BCOR 350
BCOR 350 Final Exam Questions with
Verified Solutions Updated 2025 Graded A
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
1|Page
, BCOR 350
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
2|Page
BCOR 350 Final Exam Questions with
Verified Solutions Updated 2025 Graded A
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
1|Page
, BCOR 350
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
2|Page
