WGU C215 OPERATIONS MANAGEMENT EXAM TEST QUESTIONS WITH 100% CORRECT ANSWERS NEW 2026 UPDATE

WGU C215 WGU C215 WGU C215 OPERATIONS MANAGEMENT EXAM TEST QUESTIONS WITH 100% CORRECT ANSWERS NEW 2026 UPDATE Advertising revenue model - -Provides users with information on services and products and provides an opportunity for suppliers to advertise Affiliate revenue model - -Companies receive a referral fee for directing business to an affiliate Appraisal cost - -The cost associated with uncovering defects Automated order entry systems - -A method using telephone models to send digital orders to suppliers. Backwards integration - -Owning or controlling sources of raw materials and components. Benchmarking - -Studying other companies business practices for comparison. Bullwhip effect - -Inaccurate or distorted demand information created in the supply chain. Business to Business commerce - -Businesses buying and selling to other businesses. Business to consumer commerce - -Businesses selling to individual consumers. Cause and effect diagrams - -A chart that identifies potential causes of particular quality problems. Checklist - -A list of common defects and the number of observed occurrences of each. Conformance to specifications - -how well a product or service meets the targets and tolerances set by designers. Continuous improvement - -A philosophy of never ending improvement. WGU C215 WGU C215 Control charts - -Charts used to evaluate whether a process is operating within expectations. Crossdocking - -Eliminates storage and order picking functions of a distribution warehouse. Customer defined quality - -an integrated effort designed to improve quality performance at every level of the organization. Deming Prize - -Japanese award for companies to recognize efforts in quality improvement. Distribution management - -Responsible for the movement of material from the manufacturer to the customer. Distribution warehouse - -Used for short term storage, consolidation, and product mixing. Distributor crossdocking - -the receiving and consolidating of inbound products from different vendors into a multi-SKU pallet. E-commerce - -Using the internet and web to do business. E-distributors - -Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases. E-purchasing - -Companies that connect onlone MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing. Early supplier involment (ESI) - -Involvement of critical suppliers in new product design. Electronic data interchange (EDI) - -A form of computer to computer communications that enables sharing business documents. Electronic requests for quotes (eRFQs) - -An electronic request for a quote on goods and services. Electronic storefront - -online catalogs of products made available to the general public by a single supplier Exchanges - -Marketplaces that focus on spot requirements of larger firms in a single industry External Failure costs - -Costs associated with failures that occur at the customer site. WGU C215 WGU C215 Extranets - -intranets that are linked to the internet so that suppliers and customers can be included in the system. Fitness for use - -How well the product performs its intended purpose. Flowchart - -A schematic of the sequence of steps involved in a process. Forward integration - -Owning or controlling the channels of distributions General warehouse - -used for long term storage Green supply chain management - -Focucses on the role of the supply chain with regard to its impact on the environment. Histogram - -A chart that shows frequency distribution of observed values of a variable. Incoming inspection - -verifies the quality of incoming goods Industry consortia - -Industry owned markets for purchase of direct inputs from limited number of suppliers. Insourced - -processes and activities completed in house Internal failure costs - -costs associated with discovering poor quality product before it reaches customers. Intranets - -networks internal to the organization ISO 14000 - -Set of standards & certification focused on environmental responsiblity ISO 9000 - -Set of quality standards & certification indicating companies have met that standard. Kaizen - -Japanese term for continuous improvement through learning and problem solving. Logistics - -Obtaining, producing an distributing materials and products. Malcolm Baldridge Award - -Award for demonstrating quality excellence and establishing best practices. Manufacturing crossdocking - -receiving and consolidating inbound supplies and materials for JIT manufacturing. Net Marketplaces - -suppliers and buyers conduct trade in a single internet based environment. WGU C215 WGU C215 Outsourced - -Processes/activities completed by suppliers. Pareto Analysis - -A technique used to identify quality problems based on their degree of importance. Partnering - -A process of developing long term relationships with a supplier based on trust, shared vision, and shared information, and shared risk. Plan-do-study-act (PDSA) cycle - -a diagram that describes the actvities that need to be performed to incorporate continuous improvement. Postponement - -Strategy shifts production differentiation closer to the consumer by postponing final configuration Prevention costs - -Costs associated with preventing poor quality/defects from occurring. Price and availability - -Current prices and whether the quantity is available when needed. Psychological criteria - -way of defining quality, focuses on judgement of what constitutes product or service excellence. Purchase order - -legal document committing to buy goods and providing details of purchase. Quality at the source - -best to uncover problems at source and correct it. Quality Circle - -Team of volunteer production workers and supervisors who meet regularly to solve quality issue. Quality function deployment (QFD) - -tool to translate preferences of the customer into specific technical requirements. Radio frequency identificaion (RFID) - -unpowered microchips used to transmit encoded info through antennae Reliability - -probability of part, product or services will perform as intended. Requisition request - -indicates the need