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WGU Operations Management (C215, VDC2) Sample Questions (Q42-Q47):
NEW QUESTION # 42
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
- A. 0
- B. 1
- C. 2
- D. 3
- E. 4
Answer: E
Explanation:
Weeks of supplymeasures how long inventory will last based on average usage. It is calculated using the formula:
Weeks of Supply = (Average Inventory / Annual Cost of Goods Sold) × 52
Substituting the given values:
Weeks of Supply = (1,200,000 / 8,400,000) × 52
Weeks of Supply = 0.142857 × 52
Weeks of Supply #7.43 weeks
When rounded to the nearest whole number, the answer is7 weeks.
In Operations and Supply Chain Management, weeks of supply is a key inventory performance metric because it:
* Indicates inventory efficiency
* Helps balance service levels and holding costs
* Supports cash flow management
* Enables comparison across products or firms
Too many weeks of supply signal excess inventory and high holding costs, while too few weeks increase the risk of stockouts and service failures.
Managers use this metric alongside inventory turnover to evaluate how effectively inventory supports demand while minimizing waste.
NEW QUESTION # 43
What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?
Choose 2 answers
- A. Ensure that workers receive multifunctional training
- B. Require workers to use free time to do quality control charting
- C. Separate the cultures in the organization so there will be no conflicts
- D. Develop an incentive system to reward workers for their efforts
Answer: A,D
Explanation:
Management can assist employee focus in a JIT environment byproviding multifunctional trainingand developing incentive systems that reward performance.
Multifunctional trainingenables employees to:
* Perform multiple tasks
* Rotate between roles
* Support flexible staffing
* Respond quickly to disruptions
This flexibility is essential in JIT systems, where minimal buffers exist and disruptions must be resolved immediately.
Incentive systemsreinforce desired behaviors such as problem-solving, quality improvement, teamwork, and waste reduction. Rewards aligned with JIT objectives encourage employees to maintain discipline and continuous improvement.
The incorrect options conflict with JIT philosophy:
* Separating cultures undermines teamwork
* Forcing quality charting during free time creates resistance
Operations Management emphasizes that JIT success depends onpeople-centered management, not just technical tools.
NEW QUESTION # 44
What is the measure of how much supply chain is owned or operated by the manufacturer?
- A. Outsource integration
- B. Vertical integration
- C. Insource integration
- D. Horizontal integration
Answer: B
Explanation:
Vertical integrationmeasures how much of the supply chain isowned or controlled by the manufacturer.
In Operations and Supply Chain Management, vertical integration refers to the degree to which a firm performs activities upstream (suppliers) or downstream (distribution, retail) rather than relying on external partners. A highly vertically integrated company may own raw material sources, manufacturing plants, distribution centers, and even retail outlets.
Vertical integration affects:
* Cost structure
* Control over quality
* Lead times
* Supply reliability
* Strategic flexibility
The other options are not standard measures:
* Horizontal integration refers to acquiring competitors at the same stage
* "Insource" and "outsource integration" are not formal OM terms
Operations strategy evaluates vertical integration carefully because while it increases control, it also:
* Requires high capital investment
* Reduces flexibility
* Increases managerial complexity
Thus, vertical integration directly quantifies how much of the supply chain the manufacturer owns or operates.
NEW QUESTION # 45
What is a major factor in the decision to locate a business near its primary market territory?
- A. Proximity to a community center
- B. Proximity to labor
- C. Proximity to customers
- D. Proximity to parks
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The dominant factor in locating a business near its primary market territory isproximity to customers.
From an Operations Management perspective, closeness to customers:
* Reduces transportation and delivery time
* Improves service responsiveness
* Enhances customer satisfaction
* Supports demand growth
This is especially critical for service organizations and distribution-intensive businesses, where customer access and speed are competitive advantages.
While proximity to labor is important, it does not define market territory. Community centers and parks are not operational drivers.
Locating near customers aligns capacity with demand, minimizes logistics complexity, and strengthens market presence.
NEW QUESTION # 46
Which role do third-party logistics providers play in the supply chain?
- A. External distributors
- B. Tier two distributors
- C. Tier three distributors
- D. Internal distributors
Answer: A
Explanation:
Third-party logistics (3PL) providers act asexternal distributorsin the supply chain.
They perform logistics functions such as:
* Transportation
* Warehousing
* Distribution
* Order fulfillment
These providers operate outside the firm but integrate closely with its operations. Organizations use 3PLs to:
* Reduce capital investment
* Increase flexibility
* Access logistics expertise
* Improve service levels
Operations Management recognizes outsourcing logistics as a strategic decision that allows firms to focus on core competencies while maintaining efficient distribution networks.
NEW QUESTION # 47
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