WGU C720 OPERATIONS AND SUPPLY
CHAIN MANAGEMENT STUDY GUIDE 2026
PRODUCTION SYSTEMS AND QUALITY
CONTROL QUESTIONS AND ANSWERS
◉ trade-offs
Answer: the underlying logic of this is that an operation cannot excel
simultaneously on all competitive dimensions; consequently,
management has to decide which parameters of performance are
critical to the firm's success and then concentrate the resources of
the firm on these particular characteristics
◉ straddling
Answer: occurs when a company seeks to match the benefits of a
successful position while maintaining its existing position; it adds
new features, services, or technologies onto the activities it already
performs
◉ supply chain risk
Answer: defined as a likelihood of a disruption that would impact
the ability of the company to continuously supply products or
services; supply chain disruptions are unplanned and unanticipated
,events that disrupt the normal flow of goods and materials within a
supply chain and expose the firm to this
◉ productivity
Answer: this is common measure of how well a country, industry, or
business unit is using its resources (or factors of production)
◉ productivity = outputs/inputs
Answer: Formula for calculating productivity
◉ partial productivity measure
Answer: this is concerned with the ratio of some output to a single
input
◉ multifactor productivity measure
Answer: this is the ratio of some output to a group of inputs (but not
all inputs)
◉ total factor measure of productivity
Answer: expression of the ration of all outputs to all inputs
◉ capacity
, Answer: the ability to hold, receive, store, or accommodate; in a
general business sense, it is most frequently viewed as the amount
of output that a system is capable of achieving over a specific period
of time
◉ strategic capacity planning
Answer: the objective of this is to provide an approach for
determining the overall capacity level of capital-intensive resources-
-facilities, equipment, and overall labor force size--that best
supports the company's long-term competitive strategy
◉ best operating level
Answer: this is the level of capacity for which process was designed
and thus is the volume of output at which average unit cost is
minimized
◉ capacity utilization rate
Answer: this reveals how close a firm is to its best operating level
◉ capacity utilization rate = capacity used/best operating level
Answer: formula for capacity utilization rate (expressed as a
percentage and requires that the numerator and denominator be
measured in the same units and time periods)
CHAIN MANAGEMENT STUDY GUIDE 2026
PRODUCTION SYSTEMS AND QUALITY
CONTROL QUESTIONS AND ANSWERS
◉ trade-offs
Answer: the underlying logic of this is that an operation cannot excel
simultaneously on all competitive dimensions; consequently,
management has to decide which parameters of performance are
critical to the firm's success and then concentrate the resources of
the firm on these particular characteristics
◉ straddling
Answer: occurs when a company seeks to match the benefits of a
successful position while maintaining its existing position; it adds
new features, services, or technologies onto the activities it already
performs
◉ supply chain risk
Answer: defined as a likelihood of a disruption that would impact
the ability of the company to continuously supply products or
services; supply chain disruptions are unplanned and unanticipated
,events that disrupt the normal flow of goods and materials within a
supply chain and expose the firm to this
◉ productivity
Answer: this is common measure of how well a country, industry, or
business unit is using its resources (or factors of production)
◉ productivity = outputs/inputs
Answer: Formula for calculating productivity
◉ partial productivity measure
Answer: this is concerned with the ratio of some output to a single
input
◉ multifactor productivity measure
Answer: this is the ratio of some output to a group of inputs (but not
all inputs)
◉ total factor measure of productivity
Answer: expression of the ration of all outputs to all inputs
◉ capacity
, Answer: the ability to hold, receive, store, or accommodate; in a
general business sense, it is most frequently viewed as the amount
of output that a system is capable of achieving over a specific period
of time
◉ strategic capacity planning
Answer: the objective of this is to provide an approach for
determining the overall capacity level of capital-intensive resources-
-facilities, equipment, and overall labor force size--that best
supports the company's long-term competitive strategy
◉ best operating level
Answer: this is the level of capacity for which process was designed
and thus is the volume of output at which average unit cost is
minimized
◉ capacity utilization rate
Answer: this reveals how close a firm is to its best operating level
◉ capacity utilization rate = capacity used/best operating level
Answer: formula for capacity utilization rate (expressed as a
percentage and requires that the numerator and denominator be
measured in the same units and time periods)
