WGU C720 OA EVALUATION 2026 EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Third-Party Logistics (3PL) - ✔✔Outsourcing logistics to third-parties.
✔✔Radio-Frequency Identification - ✔✔Using electromagnetic fields to identify and
track tags attached to objects.
✔✔Capacity - ✔✔A measure of an organization's ability to provide customers with
goods in the amount requested and in a timely manner, given current resources; the
maximum sustainable rate of production.
✔✔Capacity Planning - ✔✔Planning an organization's ability to deliver at capacity;
significant capital is usually involved to build facilities and purchase equipment; require
careful consideration of long-term objectives, current demand, and long-term demand.
✔✔Product Mix - ✔✔Different products produced on the same equipment.
✔✔System Capacity - ✔✔The ability of an organization to produce a sufficient number
of goods to meet customer demands.
✔✔Department - ✔✔A portion of the production system.
, ✔✔Product Layout - ✔✔A process that is characterized by high demand for the same or
similar products; for example, the process of continuously producing paper along the
supply chain; this system often measures output as the number of items produced per
day.
✔✔Process Layout - ✔✔A process that is characterized by the production of many
different products with the same equipment and low volume for each product; an
example is a car repair shop that offer a variety of services; this system often measures
output as completed orders per day.
✔✔Design Capacity - ✔✔The maximum achievable output of a process under ideal
conditions for a short period of time.
✔✔Effective Capacity - ✔✔The maximum achievable output given the product mix,
equipment changeovers, and downtime.
✔✔Capacity Utilization - ✔✔Actual Output / Design Capacity; used to measure how
much capacity is actually being used on an average basis.
✔✔Actual Output - ✔✔The effective capacity minus additional factors that reduce
production, such as a fuel stop.
✔✔Efficiency - ✔✔Actual Output / Effective Capacity; used to measure how much
effective capacity is being used to achieve output.
✔✔Eliyahu Goldratt - ✔✔An Israeli physicist who developed the Theory of Constraints
(TOC).
✔✔Theory of Constraints (TOC) - ✔✔A five-step process that helps a firm optimal
throughput by identifying and fixing bottlenecks; includes 1) finding constraints, 2)
exploit the constraints (get at 100% capacity), 3) subordinate everything else to decision
(communicate to everyone), 4) elevate the constraint (how to increase capacity), and 5)
repeat (find a different bottleneck, for continuous improvement).
✔✔Throughput - ✔✔The state where output is as close to the system capacity as
possible.
✔✔Facility Location - ✔✔The placement of a facility with regards to a company's
customers, suppliers, and other facilities; should be a long-term, strategic investment.
✔✔Regional Facility Strategy - ✔✔Requires that each production facility has a defined
marketing area that produces a complete line of products for that area; used when
customer convenience is important, or when transportation costs are high.
QUESTIONS AND ANSWERS SURE A+
✔✔Third-Party Logistics (3PL) - ✔✔Outsourcing logistics to third-parties.
✔✔Radio-Frequency Identification - ✔✔Using electromagnetic fields to identify and
track tags attached to objects.
✔✔Capacity - ✔✔A measure of an organization's ability to provide customers with
goods in the amount requested and in a timely manner, given current resources; the
maximum sustainable rate of production.
✔✔Capacity Planning - ✔✔Planning an organization's ability to deliver at capacity;
significant capital is usually involved to build facilities and purchase equipment; require
careful consideration of long-term objectives, current demand, and long-term demand.
✔✔Product Mix - ✔✔Different products produced on the same equipment.
✔✔System Capacity - ✔✔The ability of an organization to produce a sufficient number
of goods to meet customer demands.
✔✔Department - ✔✔A portion of the production system.
, ✔✔Product Layout - ✔✔A process that is characterized by high demand for the same or
similar products; for example, the process of continuously producing paper along the
supply chain; this system often measures output as the number of items produced per
day.
✔✔Process Layout - ✔✔A process that is characterized by the production of many
different products with the same equipment and low volume for each product; an
example is a car repair shop that offer a variety of services; this system often measures
output as completed orders per day.
✔✔Design Capacity - ✔✔The maximum achievable output of a process under ideal
conditions for a short period of time.
✔✔Effective Capacity - ✔✔The maximum achievable output given the product mix,
equipment changeovers, and downtime.
✔✔Capacity Utilization - ✔✔Actual Output / Design Capacity; used to measure how
much capacity is actually being used on an average basis.
✔✔Actual Output - ✔✔The effective capacity minus additional factors that reduce
production, such as a fuel stop.
✔✔Efficiency - ✔✔Actual Output / Effective Capacity; used to measure how much
effective capacity is being used to achieve output.
✔✔Eliyahu Goldratt - ✔✔An Israeli physicist who developed the Theory of Constraints
(TOC).
✔✔Theory of Constraints (TOC) - ✔✔A five-step process that helps a firm optimal
throughput by identifying and fixing bottlenecks; includes 1) finding constraints, 2)
exploit the constraints (get at 100% capacity), 3) subordinate everything else to decision
(communicate to everyone), 4) elevate the constraint (how to increase capacity), and 5)
repeat (find a different bottleneck, for continuous improvement).
✔✔Throughput - ✔✔The state where output is as close to the system capacity as
possible.
✔✔Facility Location - ✔✔The placement of a facility with regards to a company's
customers, suppliers, and other facilities; should be a long-term, strategic investment.
✔✔Regional Facility Strategy - ✔✔Requires that each production facility has a defined
marketing area that produces a complete line of products for that area; used when
customer convenience is important, or when transportation costs are high.
