1 for specific request mail
WGU C720 Complete OA Prep Guide Questions and
Correct Answers | Latest Update
Inputs— Ans: People, capital, material, money
Outputs— Ans: Services and goods
Sustainability— Ans: Defined broadly in operations and supply chain
management as the ethical issues an organization faces to balance
financial performance while maintaining social responsibility standards
© 2026 Assignment
and a responsible environmental profile.
VIRAL— Ans: Acronym - A framework for competitive advantage.
Guru01 - Stuvia
Viral, Inimitable, Rare, Aptitude, Lifespan.
Expert
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— Ans: A mathematical calculation; it is the ratio of the
outputs achieved divided by the inputs consumed to achieve those
outputs.
6 Types of Inventory— Ans: o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
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Raw Materials— Ans: These parts and materials are obtained from
suppliers and are used in the production process.
Work-in-process (WIP)— Ans: These are partly finished parts,
components, sub-assemblies, or modules.
Finished Goods— Ans: Items are ready to ship to the customer. No more
work is required.
Replacement parts inventory— Ans: These are maintained to replace
other parts in machinery or equipment as those parts wear out
© 2026 Assignment
Supplies— Ans: Parts or materials are used to support the production
process but not usually a component of the product. These items, such
Guru01 - Stuvia
as lubricant and cutting tools, are consumed in the production process.
Expert
Transportation (pipeline):— Ans: The portion of inventory that is in the
process of being shipped through the distribution system.
4 Types of Demand— Ans: o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand— Ans: 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— Ans: 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.
, 3 for specific request mail
Unexpected Demand— Ans: 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— Ans: 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
© 2026 Assignment
their normally scheduled time.
Safety Stock— Ans: A cushion of inventory to protect against
Guru01 - Stuvia
unexpected demand. In this way, they can continue to meet customer
Expert
demand without delays.
Stock Out— Ans: Occurs when inventory is depleted.
Perpetual Inventory System— Ans: 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
Periodic Inventory System— Ans: 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
WGU C720 Complete OA Prep Guide Questions and
Correct Answers | Latest Update
Inputs— Ans: People, capital, material, money
Outputs— Ans: Services and goods
Sustainability— Ans: Defined broadly in operations and supply chain
management as the ethical issues an organization faces to balance
financial performance while maintaining social responsibility standards
© 2026 Assignment
and a responsible environmental profile.
VIRAL— Ans: Acronym - A framework for competitive advantage.
Guru01 - Stuvia
Viral, Inimitable, Rare, Aptitude, Lifespan.
Expert
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— Ans: A mathematical calculation; it is the ratio of the
outputs achieved divided by the inputs consumed to achieve those
outputs.
6 Types of Inventory— Ans: o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
, 2 for specific request mail
Raw Materials— Ans: These parts and materials are obtained from
suppliers and are used in the production process.
Work-in-process (WIP)— Ans: These are partly finished parts,
components, sub-assemblies, or modules.
Finished Goods— Ans: Items are ready to ship to the customer. No more
work is required.
Replacement parts inventory— Ans: These are maintained to replace
other parts in machinery or equipment as those parts wear out
© 2026 Assignment
Supplies— Ans: Parts or materials are used to support the production
process but not usually a component of the product. These items, such
Guru01 - Stuvia
as lubricant and cutting tools, are consumed in the production process.
Expert
Transportation (pipeline):— Ans: The portion of inventory that is in the
process of being shipped through the distribution system.
4 Types of Demand— Ans: o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand— Ans: 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— Ans: 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.
, 3 for specific request mail
Unexpected Demand— Ans: 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— Ans: 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
© 2026 Assignment
their normally scheduled time.
Safety Stock— Ans: A cushion of inventory to protect against
Guru01 - Stuvia
unexpected demand. In this way, they can continue to meet customer
Expert
demand without delays.
Stock Out— Ans: Occurs when inventory is depleted.
Perpetual Inventory System— Ans: 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
Periodic Inventory System— Ans: 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
