WGU C720 Complete OA Prep Guide QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
1. Inputs: People, capital, material, money
1. Outputs: Services and goods
3. Sustainability: Defined broadly in operations and supply chain management as the ethical issues an orga-
nization faces to balance financial performance while maintaining social responsibility standards and a responsible
environmental profile.
4, VIRAL: 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 organiza-
tion must have the Aptitude (capability) and Lifespan (sustainability) to earn appropriate returns on the advantage.
5. Productivity: A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs con-
sumed to achieve those outputs.
8. 6 Types of Inventory: o Raw Materials
o Work In Progress
o Finished Goods
,0 Replacement Parts Inventory
o Supplies
o Transportation
1. Raw Materials: These parts and materials are obtained from suppliers and are used in the production
process.
8. Work-in-process (WIP): These are partly finished parts, components, sub-assemblies, or modules.
9. Finished Goods: Items are ready
to ship to the customer. No more work is required.
10. Replacement parts inventory: These are maintained to replace other parts in machinery or equip-
ment as those parts wear out
11, Supplies: 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.
1. Transportation (pipeline):: The portion of inventory that is in the process of being shipped through the
distribution system.
13. 4 Types of Demand: o Peak
o0 Seasonal
, 0 Unexpected
o Chase
14 Peak Demand: 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.
15, Seasonal Demand: 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.
16. Unexpected Demand: 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.
17. Chase Demand: 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.
18. Safety Stock: A cushion of inventory to protect against unexpected demand. In this way, they can continue to
meet customer demand without delays.
19. Stock Out: Occurs when inventory is depleted.
0. Perpetual Inventory System: 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.
0 Requires an exact inventory balance at all times
ANSWERS/ ALREADY GRADED A+
1. Inputs: People, capital, material, money
1. Outputs: Services and goods
3. Sustainability: Defined broadly in operations and supply chain management as the ethical issues an orga-
nization faces to balance financial performance while maintaining social responsibility standards and a responsible
environmental profile.
4, VIRAL: 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 organiza-
tion must have the Aptitude (capability) and Lifespan (sustainability) to earn appropriate returns on the advantage.
5. Productivity: A mathematical calculation; it is the ratio of the outputs achieved divided by the inputs con-
sumed to achieve those outputs.
8. 6 Types of Inventory: o Raw Materials
o Work In Progress
o Finished Goods
,0 Replacement Parts Inventory
o Supplies
o Transportation
1. Raw Materials: These parts and materials are obtained from suppliers and are used in the production
process.
8. Work-in-process (WIP): These are partly finished parts, components, sub-assemblies, or modules.
9. Finished Goods: Items are ready
to ship to the customer. No more work is required.
10. Replacement parts inventory: These are maintained to replace other parts in machinery or equip-
ment as those parts wear out
11, Supplies: 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.
1. Transportation (pipeline):: The portion of inventory that is in the process of being shipped through the
distribution system.
13. 4 Types of Demand: o Peak
o0 Seasonal
, 0 Unexpected
o Chase
14 Peak Demand: 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.
15, Seasonal Demand: 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.
16. Unexpected Demand: 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.
17. Chase Demand: 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.
18. Safety Stock: A cushion of inventory to protect against unexpected demand. In this way, they can continue to
meet customer demand without delays.
19. Stock Out: Occurs when inventory is depleted.
0. Perpetual Inventory System: 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.
0 Requires an exact inventory balance at all times
