WGU C720 OPERATIONS AND SUPPLY
CHAIN MANAGEMENT EXAM PREP 2026
SUPPLY NETWORK DESIGN COMPLETE
SOLUTIONS AND ANALYSIS
◉ inventory turn
Answer: the cost of goods sold divided by the average inventory sale,
it is a good measure of the total value of the inventory
◉ Little's Law
Answer: this says that there is a long-term relationship between the
inventory, throughput, and flow time of a production system in a
steady state
◉ Inventory = Throughput time x flow time
Answer: formula for Little's Law
◉ throughput
Answer: this is the long-term average rate that items are flowing
through the process (inventory)
◉ flow time
, Answer: this is the time that it takes a unit to flow through a process
from beginning to end (inventory)
◉ steady state
Answer: Little's law assumes that the process is operating in this,
meaning that over a long enough period of time the amount that is
produced by the factory is equal to the amount shipped to customers
◉ project layout
Answer: in this kind of process organization, the product (by virtue
of bulk or weight) remains in a fixed location and manufacturing
equipment is moved to the product rather than vice versa
◉ workcenter layout
Answer: in this kind of process organization, sometimes referred to
as a job shop, is where similar equipment or functions are group
together, such as all drilling machines in one area and stamping
machines in another
◉ manufacturing cell layout
Answer: in this kind of process organization, there is a dedicated
area where products that are similar in processing requirements are
produced and these cells are designed to perform a specific set of
processes and the cells are dedicated to a limited range of products
CHAIN MANAGEMENT EXAM PREP 2026
SUPPLY NETWORK DESIGN COMPLETE
SOLUTIONS AND ANALYSIS
◉ inventory turn
Answer: the cost of goods sold divided by the average inventory sale,
it is a good measure of the total value of the inventory
◉ Little's Law
Answer: this says that there is a long-term relationship between the
inventory, throughput, and flow time of a production system in a
steady state
◉ Inventory = Throughput time x flow time
Answer: formula for Little's Law
◉ throughput
Answer: this is the long-term average rate that items are flowing
through the process (inventory)
◉ flow time
, Answer: this is the time that it takes a unit to flow through a process
from beginning to end (inventory)
◉ steady state
Answer: Little's law assumes that the process is operating in this,
meaning that over a long enough period of time the amount that is
produced by the factory is equal to the amount shipped to customers
◉ project layout
Answer: in this kind of process organization, the product (by virtue
of bulk or weight) remains in a fixed location and manufacturing
equipment is moved to the product rather than vice versa
◉ workcenter layout
Answer: in this kind of process organization, sometimes referred to
as a job shop, is where similar equipment or functions are group
together, such as all drilling machines in one area and stamping
machines in another
◉ manufacturing cell layout
Answer: in this kind of process organization, there is a dedicated
area where products that are similar in processing requirements are
produced and these cells are designed to perform a specific set of
processes and the cells are dedicated to a limited range of products
