WGU C720 OA COMPREHENSIVE REVIEW
2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Capacity. Answer: A measure of an organization's ability to
sustainably provide customers with the demanded services or goods
in the amount requested and in a timely manner, given current
resources. Capacity also describes an organization's maximum
sustainable rate of production.
◉Capacity planning. Answer: Needed to support customer demand
and maintain production capacity as demands for products change
◉Lead. Answer: Adds capacity with the anticipation of an increase
in demand. This strategy is considered aggressive and is primarily
used in an effort to obtain customers from
competitors by reducing the amount of lead time and improving
service levels. Using this strategy ensures adequate capacity is
available to meet all demands
during high growth periods.
,◉Lag. Answer: Adds capacity only after an organization is running at
full capacity or is beyond due to increase in demand. This is the
opposite of lead capacity strategy.
◉Match. Answer: Adds capacity in small incremental amounts in
response to changing demands in the market
◉Adjustment. Answer: Adds or reduce capacity in small or large
amounts as consumer demand changes; triggered by major changes
to process or system
◉Product-oriented layout. Answer: Characterized by high demand
for the same or similar products.
Also called Sequential Layout.
◉Process-oriented layout. Answer: Characterized by the production
of many different products with the same equipment and low
volume of any individual product.
Also called Functional Layout.
◉Design capacity. Answer: The maximum achievable output of a
process or system.
, ◉Effective capacity. Answer: The maximum capacity given the
product mix, equipment changeovers, and scheduled downtime of
the production schedule. Always less than design capacity.
◉Actual Output. Answer: Total amount produced during a given
time period.
◉Capacity Utilization. Answer: A metric, or measure, used to
determine how much capacity is actually being used on an average
basis.
Capacity utilization = Actual Output / Design Capacity
◉Efficiency Rate. Answer: A metric, or measure, used to determine
how much effective capacity is actually being used to achieve output.
Efficiency = Actual Output / Effective Capacity
◉Theory of Constraints (TOC). Answer: 5-step thinking process
which helps a firm achieve optimal throughput in the current
system, by identifying the bottleneck and coordinating the system
around the bottleneck's capacity. Also helps identify ways of
overcoming the bottleneck.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Capacity. Answer: A measure of an organization's ability to
sustainably provide customers with the demanded services or goods
in the amount requested and in a timely manner, given current
resources. Capacity also describes an organization's maximum
sustainable rate of production.
◉Capacity planning. Answer: Needed to support customer demand
and maintain production capacity as demands for products change
◉Lead. Answer: Adds capacity with the anticipation of an increase
in demand. This strategy is considered aggressive and is primarily
used in an effort to obtain customers from
competitors by reducing the amount of lead time and improving
service levels. Using this strategy ensures adequate capacity is
available to meet all demands
during high growth periods.
,◉Lag. Answer: Adds capacity only after an organization is running at
full capacity or is beyond due to increase in demand. This is the
opposite of lead capacity strategy.
◉Match. Answer: Adds capacity in small incremental amounts in
response to changing demands in the market
◉Adjustment. Answer: Adds or reduce capacity in small or large
amounts as consumer demand changes; triggered by major changes
to process or system
◉Product-oriented layout. Answer: Characterized by high demand
for the same or similar products.
Also called Sequential Layout.
◉Process-oriented layout. Answer: Characterized by the production
of many different products with the same equipment and low
volume of any individual product.
Also called Functional Layout.
◉Design capacity. Answer: The maximum achievable output of a
process or system.
, ◉Effective capacity. Answer: The maximum capacity given the
product mix, equipment changeovers, and scheduled downtime of
the production schedule. Always less than design capacity.
◉Actual Output. Answer: Total amount produced during a given
time period.
◉Capacity Utilization. Answer: A metric, or measure, used to
determine how much capacity is actually being used on an average
basis.
Capacity utilization = Actual Output / Design Capacity
◉Efficiency Rate. Answer: A metric, or measure, used to determine
how much effective capacity is actually being used to achieve output.
Efficiency = Actual Output / Effective Capacity
◉Theory of Constraints (TOC). Answer: 5-step thinking process
which helps a firm achieve optimal throughput in the current
system, by identifying the bottleneck and coordinating the system
around the bottleneck's capacity. Also helps identify ways of
overcoming the bottleneck.
