WGU C720 OPERATIONS AND SUPPLY CHAIN
MANAGEMENT | FULL STUDY GUIDE, VERIFIED
EXAM QUESTIONS
WGU C720 — OPERATIONS AND SUPPLY CHAIN MANAGEMENT
FULL STUDY GUIDE | 400 VERIFIED EXAM QUESTIONS
SECTION 1: OPERATIONS MANAGEMENT FUNDAMENTALS
Q1. What is the primary goal of operations management?
A. To maximize shareholder dividends B. To design and control the production of goods
and services C. To manage human resources effectively D. To reduce employee
turnover E. To increase marketing reach
CORRECT ANSWER: B. To design and control the production of goods and
services RATIONALE: Operations management focuses on designing,
overseeing, and controlling the processes that transform inputs (labor, materials,
capital) into outputs (goods and services) efficiently and effectively.
Q2. Which of the following best describes a transformation process in operations
management?
A. Converting financial data into budgets B. Hiring and training new employees C.
Converting inputs such as labor and materials into outputs D. Advertising products to
customers E. Distributing dividends to shareholders
CORRECT ANSWER: C. Converting inputs such as labor and materials into
outputs RATIONALE: The transformation process is the core of operations
management — it takes inputs (raw materials, labor, energy, capital) and converts them
into finished goods or services.
Q3. Which of the following is NOT considered an input in the operations
transformation model?
A. Raw materials B. Labor C. Capital equipment D. Customer satisfaction scores E.
Energy
, CORRECT ANSWER: D. Customer satisfaction scores RATIONALE: Inputs
in the transformation model include tangible resources such as raw materials, labor,
energy, and equipment. Customer satisfaction scores are feedback/output metrics, not
inputs.
Q4. Which type of production system produces large quantities of a standardized
product continuously?
A. Job shop production B. Batch production C. Project production D. Continuous
production E. Cellular manufacturing
CORRECT ANSWER: D. Continuous production RATIONALE: Continuous
production runs 24/7 and produces standardized goods in high volume (e.g., oil refining,
electricity generation). It is highly automated and has low per-unit cost.
Q5. A company that produces custom furniture one piece at a time is using which
production system?
A. Mass production B. Continuous flow C. Job shop D. Repetitive manufacturing E.
Lean production
CORRECT ANSWER: C. Job shop RATIONALE: A job shop produces unique
or highly customized items in small quantities. Each order is different, requiring flexible
equipment and skilled labor.
Q6. What does "value-added" mean in the context of operations management?
A. The profit margin on a product B. Enhancements that increase a product's worth to
the customer C. The total cost of production D. The number of features added to a
product E. The markup applied by the retailer
CORRECT ANSWER: B. Enhancements that increase a product's worth to the
customer RATIONALE: Value-added activities transform a product in a way the
customer values and is willing to pay for. Non-value-added activities (waste) should be
minimized.
Q7. The term "productivity" in operations management is best defined as:
,A. The number of employees in a facility B. The ratio of outputs to inputs C. The speed
of a production line D. The quality level of finished goods E. The amount of overtime
worked
CORRECT ANSWER: B. The ratio of outputs to inputs RATIONALE:
Productivity = Output / Input. It measures how efficiently resources are being used to
produce goods or services.
Q8. Which of the following is an example of a service operation?
A. Automobile manufacturing B. Steel production C. A hospital providing patient care D.
Wheat harvesting E. Circuit board assembly
CORRECT ANSWER: C. A hospital providing patient care RATIONALE:
Service operations produce intangible outputs. A hospital provides care (a service),
unlike manufacturing operations which produce tangible goods.
Q9. What is the "triple bottom line" concept in operations management?
A. Profit, revenue, and market share B. Quality, speed, and cost C. People, planet, and
profit D. Input, process, and output E. Design, production, and delivery
CORRECT ANSWER: C. People, planet, and profit RATIONALE: The triple
bottom line framework holds organizations accountable for social (people),
environmental (planet), and financial (profit) performance — a cornerstone of
sustainable operations.
