WGU C720 Complete OA Prep Guide Exam 171
Questions with Verified Answers
People, capital, material, money - CORRECT ANSWER Inputs
Services and goods - CORRECT ANSWER Outputs
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. - CORRECT
ANSWER Sustainability
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. - CORRECT
ANSWER VIRAL
A mathematical calculation; it is the ratio of the outputs achieved divided by the
inputs consumed to achieve those outputs. - CORRECT ANSWER Productivity
o Raw Materials
,o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation - CORRECT ANSWER 6 Types of Inventory
These parts and materials are obtained from suppliers and are used in the
production process. - CORRECT ANSWER Raw Materials
These are partly finished parts, components, sub-assemblies, or modules. -
CORRECT ANSWER Work-in-process (WIP)
Items are ready to ship to the customer. No more work is required. - CORRECT
ANSWER Finished Goods
These are maintained to replace other parts in machinery or equipment as those
parts wear out - CORRECT ANSWER Replacement parts inventory
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. - CORRECT ANSWER Supplies
The portion of inventory that is in the process of being shipped through the
distribution system. - CORRECT ANSWER Transportation (pipeline):
,o Peak
o Seasonal
o Unexpected
o Chase - CORRECT ANSWER 4 Types of Demand
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. - CORRECT ANSWER Peak Demand
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. - CORRECT ANSWER Seasonal
Demand
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. - CORRECT ANSWER Unexpected Demand
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. - CORRECT ANSWER Chase Demand
A cushion of inventory to protect against unexpected demand. In this way, they
can continue to meet customer demand without delays. - CORRECT ANSWER
Safety Stock
, Occurs when inventory is depleted. - CORRECT ANSWER Stock Out
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
o High value and high volume
o Expensive to implement and maintain - CORRECT ANSWER Perpetual Inventory
System
Randomly monitors inventory levels and is also called the fixed order interval
system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain - CORRECT ANSWER Periodic Inventory
System
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
Questions with Verified Answers
People, capital, material, money - CORRECT ANSWER Inputs
Services and goods - CORRECT ANSWER Outputs
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. - CORRECT
ANSWER Sustainability
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. - CORRECT
ANSWER VIRAL
A mathematical calculation; it is the ratio of the outputs achieved divided by the
inputs consumed to achieve those outputs. - CORRECT ANSWER Productivity
o Raw Materials
,o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation - CORRECT ANSWER 6 Types of Inventory
These parts and materials are obtained from suppliers and are used in the
production process. - CORRECT ANSWER Raw Materials
These are partly finished parts, components, sub-assemblies, or modules. -
CORRECT ANSWER Work-in-process (WIP)
Items are ready to ship to the customer. No more work is required. - CORRECT
ANSWER Finished Goods
These are maintained to replace other parts in machinery or equipment as those
parts wear out - CORRECT ANSWER Replacement parts inventory
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. - CORRECT ANSWER Supplies
The portion of inventory that is in the process of being shipped through the
distribution system. - CORRECT ANSWER Transportation (pipeline):
,o Peak
o Seasonal
o Unexpected
o Chase - CORRECT ANSWER 4 Types of Demand
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. - CORRECT ANSWER Peak Demand
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. - CORRECT ANSWER Seasonal
Demand
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. - CORRECT ANSWER Unexpected Demand
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. - CORRECT ANSWER Chase Demand
A cushion of inventory to protect against unexpected demand. In this way, they
can continue to meet customer demand without delays. - CORRECT ANSWER
Safety Stock
, Occurs when inventory is depleted. - CORRECT ANSWER Stock Out
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
o High value and high volume
o Expensive to implement and maintain - CORRECT ANSWER Perpetual Inventory
System
Randomly monitors inventory levels and is also called the fixed order interval
system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain - CORRECT ANSWER Periodic Inventory
System
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
