WGU C720 Operations and Supply Chain Management OA Practice
Exam
WGU C720 Operations and Supply Chain
Management OA Practice Exam Questions and
Answers 2026. Advanced NCLEX-Style 100 MCQs
with Rationales
Advanced NCLEX-Style Mock Exam
Based on the major C720 competencies: forecasting, inventory management, quality
management, lean systems, capacity planning, process design, scheduling, supply chain
management, and operational strategy.
Questions 1–25
Q1
A company produces custom furniture only after receiving customer orders. Which process
strategy is being used?
A. Make-to-stock
B. Assemble-to-order
C. Make-to-order
D. Continuous production
Answer: C
Rationale: Make-to-order begins production after customer demand is received, reducing
inventory but increasing lead time.
Q2
A manager wants to identify the small number of causes responsible for most defects. Which
quality tool should be used?
A. Scatter diagram
B. Pareto chart
C. Flowchart
D. Histogram
Answer: B
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Rationale: Pareto analysis follows the 80/20 rule, highlighting the few causes responsible for
most problems.
Q3
Which forecasting method uses expert judgment rather than historical data?
A. Moving average
B. Exponential smoothing
C. Delphi method
D. Regression analysis
Answer: C
Rationale: The Delphi method relies on expert opinions and consensus-building.
Q4
A company reduces setup times, minimizes inventory, and produces only when needed. This
reflects:
A. Theory of Constraints
B. MRP II
C. Lean Operations
D. Benchmarking
Answer: C
Rationale: Lean focuses on waste elimination and continuous flow.
Q5
The primary purpose of safety stock is to:
A. Reduce ordering costs
B. Prevent stockouts during demand uncertainty
C. Increase inventory turnover
D. Improve supplier relationships
Answer: B
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Rationale: Safety stock protects against unexpected fluctuations in demand or supply.
Q6
Which inventory cost increases as inventory levels increase?
A. Ordering cost
B. Setup cost
C. Carrying cost
D. Shortage cost
Answer: C
Rationale: Carrying costs include storage, insurance, and obsolescence expenses.
Q7
Which quality pioneer is associated with the 14 Points for Management?
A. Crosby
B. Juran
C. Deming
D. Taguchi
Answer: C
Rationale: Deming's philosophy emphasizes continual improvement and systems thinking.
Q8
What is the primary objective of supply chain management?
A. Maximize production volume
B. Minimize employee turnover
C. Coordinate flow of goods and information
D. Increase inventory
Answer: C
Rationale: Effective supply chains integrate suppliers, manufacturers, and customers.
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Q9
A bottleneck in a production process is:
A. The fastest operation
B. The lowest-cost process
C. The constraint limiting output
D. The highest-quality activity
Answer: C
Rationale: Bottlenecks determine system capacity.
Q10
Which layout is most appropriate for a hospital?
A. Product layout
B. Cellular layout
C. Process layout
D. Fixed-position layout
Answer: C
Rationale: Hospitals group similar functions and services together.
Q11
A control chart is used primarily to:
A. Forecast demand
B. Monitor process variation over time
C. Calculate EOQ
D. Measure inventory turnover
Answer: B
Q12
Exam
WGU C720 Operations and Supply Chain
Management OA Practice Exam Questions and
Answers 2026. Advanced NCLEX-Style 100 MCQs
with Rationales
Advanced NCLEX-Style Mock Exam
Based on the major C720 competencies: forecasting, inventory management, quality
management, lean systems, capacity planning, process design, scheduling, supply chain
management, and operational strategy.
Questions 1–25
Q1
A company produces custom furniture only after receiving customer orders. Which process
strategy is being used?
A. Make-to-stock
B. Assemble-to-order
C. Make-to-order
D. Continuous production
Answer: C
Rationale: Make-to-order begins production after customer demand is received, reducing
inventory but increasing lead time.
Q2
A manager wants to identify the small number of causes responsible for most defects. Which
quality tool should be used?
A. Scatter diagram
B. Pareto chart
C. Flowchart
D. Histogram
Answer: B
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Rationale: Pareto analysis follows the 80/20 rule, highlighting the few causes responsible for
most problems.
Q3
Which forecasting method uses expert judgment rather than historical data?
A. Moving average
B. Exponential smoothing
C. Delphi method
D. Regression analysis
Answer: C
Rationale: The Delphi method relies on expert opinions and consensus-building.
Q4
A company reduces setup times, minimizes inventory, and produces only when needed. This
reflects:
A. Theory of Constraints
B. MRP II
C. Lean Operations
D. Benchmarking
Answer: C
Rationale: Lean focuses on waste elimination and continuous flow.
Q5
The primary purpose of safety stock is to:
A. Reduce ordering costs
B. Prevent stockouts during demand uncertainty
C. Increase inventory turnover
D. Improve supplier relationships
Answer: B
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Rationale: Safety stock protects against unexpected fluctuations in demand or supply.
Q6
Which inventory cost increases as inventory levels increase?
A. Ordering cost
B. Setup cost
C. Carrying cost
D. Shortage cost
Answer: C
Rationale: Carrying costs include storage, insurance, and obsolescence expenses.
Q7
Which quality pioneer is associated with the 14 Points for Management?
A. Crosby
B. Juran
C. Deming
D. Taguchi
Answer: C
Rationale: Deming's philosophy emphasizes continual improvement and systems thinking.
Q8
What is the primary objective of supply chain management?
A. Maximize production volume
B. Minimize employee turnover
C. Coordinate flow of goods and information
D. Increase inventory
Answer: C
Rationale: Effective supply chains integrate suppliers, manufacturers, and customers.
, WGU C720 Operations and Supply Chain Management OA Practice
Exam
Q9
A bottleneck in a production process is:
A. The fastest operation
B. The lowest-cost process
C. The constraint limiting output
D. The highest-quality activity
Answer: C
Rationale: Bottlenecks determine system capacity.
Q10
Which layout is most appropriate for a hospital?
A. Product layout
B. Cellular layout
C. Process layout
D. Fixed-position layout
Answer: C
Rationale: Hospitals group similar functions and services together.
Q11
A control chart is used primarily to:
A. Forecast demand
B. Monitor process variation over time
C. Calculate EOQ
D. Measure inventory turnover
Answer: B
Q12
