BCOR 360 FINAL EXAM 2024 QUESTIONS AND ANSWERS
Business forecasting is the process of using _____________, _____________, ____________,
and experience to make predictions and respond to various business needs. - CORRECT
ANSWER✅✅✅b. Analytics, data, insights
A forecast error is - CORRECT ANSWER✅✅✅c. The difference between what you predict
and what actually happens.
Almost every decision you make in business is based on a forecast. - CORRECT
ANSWER✅✅✅True
If your product is relatively new and your data is limited, your best option is to... - CORRECT
ANSWER✅✅✅f. Either A or B (Look at sales history of similar products or use qualitative
data)
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient.
You need to choose the right _______________ to make the most of your data. - CORRECT
ANSWER✅✅✅d. Forecasting technique
Inventory strategy should - CORRECT ANSWER✅✅✅Depend on a company's competitive
goals.
Factors that tend to reduce the need for inventory include - CORRECT
ANSWER✅✅✅Decreasing supply uncertainty.
Inventory performance can be improved by - CORRECT ANSWER✅✅✅Using forecasting
effectively.
Cycle inventory is most closely associate with - CORRECT ANSWER✅✅✅Order
quantities
,Reasons to keep inventory include - CORRECT ANSWER✅✅✅Responding to uncertain
demand.
Cycle Service Level is measured in terms of - CORRECT ANSWER✅✅✅Probability of
meeting demand.
______ measures the ability to meet demand from inventory. - CORRECT
ANSWER✅✅✅Fill Rate
If the average value of inventory is reduced, _____ will go up. - CORRECT
ANSWER✅✅✅Inventory Turnover
Which of the following might be expected to be an 'A' class SKU at a university? - CORRECT
ANSWER✅✅✅A $5,000 microscope.
ABC analysis - CORRECT ANSWER✅✅✅Tailors ordering practices based on relative item
value.
If demand is normally distributed with mean demand = 12 units/week, standard deviation = 3
units/week, supply lead time is 2 weeks, and the desired CSL is 90%, the amount of safety stock
needed will be equal to - CORRECT ANSWER✅✅✅6
If demand is normally distributed with mean demand = 20 units/week, standard deviation = 4
units/week, supply lead time is 3 weeks, and the desired CSL is 99%, the reorder point should be
approximately equal to - CORRECT ANSWER✅✅✅76
According to the EOQ model, as order quantity increases - CORRECT
ANSWER✅✅✅Average cycle inventory increases.
The most effective way to reduce the value of the EOQ is to - CORRECT
ANSWER✅✅✅Reduce the order costs.
, If D = 30 units/week, K = $120/order, and H = $1.5/unit/year, the EOQ will be approximately
equal to (assume 52 weeks) - CORRECT ANSWER✅✅✅500
Which of the following is a good reason to carry inventory? - CORRECT ANSWER✅✅✅e.
All of the above
Carrying too much inventory or the wrong inventory can lead to which of he following? -
CORRECT ANSWER✅✅✅f. A, B, & C only
Which of the following is not a commonly used metric used to evaluate inventory performance?
- CORRECT ANSWER✅✅✅c. Cash-to-cash cycle time
Inventory Turnover is defined as Current Inventory/Average Daily Usage. - CORRECT
ANSWER✅✅✅False
In an ABC analysis of a firm's SKUs, C items make up 20% of the total SKU count and
collectively account for 80% of total usage. - CORRECT ANSWER✅✅✅False
Which of the following is the most effective and productive way to reduce the optimal order
quantity (Q)? - CORRECT ANSWER✅✅✅b. Reduce order or set-up costs
What is your economic order quantity if the annual demand is 100 units, the order placement
cost is $25, and the holding cost per unit per year is $50? - CORRECT ANSWER✅✅✅a. 10
units
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following
accurately describes the decision-making environment? - CORRECT ANSWER✅✅✅a. The
annual number of order placements will be 8, and average inventory levels will be 1,500
Business forecasting is the process of using _____________, _____________, ____________,
and experience to make predictions and respond to various business needs. - CORRECT
ANSWER✅✅✅b. Analytics, data, insights
A forecast error is - CORRECT ANSWER✅✅✅c. The difference between what you predict
and what actually happens.
