WGU C720 OA ACTUAL PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉Outputs. Answer: Services and goods
◉Sustainability. Answer: 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. Answer: 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. Answer: A mathematical calculation; it is the ratio of
the outputs achieved divided by the inputs consumed to achieve
those outputs.
,◉6 Types of Inventory. Answer: o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
◉Raw Materials. Answer: These parts and materials are obtained
from suppliers and are used in the production process.
◉Work-in-process (WIP). Answer: These are partly finished parts,
components, sub-assemblies, or modules.
◉Finished Goods. Answer: Items are ready to ship to the customer.
No more work is required.
◉Replacement parts inventory. Answer: These are maintained to
replace other parts in machinery or equipment as those parts wear
out
◉Supplies. Answer: 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):. Answer: The portion of inventory that
is in the process of being shipped through the distribution system.
◉4 Types of Demand. Answer: o Peak
o Seasonal
o Unexpected
o Chase
◉Peak Demand. Answer: 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. Answer: 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. Answer: 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. Answer: 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.
◉Safety Stock. Answer: A cushion of inventory to protect against
unexpected demand. In this way, they can continue to meet
customer demand without delays.
◉Stock Out. Answer: Occurs when inventory is depleted.
◉Perpetual Inventory System. Answer: 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
QUESTIONS WITH SOLUTIONS GRADED A+
◉Outputs. Answer: Services and goods
◉Sustainability. Answer: 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. Answer: 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. Answer: A mathematical calculation; it is the ratio of
the outputs achieved divided by the inputs consumed to achieve
those outputs.
,◉6 Types of Inventory. Answer: o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
◉Raw Materials. Answer: These parts and materials are obtained
from suppliers and are used in the production process.
◉Work-in-process (WIP). Answer: These are partly finished parts,
components, sub-assemblies, or modules.
◉Finished Goods. Answer: Items are ready to ship to the customer.
No more work is required.
◉Replacement parts inventory. Answer: These are maintained to
replace other parts in machinery or equipment as those parts wear
out
◉Supplies. Answer: 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):. Answer: The portion of inventory that
is in the process of being shipped through the distribution system.
◉4 Types of Demand. Answer: o Peak
o Seasonal
o Unexpected
o Chase
◉Peak Demand. Answer: 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. Answer: 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. Answer: 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. Answer: 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.
◉Safety Stock. Answer: A cushion of inventory to protect against
unexpected demand. In this way, they can continue to meet
customer demand without delays.
◉Stock Out. Answer: Occurs when inventory is depleted.
◉Perpetual Inventory System. Answer: 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
