BUSI 411 UPDATED EXAM
QUESTIONS AND CORRECT
ANSWERS 2026 VERIFIED A+
◉ Two key questions of inventory.
Answer: How much and when
◉ Five points of inventory.
Answer: -Reliable forecast
-Knowledge of lead time and lead variability
-Carrying costs and ordering costs
-Accurate inventory counting system
-Classification system for inventory
◉ SKU vs UPC.
Answer: SKU: stockkeeping units (internal)
UPC: universal product code (external)
◉ ABC method of inventory.
Answer: -Divides inventory based on levels of demand
◉ Demand levels of A, B, and C.
Answer: A is high demand, B is moderate demand, and C is low demand
, ◉ How does A represent inventory VS annual dollar value.
Answer: A is 10-20% of inventory but 60-70% of annual dollar value
◉ Cycle count.
Answer: Continuously counting small, specific subsets of inventory
without halting operations (typically daily)
◉ Perpetual inventory.
Answer: -Uses software (POS/WMS) to track stock levels in real-time
-When there is a discrepancy between the physical count and the system
number, you have to record the loss
◉ Two-Bin Inventory.
Answer: SKUs are organized into two bins
◉ Periodic Inventory.
Answer: Updated periodically (ex. paper records updated at the end of a
day)
◉ Fixed Order Interval (FOI).
Answer: Replenish a certain number of days every time (ex. reorder
every 30 days no matter what)
◉ TPS.
QUESTIONS AND CORRECT
ANSWERS 2026 VERIFIED A+
◉ Two key questions of inventory.
Answer: How much and when
◉ Five points of inventory.
Answer: -Reliable forecast
-Knowledge of lead time and lead variability
-Carrying costs and ordering costs
-Accurate inventory counting system
-Classification system for inventory
◉ SKU vs UPC.
Answer: SKU: stockkeeping units (internal)
UPC: universal product code (external)
◉ ABC method of inventory.
Answer: -Divides inventory based on levels of demand
◉ Demand levels of A, B, and C.
Answer: A is high demand, B is moderate demand, and C is low demand
, ◉ How does A represent inventory VS annual dollar value.
Answer: A is 10-20% of inventory but 60-70% of annual dollar value
◉ Cycle count.
Answer: Continuously counting small, specific subsets of inventory
without halting operations (typically daily)
◉ Perpetual inventory.
Answer: -Uses software (POS/WMS) to track stock levels in real-time
-When there is a discrepancy between the physical count and the system
number, you have to record the loss
◉ Two-Bin Inventory.
Answer: SKUs are organized into two bins
◉ Periodic Inventory.
Answer: Updated periodically (ex. paper records updated at the end of a
day)
◉ Fixed Order Interval (FOI).
Answer: Replenish a certain number of days every time (ex. reorder
every 30 days no matter what)
◉ TPS.