Almost every decision you make in business is based on a forecast. - CORRECT
ANSWER✅✅✅True
If your product is relatively new and your data is limited, your best option is to... - CORRECT
ANSWER✅✅✅f. Either A or B (Look at sales history of similar products or use qualitative
data)
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient.
You need to choose the right _______________ to make the most of your data. - CORRECT
ANSWER✅✅✅d. Forecasting technique
Inventory strategy should - CORRECT ANSWER✅✅✅Depend on a company's competitive
goals.
Factors that tend to reduce the need for inventory include - CORRECT
ANSWER✅✅✅Decreasing supply uncertainty.
Inventory performance can be improved by - CORRECT ANSWER✅✅✅Using forecasting
effectively.
Cycle inventory is most closely associate with - CORRECT ANSWER✅✅✅Order
quantities
,Reasons to keep inventory include - CORRECT ANSWER✅✅✅Responding to uncertain
demand.
Cycle Service Level is measured in terms of - CORRECT ANSWER✅✅✅Probability of
meeting demand.
______ measures the ability to meet demand from inventory. - CORRECT
ANSWER✅✅✅Fill Rate
If the average value of inventory is reduced, _____ will go up. - CORRECT
ANSWER✅✅✅Inventory Turnover
Which of the following might be expected to be an 'A' class SKU at a university? - CORRECT
ANSWER✅✅✅A $5,000 microscope.
ABC analysis - CORRECT ANSWER✅✅✅Tailors ordering practices based on relative item
value.
If demand is normally distributed with mean demand = 12 units/week, standard deviation = 3
units/week, supply lead time is 2 weeks, and the desired CSL is 90%, the amount of safety stock
needed will be equal to - CORRECT ANSWER✅✅✅6
If demand is normally distributed with mean demand = 20 units/week, standard deviation = 4
units/week, supply lead time is 3 weeks, and the desired CSL is 99%, the reorder point should be
approximately equal to - CORRECT ANSWER✅✅✅76
According to the EOQ model, as order quantity increases - CORRECT
ANSWER✅✅✅Average cycle inventory increases.
The most effective way to reduce the value of the EOQ is to - CORRECT
ANSWER✅✅✅Reduce the order costs.
, If D = 30 units/week, K = $120/order, and H = $1.5/unit/year, the EOQ will be approximately
equal to (assume 52 weeks) - CORRECT ANSWER✅✅✅500
Which of the following is a good reason to carry inventory? - CORRECT ANSWER✅✅✅e.
All of the above
Carrying too much inventory or the wrong inventory can lead to which of he following? -
CORRECT ANSWER✅✅✅f. A, B, & C only
Which of the following is not a commonly used metric used to evaluate inventory performance?
- CORRECT ANSWER✅✅✅c. Cash-to-cash cycle time
Inventory Turnover is defined as Current Inventory/Average Daily Usage. - CORRECT
ANSWER✅✅✅False
In an ABC analysis of a firm's SKUs, C items make up 20% of the total SKU count and
collectively account for 80% of total usage. - CORRECT ANSWER✅✅✅False
Which of the following is the most effective and productive way to reduce the optimal order
quantity (Q)? - CORRECT ANSWER✅✅✅b. Reduce order or set-up costs
What is your economic order quantity if the annual demand is 100 units, the order placement
cost is $25, and the holding cost per unit per year is $50? - CORRECT ANSWER✅✅✅a. 10
units
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following
accurately describes the decision-making environment? - CORRECT ANSWER✅✅✅a. The
annual number of order placements will be 8, and average inventory levels will be 1,500
