production order quantity.
Most appropriate for manufacturing and production companies
✔✔The goal of firms using the EOQ & EPQ model - ✔✔Minimize the total annual costs
of ordering and holding inventory by varying the order quantity.
✔✔Quantity discount model - ✔✔A discount offered in price for ordering above a
specified amount
✔✔Transportation discounts - ✔✔A discount offered on shipping cost for ordering
above a specified amount
✔✔Revenue Sharing - ✔✔When 2 or more companies partner and divides the profits
received based on an agreement between all parties involved.
✔✔Reserve Capacity - ✔✔When a company stores, or pays another company to store,
excess inventory to be used for unexpected demand
✔✔Quality - ✔✔the degree to which a specific product conforms to its design
characteristics or specifications
The amount of a specific, desired attribute
The capacity to satisfy customers' needs
Consistently meeting or exceeding the customer's needs and expectations
Is everyone's responsibility in the organization
✔✔Internal orientation of quality - ✔✔Directly measure characteristics of the product or
service, such as the number of packages delivered on time or the thickness of an
engine part based on manufactures specification.
✔✔External orientation of quality - ✔✔Fitness for use for the customer or the capacity to
satisfy customer's needs.
✔✔Quality Function Deployment (QFD) - ✔✔Taking customer expectations and
transforming them into specific actions designed to meet those expectations
✔✔Reliability - ✔✔Ability to perform the promised service dependably and accurately.
✔✔Responsiveness - ✔✔Willingness to help customers and provide prompt service.
, ✔✔Assurance - ✔✔Knowledge and courtesy of employees and their ability to convey
trust and confidence.
✔✔Empathy - ✔✔Provision of caring, individualized attention to customers.
✔✔Tangibles - ✔✔Appearance of physical facilities, equipment, personnel, and
communication materials, including access and effectiveness of Internet-based
information.
✔✔Performance - ✔✔Primary operating characteristics of a product.
✔✔Features - ✔✔Secondary characteristics that supplement the product's basic
functioning.
✔✔Reliability (quality of goods) - ✔✔Length of time a product will function before it fails,
or the probability it will function for a stated period of time.
✔✔Conformance - ✔✔Degree to which a product's design and operating characteristics
match pre-established standards.
✔✔Durability - ✔✔Ability of a product to function when subjected to hard and frequent
use.
✔✔Serviceability - ✔✔Speed, courtesy, and competence of repair.
✔✔Aesthetics - ✔✔How a product looks, feels, sounds, tastes, or smells.
✔✔Perceived Quality - ✔✔The image, advertising, or brand name of a product.
✔✔Crosby - ✔✔Used the phrase "Do it right the first time."
Wrote a book in 1979 entitled "Quality is Free"
Concept of zero defects as a measurable object Emphasized the importance of
considering all costs of quality
✔✔Juran - ✔✔Focus was on the customer's perception of quality
Quality must be built on three elements:
o Quality planning
o Quality control
o Quality improvement.
Focused on Fitness for use and Pareto Principle
✔✔Taguchi - ✔✔Used Robust Design