Q10. Which operations strategy competitive priority refers to consistently
meeting customer specifications?
A. Cost B. Flexibility C. Speed D. Quality E. Dependability
CORRECT ANSWER: D. Quality RATIONALE: Quality as a competitive
priority means consistently producing products/services that meet or exceed customer
expectations in terms of performance, reliability, and conformance to specifications.
Q11. Which competitive priority focuses on the ability to respond quickly to
customer demands?
, A. Cost B. Quality C. Flexibility D. Speed (Time) E. Innovation
CORRECT ANSWER: D. Speed (Time) RATIONALE: Speed/time-based
competition focuses on reducing lead times, delivery times, and response times to give
customers faster service than competitors.
Q12. A firm that competes by offering the lowest price to customers is using
which competitive priority?
A. Quality B. Flexibility C. Cost D. Speed E. Customization
CORRECT ANSWER: C. Cost RATIONALE: Cost leadership means providing
products or services at the lowest possible price, achieved through high efficiency,
economies of scale, and waste reduction.
Q13. Which of the following describes "order qualifiers"?
A. Features that win customer orders B. Minimum standards a product must meet to be
considered by a customer C. Products that exceed customer expectations D. Services
that are optional add-ons E. Metrics used to rank suppliers
CORRECT ANSWER: B. Minimum standards a product must meet to be
considered by a customer RATIONALE: Order qualifiers are threshold criteria
(e.g., basic quality, price range) that must be met for a company to be considered.
Order winners are what actually win the business.
Q14. What is meant by "order winners" in operations strategy?
A. Criteria that meet the minimum threshold of customer requirements B. Features or
attributes that cause a customer to choose one company over another C. Products with
the highest profit margin D. Orders that are delivered on time E. Contracts won through
competitive bidding
CORRECT ANSWER: B. Features or attributes that cause a customer to
choose one company over another RATIONALE: Order winners differentiate a
company from its competitors and are the primary reasons customers choose that
company's products or services.
MANAGEMENT | FULL STUDY GUIDE, VERIFIED
EXAM QUESTIONS
WGU C720 — OPERATIONS AND SUPPLY CHAIN MANAGEMENT
FULL STUDY GUIDE | 400 VERIFIED EXAM QUESTIONS
SECTION 1: OPERATIONS MANAGEMENT FUNDAMENTALS
Q1. What is the primary goal of operations management?
A. To maximize shareholder dividends B. To design and control the production of goods
and services C. To manage human resources effectively D. To reduce employee
turnover E. To increase marketing reach
CORRECT ANSWER: B. To design and control the production of goods and
services RATIONALE: Operations management focuses on designing,
overseeing, and controlling the processes that transform inputs (labor, materials,
capital) into outputs (goods and services) efficiently and effectively.
Q2. Which of the following best describes a transformation process in operations
management?
A. Converting financial data into budgets B. Hiring and training new employees C.
Converting inputs such as labor and materials into outputs D. Advertising products to
customers E. Distributing dividends to shareholders
CORRECT ANSWER: C. Converting inputs such as labor and materials into
outputs RATIONALE: The transformation process is the core of operations
management — it takes inputs (raw materials, labor, energy, capital) and converts them
into finished goods or services.
Q3. Which of the following is NOT considered an input in the operations
transformation model?
A. Raw materials B. Labor C. Capital equipment D. Customer satisfaction scores E.
Energy
, CORRECT ANSWER: D. Customer satisfaction scores RATIONALE: Inputs
in the transformation model include tangible resources such as raw materials, labor,
energy, and equipment. Customer satisfaction scores are feedback/output metrics, not
inputs.
Q4. Which type of production system produces large quantities of a standardized
product continuously?
A. Job shop production B. Batch production C. Project production D. Continuous
production E. Cellular manufacturing
CORRECT ANSWER: D. Continuous production RATIONALE: Continuous
production runs 24/7 and produces standardized goods in high volume (e.g., oil refining,
electricity generation). It is highly automated and has low per-unit cost.
