WGU C216 Operations Management
Exam Prep 2025/2026 – 80 Verified
Questions with Correct Answers | A
Grade
Question 1
What is the primary goal of supply chain management?
A) Minimize product quality
B) Maximize production speed
C) Optimize flow of goods, information, and funds
D) Reduce employee training
Correct Answer: C) Optimize flow of goods, information, and funds
Explanation: Supply chain management aims to streamline the flow of goods, information, and
funds across suppliers, manufacturers, and customers to enhance efficiency and reduce costs.
Option C is correct. A is incorrect as quality is a priority, B focuses only on speed, and D is
unrelated.
Question 2
In lean systems, what does the term "muda" refer to?
A) Overproduction
B) Waste
C) Inventory reduction
D) Continuous improvement
Correct Answer: B) Waste
Explanation: In lean systems, "muda" refers to any activity that consumes resources without
adding value, such as defects or excess inventory. Option B is correct. A is a type of muda, C is a
goal, and D refers to "kaizen."
Question 3
,What is the formula for calculating cycle time in a production process?
A) Total production time ÷ Number of units produced
B) Number of units produced ÷ Total production time
C) Total production time × Number of units produced
D) Total production time ÷ Number of workers
Correct Answer: A) Total production time ÷ Number of units produced
Explanation: Cycle time measures the average time to produce one unit: total production time
divided by the number of units. Option A is correct. B inverts the formula, C is multiplication,
and D is unrelated.
Question 4
Which quality control tool is used to identify the most significant causes of defects?
A) Pareto chart
B) Control chart
C) Flowchart
D) Histogram
Correct Answer: A) Pareto chart
Explanation: Quality control: A Pareto chart prioritizes defect causes (80/20 rule), identifying
the most impactful issues. Option A is correct. B monitors process stability, C maps processes,
and D shows frequency distribution.
Question 5
What is a key benefit of just-in-time (JIT) inventory systems?
A) Increased inventory holding costs
B) Reduced lead times
C) Higher defect rates
D) Increased setup times
Correct Answer: B) Reduced lead times
Explanation: Lean systems: JIT minimizes inventory, reducing lead times by aligning
production with demand. Option B is correct. A increases costs, C is undesirable, and D
contradicts JIT principles.
Question 6
, Which forecasting method uses historical data to predict future trends?
A) Delphi method
B) Moving average
C) Qualitative forecasting
D) Market surveys
Correct Answer: B) Moving average
Explanation: Forecasting: Moving average uses historical data to smooth fluctuations and
predict trends. Option B is correct. A and D rely on expert opinions or surveys, C is non-
quantitative.
Question 7
What does the bullwhip effect in supply chains describe?
A) Consistent demand across the chain
B) Amplified demand variability upstream
C) Reduced inventory levels
D) Improved supplier coordination
Correct Answer: B) Amplified demand variability upstream
Explanation: Supply chain: The bullwhip effect occurs when small demand changes at the retail
level cause larger variations upstream, leading to inefficiencies. Option B is correct. A, C, and D
are inaccurate.
Question 8
In a Kanban system, what signals the need to replenish inventory?
A) Production schedule
B) Kanban card
C) Supplier contract
D) Quality inspection
Correct Answer: B) Kanban card
Explanation: Lean systems: Kanban cards signal when inventory needs replenishment,
controlling production flow. Option B is correct. A, C, and D are not part of Kanban signaling.
Question 9
Exam Prep 2025/2026 – 80 Verified
Questions with Correct Answers | A
Grade
Question 1
What is the primary goal of supply chain management?
A) Minimize product quality
B) Maximize production speed
C) Optimize flow of goods, information, and funds
D) Reduce employee training
Correct Answer: C) Optimize flow of goods, information, and funds
Explanation: Supply chain management aims to streamline the flow of goods, information, and
funds across suppliers, manufacturers, and customers to enhance efficiency and reduce costs.
Option C is correct. A is incorrect as quality is a priority, B focuses only on speed, and D is
unrelated.
Question 2
In lean systems, what does the term "muda" refer to?
A) Overproduction
B) Waste
C) Inventory reduction
D) Continuous improvement
Correct Answer: B) Waste
Explanation: In lean systems, "muda" refers to any activity that consumes resources without
adding value, such as defects or excess inventory. Option B is correct. A is a type of muda, C is a
goal, and D refers to "kaizen."
Question 3
,What is the formula for calculating cycle time in a production process?
A) Total production time ÷ Number of units produced
B) Number of units produced ÷ Total production time
C) Total production time × Number of units produced
D) Total production time ÷ Number of workers
Correct Answer: A) Total production time ÷ Number of units produced
Explanation: Cycle time measures the average time to produce one unit: total production time
divided by the number of units. Option A is correct. B inverts the formula, C is multiplication,
and D is unrelated.
Question 4
Which quality control tool is used to identify the most significant causes of defects?
A) Pareto chart
B) Control chart
C) Flowchart
D) Histogram
Correct Answer: A) Pareto chart
Explanation: Quality control: A Pareto chart prioritizes defect causes (80/20 rule), identifying
the most impactful issues. Option A is correct. B monitors process stability, C maps processes,
and D shows frequency distribution.
Question 5
What is a key benefit of just-in-time (JIT) inventory systems?
A) Increased inventory holding costs
B) Reduced lead times
C) Higher defect rates
D) Increased setup times
Correct Answer: B) Reduced lead times
Explanation: Lean systems: JIT minimizes inventory, reducing lead times by aligning
production with demand. Option B is correct. A increases costs, C is undesirable, and D
contradicts JIT principles.
Question 6
, Which forecasting method uses historical data to predict future trends?
A) Delphi method
B) Moving average
C) Qualitative forecasting
D) Market surveys
Correct Answer: B) Moving average
Explanation: Forecasting: Moving average uses historical data to smooth fluctuations and
predict trends. Option B is correct. A and D rely on expert opinions or surveys, C is non-
quantitative.
Question 7
What does the bullwhip effect in supply chains describe?
A) Consistent demand across the chain
B) Amplified demand variability upstream
C) Reduced inventory levels
D) Improved supplier coordination
Correct Answer: B) Amplified demand variability upstream
Explanation: Supply chain: The bullwhip effect occurs when small demand changes at the retail
level cause larger variations upstream, leading to inefficiencies. Option B is correct. A, C, and D
are inaccurate.
Question 8
In a Kanban system, what signals the need to replenish inventory?
A) Production schedule
B) Kanban card
C) Supplier contract
D) Quality inspection
Correct Answer: B) Kanban card
Explanation: Lean systems: Kanban cards signal when inventory needs replenishment,
controlling production flow. Option B is correct. A, C, and D are not part of Kanban signaling.
Question 9
