MGSC 395 FINAL EXAM QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
Demand Management - ANS Process of changing demand patterns using one or more
demand options
Demand Management Options - ANS Complementary Products*, Promotional Pricing,
Prescheduled Appointments, Reservations, Revenue Management, Backlogs,
Backorders/Stockouts
Demand Management Given Test Question: - ANS Oasis Outdoor is Spring/Summer,
Peppermint Forest Christmas Shop is Fall/Winter
Independent and dependent variables: - ANS Dependent variable (y) is predicted for given
values of the Independent variable (x)
Linear regression - ANS A special case that assumes the relationship between the variables
can be explained with a straight line
Coefficient of determination (r^2) - ANS Measures the amount of variation in the dependent
variable about its mean that is explained by the regression line
Range from 0.00-1.00
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, MAPE - ANS Mean Absolute Percent Error: Relates forecast error to level of demand - useful
for putting forecast performance in the proper perspective
MAPE Variables - ANS Numerator: (sum of (|error|/sales demand))*100
Denominator: n=# of periods
Forecast Error Variables - ANS Forecast error for period = Actual demand for period - forecast
for period
MAD - ANS Mean Absolute Deviation
MAD Variables - ANS Numerator: Sum of |forecast error|
Denominator: # of periods
ABC Analysis - ANS Process of dividing SKUs into their classes according to their dollar usage,
so managers can focus on items that have the highest dollar value
Closely related to Pareto analysis
SKU - ANS Stock-keeping-unit: individual item or product that has an identifying code held in
inventory
What makes up an ABC Analysis? - ANS Class A: High Value - 20% of SKUS, 80% of $ value
Class B: Moderate (15%) - 30% of SKUS, 15% of $ value
Class C: Low (5%)- 50% of SKUS, 5% of $ value
EOQ or Q - ANS Economic Order Quantity: The lot size, Q, that minimizes total annual
inventory holding and ordering costs
EOQ Assumptions - ANS 1. The demand rate is constant and known with certainty.
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
Demand Management - ANS Process of changing demand patterns using one or more
demand options
Demand Management Options - ANS Complementary Products*, Promotional Pricing,
Prescheduled Appointments, Reservations, Revenue Management, Backlogs,
Backorders/Stockouts
Demand Management Given Test Question: - ANS Oasis Outdoor is Spring/Summer,
Peppermint Forest Christmas Shop is Fall/Winter
Independent and dependent variables: - ANS Dependent variable (y) is predicted for given
values of the Independent variable (x)
Linear regression - ANS A special case that assumes the relationship between the variables
can be explained with a straight line
Coefficient of determination (r^2) - ANS Measures the amount of variation in the dependent
variable about its mean that is explained by the regression line
Range from 0.00-1.00
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, MAPE - ANS Mean Absolute Percent Error: Relates forecast error to level of demand - useful
for putting forecast performance in the proper perspective
MAPE Variables - ANS Numerator: (sum of (|error|/sales demand))*100
Denominator: n=# of periods
Forecast Error Variables - ANS Forecast error for period = Actual demand for period - forecast
for period
MAD - ANS Mean Absolute Deviation
MAD Variables - ANS Numerator: Sum of |forecast error|
Denominator: # of periods
ABC Analysis - ANS Process of dividing SKUs into their classes according to their dollar usage,
so managers can focus on items that have the highest dollar value
Closely related to Pareto analysis
SKU - ANS Stock-keeping-unit: individual item or product that has an identifying code held in
inventory
What makes up an ABC Analysis? - ANS Class A: High Value - 20% of SKUS, 80% of $ value
Class B: Moderate (15%) - 30% of SKUS, 15% of $ value
Class C: Low (5%)- 50% of SKUS, 5% of $ value
EOQ or Q - ANS Economic Order Quantity: The lot size, Q, that minimizes total annual
inventory holding and ordering costs
EOQ Assumptions - ANS 1. The demand rate is constant and known with certainty.
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