Q5. A company that produces custom furniture one piece at a time is using which
production system?
A. Mass production B. Continuous flow C. Job shop D. Repetitive manufacturing E.
Lean production
CORRECT ANSWER: C. Job shop RATIONALE: A job shop produces unique
or highly customized items in small quantities. Each order is different, requiring flexible
equipment and skilled labor.
Q6. What does "value-added" mean in the context of operations management?
A. The profit margin on a product B. Enhancements that increase a product's worth to
the customer C. The total cost of production D. The number of features added to a
product E. The markup applied by the retailer
CORRECT ANSWER: B. Enhancements that increase a product's worth to the
customer RATIONALE: Value-added activities transform a product in a way the
customer values and is willing to pay for. Non-value-added activities (waste) should be
minimized.
Q7. The term "productivity" in operations management is best defined as:
,A. The number of employees in a facility B. The ratio of outputs to inputs C. The speed
of a production line D. The quality level of finished goods E. The amount of overtime
worked
CORRECT ANSWER: B. The ratio of outputs to inputs RATIONALE:
Productivity = Output / Input. It measures how efficiently resources are being used to
produce goods or services.
Q8. Which of the following is an example of a service operation?
A. Automobile manufacturing B. Steel production C. A hospital providing patient care D.
Wheat harvesting E. Circuit board assembly
CORRECT ANSWER: C. A hospital providing patient care RATIONALE:
Service operations produce intangible outputs. A hospital provides care (a service),
unlike manufacturing operations which produce tangible goods.
Q9. What is the "triple bottom line" concept in operations management?
A. Profit, revenue, and market share B. Quality, speed, and cost C. People, planet, and
profit D. Input, process, and output E. Design, production, and delivery
CORRECT ANSWER: C. People, planet, and profit RATIONALE: The triple
bottom line framework holds organizations accountable for social (people),
environmental (planet), and financial (profit) performance — a cornerstone of
sustainable operations.
Q10. Which operations strategy competitive priority refers to consistently
meeting customer specifications?
A. Cost B. Flexibility C. Speed D. Quality E. Dependability
CORRECT ANSWER: D. Quality RATIONALE: Quality as a competitive
priority means consistently producing products/services that meet or exceed customer
expectations in terms of performance, reliability, and conformance to specifications.
Q11. Which competitive priority focuses on the ability to respond quickly to
customer demands?
, A. Cost B. Quality C. Flexibility D. Speed (Time) E. Innovation
CORRECT ANSWER: D. Speed (Time) RATIONALE: Speed/time-based
competition focuses on reducing lead times, delivery times, and response times to give
customers faster service than competitors.
Q12. A firm that competes by offering the lowest price to customers is using
which competitive priority?
A. Quality B. Flexibility C. Cost D. Speed E. Customization
CORRECT ANSWER: C. Cost RATIONALE: Cost leadership means providing
products or services at the lowest possible price, achieved through high efficiency,
economies of scale, and waste reduction.
Q13. Which of the following describes "order qualifiers"?
A. Features that win customer orders B. Minimum standards a product must meet to be
considered by a customer C. Products that exceed customer expectations D. Services
that are optional add-ons E. Metrics used to rank suppliers
CORRECT ANSWER: B. Minimum standards a product must meet to be
considered by a customer RATIONALE: Order qualifiers are threshold criteria
(e.g., basic quality, price range) that must be met for a company to be considered.
Order winners are what actually win the business.
Q14. What is meant by "order winners" in operations strategy?
A. Criteria that meet the minimum threshold of customer requirements B. Features or
attributes that cause a customer to choose one company over another C. Products with
the highest profit margin D. Orders that are delivered on time E. Contracts won through
competitive bidding
CORRECT ANSWER: B. Features or attributes that cause a customer to
choose one company over another RATIONALE: Order winners differentiate a
company from its competitors and are the primary reasons customers choose that
company's products or services.
