BCOR 360 Exam 3 Questions with Correct Answers Latest Update 2025
Which of the following should your inventory strategy accomplish?
focus on keeping lots of inventory
enable or support your company's competitive strategy
provide for continuity; i.e., not change over time
Avoid running out at all costs - Answers enable or support your company's competitive strategy
Which of the following helps you improve inventory performance?
managing all of your SKUs in the same way
improving forecasting accuracy
having as large a warehouse as possible
storing a SKU in multiple locations at the same time - Answers improve forecasting accuracy
Which of the following is a reason to keep inventory?
to help you respond to uncertain demand
to fill empty warehouses
to keep people busy
to make sure bad parts never slow down operations - Answers to help you respond to uncertain demand
Factors that tend to reduce the need for inventory include which of the following?
Increasing supply lead times
Decreasing supply uncertainty
Increasing number of new SKUs
Decreasing SKU cost - Answers decrease supply uncertainty
Cycle inventory is most closely associated with which of the following?
Unreliable suppliers
Demand growth
Order quantities
,In-transit inventory - Answers order quantities
Which of the following best describes ABC analysis?
ABC analysis helps you tailor ordering practices based on relative item values.
ABC analysis is a one size fits all approach to managing SKUs.
ABC analysis uses letters instead of numbers or names to identify SKUs.
ABC analysis requires the use of complex algorithms. - Answers ABC analysis helps you tailor ordering
practices based on relative item values.
Which of the following might be expected to be an 'A' item SKU at a university?
a ream of paper
a particular type of pen
a $30,000 vehicle
a computer monitor - Answers a $30,000 vehicle
Which of the following statements about 'A', 'B', and 'C' items is correct?
'A', 'B', and 'C' items are ordered with the same frequency.
The most valuable items are 'B' items.
'A' items are generally ordered in small quantities.
'C' items are tightly monitored. - Answers 'A" items are generally ordered in small quantities
ABC classification is based on which of the following?
value of item use relative to total value of items used
units of annual item use
item value
value of annual item use - Answers value of item use relative to total value of items used
There will generally be few ___ items and many ___ items.
'C', 'B'
'B', 'A'
'A', 'C'
, 'C', 'A' - Answers A, C
______ measures the ability to fulfil an order from inventory.
Inventory turnover
Fill rate
Days of supply
Stockout risk - Answers fill risk
Tracking your days of inventory supply can help you align production to market demand. However, it
provides no insight to help you manage risk.
TrueFalse - Answers false
If the average value of inventory is reduced, which of the following will go up?
inventory turnover
cycle service level
fill rate
cost of goods sold - Answers inventory turnover
If the annual cost of goods sold goes down by 10%, to maintain the same inventory turnover ratio, the
average value of inventory will need to increase by 10%.
true/false - Answers false
The ______ measures inventory relative to average demand.
days of inventory supply
fill rate
inventory turnover
cycle service level - Answers cycle service level
According to the EOQ model, what happens when your order quantity increases?
Total annual costs increase
Annual ordering costs increase
Average cycle inventory increases
Which of the following should your inventory strategy accomplish?
focus on keeping lots of inventory
enable or support your company's competitive strategy
provide for continuity; i.e., not change over time
Avoid running out at all costs - Answers enable or support your company's competitive strategy
Which of the following helps you improve inventory performance?
managing all of your SKUs in the same way
improving forecasting accuracy
having as large a warehouse as possible
storing a SKU in multiple locations at the same time - Answers improve forecasting accuracy
Which of the following is a reason to keep inventory?
to help you respond to uncertain demand
to fill empty warehouses
to keep people busy
to make sure bad parts never slow down operations - Answers to help you respond to uncertain demand
Factors that tend to reduce the need for inventory include which of the following?
Increasing supply lead times
Decreasing supply uncertainty
Increasing number of new SKUs
Decreasing SKU cost - Answers decrease supply uncertainty
Cycle inventory is most closely associated with which of the following?
Unreliable suppliers
Demand growth
Order quantities
,In-transit inventory - Answers order quantities
Which of the following best describes ABC analysis?
ABC analysis helps you tailor ordering practices based on relative item values.
ABC analysis is a one size fits all approach to managing SKUs.
ABC analysis uses letters instead of numbers or names to identify SKUs.
ABC analysis requires the use of complex algorithms. - Answers ABC analysis helps you tailor ordering
practices based on relative item values.
Which of the following might be expected to be an 'A' item SKU at a university?
a ream of paper
a particular type of pen
a $30,000 vehicle
a computer monitor - Answers a $30,000 vehicle
Which of the following statements about 'A', 'B', and 'C' items is correct?
'A', 'B', and 'C' items are ordered with the same frequency.
The most valuable items are 'B' items.
'A' items are generally ordered in small quantities.
'C' items are tightly monitored. - Answers 'A" items are generally ordered in small quantities
ABC classification is based on which of the following?
value of item use relative to total value of items used
units of annual item use
item value
value of annual item use - Answers value of item use relative to total value of items used
There will generally be few ___ items and many ___ items.
'C', 'B'
'B', 'A'
'A', 'C'
, 'C', 'A' - Answers A, C
______ measures the ability to fulfil an order from inventory.
Inventory turnover
Fill rate
Days of supply
Stockout risk - Answers fill risk
Tracking your days of inventory supply can help you align production to market demand. However, it
provides no insight to help you manage risk.
TrueFalse - Answers false
If the average value of inventory is reduced, which of the following will go up?
inventory turnover
cycle service level
fill rate
cost of goods sold - Answers inventory turnover
If the annual cost of goods sold goes down by 10%, to maintain the same inventory turnover ratio, the
average value of inventory will need to increase by 10%.
true/false - Answers false
The ______ measures inventory relative to average demand.
days of inventory supply
fill rate
inventory turnover
cycle service level - Answers cycle service level
According to the EOQ model, what happens when your order quantity increases?
Total annual costs increase
Annual ordering costs increase
Average cycle inventory increases