for an item. Retail crossdocking - -sorting product from multiple vendors onto outbound trucks headed for specific stores. WGU C215 WGU C215 Robust design - -A design that results in a product that can perform over a wide range of conditions. Sales revenue model - -a means of selling goods, information, or services directly to consumers. Scatter diagram - -Graphs that show how two variables relate. Sourcing strategy - -A plan indicating suppliers to be used when making purchases. Subscription revenue model - -a web site that charges a subscription fee for access to its contents and services. Supply Chain - -All the activities involved in delivering a finished product or service to customer Supply chain management - -Coordinates and manages all the activities of the supply chain Supply chain management - -The speed at which product moves through a pipeline from the manufacturer to the customer Supply chain velocity - -The speed at which product moves through a pipeline from manufacturer to the customer. Support Serviecs - -Quality defined in terms of the support provided after the product services is purchased. Taguchi loss function - -costs of quality increase as a quadratic function as conformance values move away from target. Tier one suppliers - -Supplies materials directly to processing facility Tier three suppliers - -Directly supplies materials or services to a tier two supplier in the supply chain. Tier two suppliers - -directly supplies tier one suppliers Total quality management - -The meaning of quality as defined by the customer Transaction fee model - -A company receives a fee for executing a transaction Transportation crossdocking - -Consideration of LTL shipments to gain economics of scale. WGU C215 WGU C215 Value for price paid - -Quality defined in terms of consumer's perception of usefulness of service or product related to prices paid. Vertical integration - -A measure of how much of the supply chain is owned by the manufacturing company. Virtual private network (VPN) - -A private internet based communications environment that is used by the company, its suppliers, and its customers for day to day activities. Best Operating level - -the output volume that results in lowest average unit cost. Break even analysis - -used to compute the amount of goods that must be sold just to cover costs. Capacity - -maximum output rate that can be achieved by a facility. Capacity cushions - -additional capacity added to regular capacity requirements for greater flexibility. Capacity planning - -The process of establishing the output rate that can be achieved by a facility Capacity utilization - -Percentage measure of how well available capacity is being used. Decision tree - -Modeling tool used to evaluate independent decisions that must be made in sequence. Design capacity - -the maximum output rate that can be achieved under ideal conditions Diseconomies of scale - -A condition in which the cost of each additional unit made increases. Economies of scale - -A condition in which the cost of each additional unit made decreases. Effective capacity - -maximum output rate under normal conditions, lower than design capacity. Expected value - -a weighted average of chance events, where each chance event is given a probability of occurrence. Factor rating - -a procedure that can be used to evaluate multiple alternative locations based on a number of selected factors. Focused factories - -Facilities that are small specialized and focused on narrow set of objectives. WGU C215 WGU C215 Globalization - -the process of locating facilities around the world. Load-distance model - -a procedure for evaluating location alternatives based on distance. Location analysis - -technique for determining location decisions Rectilinear distance. - -The shortest distance between two points measured by using only north-south and east-west movements Beliefs defining JIT philosophy - -Operations, simplicity, continuous improvement, visibility, and flexibility. Bottom-round management - -consensus management by committees or teams. Broad view of JIT - -philosophy that encompasses the entire organization Broad view of the organization - -tasks and procedures are important only if they meet goals. Cell manufacturing - -Placement of dissimilar machines and equipment together to produce a family of products with similar requirements. External setups - -can be performed while the machine is still running Flexible - -A company can quickly adapt to changing customer needs. Jidoka - -Authority given to workers to stop production line if quality problems are detected. JIT system - -Three elements JIT manufacturing, TQM, and respect for people Just-in-time philosophy - -Right quantity, right place, right time JIT manufacturing - -the element of JIT that focuses on production to achieve value added manufacturing Kanban card - -A card that specifies the exact quantity of product that needs produced. Multifunction workers - -Capable of performing more than one job Poka-yoke - -Foolproof devices or mechanisms that prevent defects from occuring. Production cards - -A Kanban card that authorizes production WGU C215 Pull system - -JIT system based on a pull rather than a push system. Respect for people - -An element of JIT that considers human resources as an essential part of the philosophy Setup costs - -Costs incurred when setting up production equipment Simplicity - -The simpler a solution the better it is. Single source suppliers - -Suppliers that supply an entire family of parts to a manufacturer. Small lot production - -The ability to produce small quantities of products Types of waste - -Material, energy, time and space Uniform plant loading - -A constant production plan for a facility with a given planning horizon. Visible - -Problems must be visible to be identified and solved. Waste - - Anything that does not add value Withdrawal Cards - -A Kanban card that authorizes withdrawal of material Automated order entry system - -A method using telephone models to send digital orders to suppliers Backward integration - -Owning or controlling the source of raw materials and components WGU C215