WGU C720 COMPLETE OA PREP GUIDE
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📋 DOCUMENT OVERVIEW 153 Qs
This document covers operations and supply chain management topics, including inputs and outputs,
sustainability, competitive advantage, productivity, inventory management, supply chain management,
logistics, level assembly schedules, and cycle time. The "WGU C720 Complete OA Prep Guide" provides
153 multiple-choice questions with correct answers and detailed explanations, offering a comprehensive
review of these concepts. Students can utilize this document to study, review, and deepen their
understanding of operations and supply chain management principles, making it an effective resource
for exam preparation.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
Inputs
CORRECT ANSWER
People, capital, material, money
RATIONALE: The concept of "inputs" refers to the resources and factors that are required to produce goods or services,
and the combination of people, capital, material, and money accurately represents the major categories of these
resources. This is because people provide labor, capital supplies equipment and machinery, materials provide the
necessary components for production, and money enables the acquisition of goods and services needed for production,
making this combination a comprehensive representation of inputs.
QUESTION 2
Outputs
CORRECT ANSWER
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, Services and goods
RATIONALE: The correct answer is "Services and goods" because it accurately represents the tangible and intangible
products that businesses produce to meet customer needs and generate revenue. In economics, outputs refer to the
goods and services that result from the production process, making "services and goods" a comprehensive and correct
description of outputs.
QUESTION 3
Sustainability
CORRECT 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.
RATIONALE: This definition of sustainability captures the essence of the concept because it encompasses the triple
bottom line, which refers to the balance between financial performance, social responsibility, and environmental impact.
By including these three interdependent aspects, the definition acknowledges that sustainability is not solely focused on
environmental concerns, but rather a holistic approach that considers the organization's effects on people and the
planet.
QUESTION 4
VIRAL
CORRECT 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.
RATIONALE: The correct answer is an acronym representing the framework for competitive advantage, which explains
that a sustainable advantage must provide value to consumers, be difficult to imitate, scarce, and possessed by the
organization, while also being sustainable over time. This acronym effectively encapsulates a strategic management
concept that highlights the essential characteristics of a competitive advantage.
QUESTION 5
Productivity
CORRECT ANSWER
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed to
achieve those outputs.
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, RATIONALE: Productivity is a measure of efficiency, which is achieved by comparing the outputs generated to the inputs
required, essentially quantifying the amount of output produced per unit of input consumed. This calculation helps to
evaluate how well resources are utilized and how effectively they contribute to the desired outcomes, making it a
fundamental concept in economics and various fields of study.
QUESTION 6
6 Types of Inventory
CORRECT ANSWER
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
RATIONALE: The six types of inventory mentioned are comprehensive categories that cover all the various stages and
components of a company's inventory, from the raw materials used in production to finished goods, supplies, and
replacement parts. This classification system helps businesses effectively manage their inventory levels, track costs, and
optimize productivity by acknowledging the different forms inventory can take within the supply chain.
QUESTION 7
Raw Materials
CORRECT ANSWER
These parts and materials are obtained from suppliers and are used in the production process.
RATIONALE: This answer is correct because the question "Raw Materials" refers to the initial or basic materials used to
create a product, which in this case are obtained from suppliers and utilized in the production process. The statement
explicitly identifies these materials as being sourced from suppliers and used in production, making it a clear and
accurate description of raw materials.
QUESTION 8
Work-in-process (WIP)
CORRECT ANSWER
These are partly finished parts, components, sub-assemblies, or modules.
RATIONALE: Work-in-process (WIP) refers to items that are being processed or manufactured but are not yet complete,
making "These are partly finished parts, components, sub-assemblies, or modules" a correct description as it accurately
represents the state of unfinished goods in production. This definition captures the essence of WIP, which involves
materials or products that are in the midst of transformation from raw materials to finished products.
QUESTION 9
Finished Goods
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, CORRECT ANSWER
Items are ready to ship to the customer. No more work is required.
RATIONALE: This answer is correct because "Finished Goods" refers to products that have completed the production
process and are ready for distribution or sale, aligning with the statement that no more work is required before
shipping. The key concept is that Finished Goods are products that have reached their final state, requiring only delivery
or sale to the customer.
QUESTION 10
Replacement parts inventory
CORRECT ANSWER
These are maintained to replace other parts in machinery or equipment as those parts wear out
RATIONALE: The correct answer is accurate because replacement parts inventory refers to a stockpile of spare or
redundant components that are kept on hand to replace worn-out or damaged parts in machinery or equipment,
ensuring minimal downtime and efficient operation. This practice helps maintain the overall functionality and reliability
of the equipment by having a readily available supply of identical or compatible parts.
QUESTION 11
Supplies
CORRECT 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.
RATIONALE: This definition is correct because supplies refer to items that support the production process, but are not a
part of the final product itself. The key characteristic of supplies is that they are consumed or used up during the
production process, such as lubricants and cutting tools, rather than being a permanent component of the product.
QUESTION 12
Transportation (pipeline):
CORRECT ANSWER
The portion of inventory that is in the process of being shipped through the distribution system.
RATIONALE: This description refers to the "pipeline" concept in inventory management, which involves the portion of
inventory that is in transit, meaning it has been shipped and is currently being moved through the distribution system
but has not yet been delivered to its destination. The pipeline concept helps businesses account for inventory that is in
the process of being transported to ensure accurate inventory levels and prevent overstocking.
