BCOR 360 FINAL EXAM QUESTIONS AND ANSWERS ALREADY PASSED
Business forecasting is the process of using _____________, _____________, ____________, and
experience to make predictions and respond to various business needs. - Answers b. Analytics,
data, insights
A forecast error is - Answers c. The difference between what you predict and what actually
happens.
Almost every decision you make in business is based on a forecast. - Answers True
If your product is relatively new and your data is limited, your best option is to... - Answers 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. - Answers d.
Forecasting technique
Inventory strategy should - Answers Depend on a company's competitive goals.
Factors that tend to reduce the need for inventory include - Answers Decreasing supply
uncertainty.
Inventory performance can be improved by - Answers Using forecasting effectively.
Cycle inventory is most closely associate with - Answers Order quantities
Reasons to keep inventory include - Answers Responding to uncertain demand.
Cycle Service Level is measured in terms of - Answers Probability of meeting demand.
______ measures the ability to meet demand from inventory. - Answers Fill Rate
If the average value of inventory is reduced, _____ will go up. - Answers Inventory Turnover
Which of the following might be expected to be an 'A' class SKU at a university? - Answers A
$5,000 microscope.
ABC analysis - Answers 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 - Answers 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 - Answers 76
, According to the EOQ model, as order quantity increases - Answers Average cycle inventory
increases.
The most effective way to reduce the value of the EOQ is to - Answers 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) - Answers 500
Which of the following is a good reason to carry inventory? - Answers e. All of the above
Carrying too much inventory or the wrong inventory can lead to which of he following? - Answers
f. A, B, & C only
Which of the following is not a commonly used metric used to evaluate inventory performance?
- Answers c. Cash-to-cash cycle time
Inventory Turnover is defined as Current Inventory/Average Daily Usage. - Answers 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. - Answers False
Which of the following is the most effective and productive way to reduce the optimal order
quantity (Q)? - Answers 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? - Answers 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? - Answers a. The annual number of
order placements will be 8, and average inventory levels will be 1,500
If your EOQ is 60 and the associated total cost is G(Q)=$4,200. What will be the total cost if your
use an order quantity of 40 (rather than the EOQ)? - Answers d. More than $4,200
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%, what is your reorder point?
- Answers c. 76
In order for a company to win the "first moment of truth" it needs to have the right _______ at the
right _______ at the right _______ at the lowest possible _______. - Answers product, place, time,
cost
S&OP is used to bring the customer-facing and supply-facing sides of your company together to
get everyone to agree to which of the following? - Answers Only A and B (A. The nature of the
business environment
b. A single forecast)
Business forecasting is the process of using _____________, _____________, ____________, and
experience to make predictions and respond to various business needs. - Answers b. Analytics,
data, insights
A forecast error is - Answers c. The difference between what you predict and what actually
happens.
Almost every decision you make in business is based on a forecast. - Answers True
If your product is relatively new and your data is limited, your best option is to... - Answers 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. - Answers d.
Forecasting technique
Inventory strategy should - Answers Depend on a company's competitive goals.
Factors that tend to reduce the need for inventory include - Answers Decreasing supply
uncertainty.
Inventory performance can be improved by - Answers Using forecasting effectively.
Cycle inventory is most closely associate with - Answers Order quantities
Reasons to keep inventory include - Answers Responding to uncertain demand.
Cycle Service Level is measured in terms of - Answers Probability of meeting demand.
______ measures the ability to meet demand from inventory. - Answers Fill Rate
If the average value of inventory is reduced, _____ will go up. - Answers Inventory Turnover
Which of the following might be expected to be an 'A' class SKU at a university? - Answers A
$5,000 microscope.
ABC analysis - Answers 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 - Answers 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 - Answers 76
, According to the EOQ model, as order quantity increases - Answers Average cycle inventory
increases.
The most effective way to reduce the value of the EOQ is to - Answers 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) - Answers 500
Which of the following is a good reason to carry inventory? - Answers e. All of the above
Carrying too much inventory or the wrong inventory can lead to which of he following? - Answers
f. A, B, & C only
Which of the following is not a commonly used metric used to evaluate inventory performance?
- Answers c. Cash-to-cash cycle time
Inventory Turnover is defined as Current Inventory/Average Daily Usage. - Answers 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. - Answers False
Which of the following is the most effective and productive way to reduce the optimal order
quantity (Q)? - Answers 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? - Answers 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? - Answers a. The annual number of
order placements will be 8, and average inventory levels will be 1,500
If your EOQ is 60 and the associated total cost is G(Q)=$4,200. What will be the total cost if your
use an order quantity of 40 (rather than the EOQ)? - Answers d. More than $4,200
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%, what is your reorder point?
- Answers c. 76
In order for a company to win the "first moment of truth" it needs to have the right _______ at the
right _______ at the right _______ at the lowest possible _______. - Answers product, place, time,
cost
S&OP is used to bring the customer-facing and supply-facing sides of your company together to
get everyone to agree to which of the following? - Answers Only A and B (A. The nature of the
business environment
b. A single forecast)
