WGU C720 OA QUESTIONS AND ANSWERS 2025
Inputs - (ANSWER)People, capital, material, money
Outputs - (ANSWER)Services and goods
Sustainability - (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.
VIRAL - (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.
Productivity - (ANSWER)A mathematical calculation; it is the ratio of the outputs achieved divided by the
inputs consumed to achieve those outputs.
6 Types of Inventory - (ANSWER)o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - (ANSWER)These parts and materials are obtained from suppliers and are used in the
production process.
,WGU C720 OA QUESTIONS AND ANSWERS 2025
Work-in-process (WIP) - (ANSWER)These are partly finished parts, components, sub-assemblies, or
modules.
Finished Goods - (ANSWER)Items are ready to ship to the customer. No more work is required.
Replacement parts inventory - (ANSWER)These are maintained to replace other parts in machinery or
equipment as those parts wear out
Supplies - (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.
Transportation (pipeline): - (ANSWER)The portion of inventory that is in the process of being shipped
through the distribution system.
4 Types of Demand - (ANSWER)o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand - (ANSWER)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.
Seasonal Demand - (ANSWER)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.
Unexpected Demand - (ANSWER)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.
, WGU C720 OA QUESTIONS AND ANSWERS 2025
Chase Demand - (ANSWER)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.
Safety Stock - (ANSWER)A cushion of inventory to protect against unexpected demand. In this way, they
can continue to meet customer demand without delays.
Stock Out - (ANSWER)Occurs when inventory is depleted.
Perpetual Inventory System - (ANSWER)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.
o Requires an exact inventory balance at all times
o Best for big businesses, retail stores, or banks
o High value and high volume
o Expensive to implement and maintain
Periodic Inventory System - (ANSWER)Randomly monitors inventory levels and is also called the fixed
order interval system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain
Inputs - (ANSWER)People, capital, material, money
Outputs - (ANSWER)Services and goods
Sustainability - (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.
VIRAL - (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.
Productivity - (ANSWER)A mathematical calculation; it is the ratio of the outputs achieved divided by the
inputs consumed to achieve those outputs.
6 Types of Inventory - (ANSWER)o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
Raw Materials - (ANSWER)These parts and materials are obtained from suppliers and are used in the
production process.
,WGU C720 OA QUESTIONS AND ANSWERS 2025
Work-in-process (WIP) - (ANSWER)These are partly finished parts, components, sub-assemblies, or
modules.
Finished Goods - (ANSWER)Items are ready to ship to the customer. No more work is required.
Replacement parts inventory - (ANSWER)These are maintained to replace other parts in machinery or
equipment as those parts wear out
Supplies - (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.
Transportation (pipeline): - (ANSWER)The portion of inventory that is in the process of being shipped
through the distribution system.
4 Types of Demand - (ANSWER)o Peak
o Seasonal
o Unexpected
o Chase
Peak Demand - (ANSWER)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.
Seasonal Demand - (ANSWER)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.
Unexpected Demand - (ANSWER)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.
, WGU C720 OA QUESTIONS AND ANSWERS 2025
Chase Demand - (ANSWER)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.
Safety Stock - (ANSWER)A cushion of inventory to protect against unexpected demand. In this way, they
can continue to meet customer demand without delays.
Stock Out - (ANSWER)Occurs when inventory is depleted.
Perpetual Inventory System - (ANSWER)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.
o Requires an exact inventory balance at all times
o Best for big businesses, retail stores, or banks
o High value and high volume
o Expensive to implement and maintain
Periodic Inventory System - (ANSWER)Randomly monitors inventory levels and is also called the fixed
order interval system.
o Requires a physical count periodically
o Used when a supplier will only deliver at specific time intervals
o Low value and volume
o Used for small businesses
o Inexpensive to implement and maintain