QUESTION 13
4 Types of Demand
CORRECT ANSWER
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150+ (Latest Syllabus 2026) Exam Questions | Verified Model Answers |
A+ Graded Bank
100% Guarantee Pass
📋 DOCUMENT OVERVIEW 153 Qs
This document covers operations and supply chain management topics, including inputs and outputs,
sustainability, competitive advantage, productivity, inventory management, supply chain management,
logistics, level assembly schedules, and cycle time. The "WGU C720 Complete OA Prep Guide" provides
153 multiple-choice questions with correct answers and detailed explanations, offering a comprehensive
review of these concepts. Students can utilize this document to study, review, and deepen their
understanding of operations and supply chain management principles, making it an effective resource
for exam preparation.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
Inputs
CORRECT ANSWER
People, capital, material, money
RATIONALE: The concept of "inputs" refers to the resources and factors that are required to produce goods or services,
and the combination of people, capital, material, and money accurately represents the major categories of these
resources. This is because people provide labor, capital supplies equipment and machinery, materials provide the
necessary components for production, and money enables the acquisition of goods and services needed for production,
making this combination a comprehensive representation of inputs.
QUESTION 2
Outputs
CORRECT ANSWER
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, Services and goods
RATIONALE: The correct answer is "Services and goods" because it accurately represents the tangible and intangible
products that businesses produce to meet customer needs and generate revenue. In economics, outputs refer to the
goods and services that result from the production process, making "services and goods" a comprehensive and correct
description of outputs.
QUESTION 3
Sustainability
CORRECT 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.
RATIONALE: This definition of sustainability captures the essence of the concept because it encompasses the triple
bottom line, which refers to the balance between financial performance, social responsibility, and environmental impact.
By including these three interdependent aspects, the definition acknowledges that sustainability is not solely focused on
environmental concerns, but rather a holistic approach that considers the organization's effects on people and the
planet.
QUESTION 4
VIRAL
CORRECT 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.
RATIONALE: The correct answer is an acronym representing the framework for competitive advantage, which explains
that a sustainable advantage must provide value to consumers, be difficult to imitate, scarce, and possessed by the
organization, while also being sustainable over time. This acronym effectively encapsulates a strategic management
concept that highlights the essential characteristics of a competitive advantage.
QUESTION 5
Productivity
CORRECT ANSWER
A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs consumed to
achieve those outputs.
Trusted by thousands of students and professionals worldwide Page 2 of 43
, RATIONALE: Productivity is a measure of efficiency, which is achieved by comparing the outputs generated to the inputs
required, essentially quantifying the amount of output produced per unit of input consumed. This calculation helps to
evaluate how well resources are utilized and how effectively they contribute to the desired outcomes, making it a
fundamental concept in economics and various fields of study.
QUESTION 6
6 Types of Inventory
CORRECT ANSWER
o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
RATIONALE: The six types of inventory mentioned are comprehensive categories that cover all the various stages and
components of a company's inventory, from the raw materials used in production to finished goods, supplies, and
replacement parts. This classification system helps businesses effectively manage their inventory levels, track costs, and
optimize productivity by acknowledging the different forms inventory can take within the supply chain.
QUESTION 7
Raw Materials
CORRECT ANSWER
These parts and materials are obtained from suppliers and are used in the production process.
RATIONALE: This answer is correct because the question "Raw Materials" refers to the initial or basic materials used to
create a product, which in this case are obtained from suppliers and utilized in the production process. The statement
explicitly identifies these materials as being sourced from suppliers and used in production, making it a clear and
accurate description of raw materials.
QUESTION 8
Work-in-process (WIP)
CORRECT ANSWER
These are partly finished parts, components, sub-assemblies, or modules.
RATIONALE: Work-in-process (WIP) refers to items that are being processed or manufactured but are not yet complete,
making "These are partly finished parts, components, sub-assemblies, or modules" a correct description as it accurately
represents the state of unfinished goods in production. This definition captures the essence of WIP, which involves
materials or products that are in the midst of transformation from raw materials to finished products.
QUESTION 9
Finished Goods
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, CORRECT ANSWER
Items are ready to ship to the customer. No more work is required.
RATIONALE: This answer is correct because "Finished Goods" refers to products that have completed the production
process and are ready for distribution or sale, aligning with the statement that no more work is required before
shipping. The key concept is that Finished Goods are products that have reached their final state, requiring only delivery
or sale to the customer.
QUESTION 10
Replacement parts inventory
CORRECT ANSWER
These are maintained to replace other parts in machinery or equipment as those parts wear out
RATIONALE: The correct answer is accurate because replacement parts inventory refers to a stockpile of spare or
redundant components that are kept on hand to replace worn-out or damaged parts in machinery or equipment,
ensuring minimal downtime and efficient operation. This practice helps maintain the overall functionality and reliability
of the equipment by having a readily available supply of identical or compatible parts.
QUESTION 11
Supplies
CORRECT 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.
RATIONALE: This definition is correct because supplies refer to items that support the production process, but are not a
part of the final product itself. The key characteristic of supplies is that they are consumed or used up during the
production process, such as lubricants and cutting tools, rather than being a permanent component of the product.
QUESTION 12
Transportation (pipeline):
CORRECT ANSWER
The portion of inventory that is in the process of being shipped through the distribution system.
RATIONALE: This description refers to the "pipeline" concept in inventory management, which involves the portion of
inventory that is in transit, meaning it has been shipped and is currently being moved through the distribution system
but has not yet been delivered to its destination. The pipeline concept helps businesses account for inventory that is in
the process of being transported to ensure accurate inventory levels and prevent overstocking.
QUESTION 13
4 Types of Demand
CORRECT ANSWER
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