WGU C215 Operations Management Test 2025

1. Advertising revenue model Provides users with information on services and products and provides an opportunity for suppliers to advertise 2. Affiliate revenue model Companies receive a referral fee for directing business to an affiliate 3. Appraisal cost The cost associated with uncovering defects 4. Automated order entry sys- tems A method using telephone models to send digital orders to suppliers. 5. Backwards integration Owning or controlling sources of raw materi- als and components. 6. Benchmarking Studying other companies business practices for comparison. 7. Bullwhip effect Inaccurate or distorted demand information created in the supply chain. 8. Business to Business com- merce 9. Business to consumer com- merce Businesses buying and selling to other busi- nesses. Businesses selling to individual consumers. 10. Cause and effect diagrams A chart that identifies potential causes of par- ticular quality problems. 11. Checklist A list of common defects and the number of observed occurrences of each. 12. Conformance to specifica- tions how well a product or service meets the tar- gets and tolerances set by designers 13. Continuous improvement A philosophy of never ending improvement. 14. Control charts Charts used to evaluate whether a process is operating within expectations. 2 / 10 15. Crossdocking Eliminates storage and order picking func- tions of a distribution warehouse. 16. Customer defined quality an integrated effort designed to improve qual- ity performance at every level of the organiza- tion. 17. Deming Prize Japanese award for companies to recognize efforts in quality improvement. 18. Distribution management Responsible for the movement of material from the manufacturer to the customer. 19. Distribution warehouse Used for short term storage, consolidation, and product mixing. 20. Distributor crossdocking the receiving and consolidating of inbound products from different vendors into a mul- ti-SKU pallet. 21. E-commerce Using the internet and web to do business. 22. E-distributors Independently owned net marketplaces hav- ing catalogs representing thousands of sup- pliers and designed for spot purchases. 23. E-purchasing Companies that connect onlone MRO suppli- ers to businesses that pay fees to join the market, usually for long term contractual pur- chasing. 24. Early supplier involment (ESI) 25. Electronic data interchange (EDI) 26. 26. Involvement of critical suppliers in new prod- uct design. A form of computer to computer communi- cations that enables sharing business docu- ments. 3 / 10 Electronic requests for quotes (eRFQs) An electronic request for a quote on goods and services. 27. Electronic storefront online catalogs of products made available to the general public by a single supplier 28. Exchanges Marketplaces that focus on spot requirements of larger firms in a single industry 29. External Failure costs Costs associated with failures that occur at the customer site. 30. Extranets intranets that are linked to the internet so that suppliers and customers can be included in the system. 31. Fitness for use How well the product performs its intended purpose. 32. Flowchart A schematic of the sequence of steps involved in a process. 33. Forward integration Owning or controlling the channels of distrib- utions 34. General warehouse used for long term storage 35. Green supply chain man- agement Focucses on the role of the supply chain with regard to its impact on the environment. 36. Histogram A chart that shows frequency distribution of observed values of a variable. 37. Incoming inspection verifies the quality of incoming goods 38. Industry consortia Industry owned markets for purchase of direct inputs from limited number of suppliers. 39. Insourced processes and activities completed in house 4 / 10 40. Internal failure costs costs associated with discovering poor quality product before it reaches customers. 41. Intranets networks internal to the organization 42. ISO 14000 Set of standards & certification focused on environmental responsiblity 43. ISO 9000 Set of quality standards & certification indicat- ing companies have met that standard. 44. Kaizen Japanese term for continuous improvement through learning and problem solving. 45. Logistics Obtaining, producing an distributing materials and products. 46. Malcolm Baldridge Award Award for demonstrating quality excellence and establishing best practices. 47. Manufacturing crossdock- ing receiving and consolidating inbound supplies and materials for JIT manufacturing. 48. Net Marketplaces suppliers and buyers conduct trade in a single internet based environment. 49. Outsourced Processes/activities completed by suppliers. 50. Pareto Analysis A technique used to identify quality problems based on their degree of importance. 51. Partnering A process of developing long term relation- ships with a supplier based on trust, shared vision, and shared information, and shared risk. 52. Plan-do-study-act (PDSA) cycle a diagram that describes the actvities that need to be performed to incorporate continu- ous improvement.