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