WGU C720 Ultimate Operations and Supply Chain Mastery: Inventory
Management, EOQ, EPQ, JIT, JIT II, Lean, Agile, Kanban, MRP, MRP II,
ERP, Forecasting, Aggregate Planning, Capacity Planning, TOC, Six
Sigma, DMAIC, DMADV, TQM, Quality Function Deployment, Deming
Cycle, Crosby, Juran, Taguchi, Ishikawa, Benchmarking, Kaizen, Process
Optimization, Value Stream Mapping, Reliability, Responsiveness,
Empathy, Aesthetics, Conformance, Durability, Serviceability –
Comprehensive Exam Review for Logistics, Production, and Operations
Management Professionals Exam Questions Verified and Provided
with Complete A+ Graded Rationales Latest Updated 2026
Inputs
People, capital, material, money
Outputs
Services and goods
Sustainability
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.
,VIRAL
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.
Productivity
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
,These parts and materials are obtained from suppliers and are used in the production process.
Work-in-process (WIP)
These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
Items are ready to ship to the customer. No more work is required.
Replacement parts inventory
These are maintained to replace other parts in machinery or equipment as those parts wear out
Supplies
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.
Transportation (pipeline):
The portion of inventory that is in the process of being shipped through the distribution system.
4 Types of Demand
o Peak
, o Seasonal
o Unexpected
o Chase
Peak 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.
Seasonal 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.
Unexpected 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.
Chase 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.
Management, EOQ, EPQ, JIT, JIT II, Lean, Agile, Kanban, MRP, MRP II,
ERP, Forecasting, Aggregate Planning, Capacity Planning, TOC, Six
Sigma, DMAIC, DMADV, TQM, Quality Function Deployment, Deming
Cycle, Crosby, Juran, Taguchi, Ishikawa, Benchmarking, Kaizen, Process
Optimization, Value Stream Mapping, Reliability, Responsiveness,
Empathy, Aesthetics, Conformance, Durability, Serviceability –
Comprehensive Exam Review for Logistics, Production, and Operations
Management Professionals Exam Questions Verified and Provided
with Complete A+ Graded Rationales Latest Updated 2026
Inputs
People, capital, material, money
Outputs
Services and goods
Sustainability
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.
,VIRAL
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.
Productivity
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs.
6 Types of Inventory
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials
,These parts and materials are obtained from suppliers and are used in the production process.
Work-in-process (WIP)
These are partly finished parts, components, sub-assemblies, or modules.
Finished Goods
Items are ready to ship to the customer. No more work is required.
Replacement parts inventory
These are maintained to replace other parts in machinery or equipment as those parts wear out
Supplies
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.
Transportation (pipeline):
The portion of inventory that is in the process of being shipped through the distribution system.
4 Types of Demand
o Peak
, o Seasonal
o Unexpected
o Chase
Peak 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.
Seasonal 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.
Unexpected 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.
Chase 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.
