WGU C720 COMPLETE OA PREP
GUIDE ACTUAL EXAM 2026
GRADED A+
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.
,Inputs - answer- People, capital, material, money
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.
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.
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
Periodic Inventory System - answer- Randomly monitors inventory levels and is also called
the fixed order interval system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain
ABC analysis - answer- Has been developed to determine which inventory items should
receive the highest level of control. By multiplying the dollar value of each item by its annual
GUIDE ACTUAL EXAM 2026
GRADED A+
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.
,Inputs - answer- People, capital, material, money
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.
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.
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
Periodic Inventory System - answer- Randomly monitors inventory levels and is also called
the fixed order interval system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain
ABC analysis - answer- Has been developed to determine which inventory items should
receive the highest level of control. By multiplying the dollar value of each item by its annual
