E-commerce Inventory Management and Demand Forecasting

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1. 1

   What is the primary purpose of assigning a unique SKU to each product variation?

   A To identify and track each variation separately B To determine the retail price automatically C To calculate the store's total revenue
2. 2

   A product sells 20 units per day, supplier lead time is 5 days, and safety stock is 30 units. What is its reorder point?

   

   A 100 units B 130 units C 150 units
3. 3

   What is the main function of safety stock?

   A To eliminate supplier lead times B To replace regular cycle inventory C To protect against unexpected demand or supply delays
4. 4

   In the illustrated ABC inventory chart, a small group of products generates most of the annual consumption value. How should that group be classified?

   

   A Class A B Class B C Class C
5. 5

   An online store received 200 units of a product and sold 150 during the period. What was the sell-through rate?

   

   A 50% B 75% C 80%
6. 6

   A retailer has annual cost of goods sold of $240,000 and average inventory at cost of $60,000. What is its inventory turnover?

   A 2 times B 3 times C 4 times
7. 7

   Which outcome is a direct risk of frequent stockouts for a popular e-commerce product?

   A Lost sales and reduced customer trust B Lower inventory carrying costs with no downside C Automatic improvement in forecast accuracy
8. 8

   What is cycle counting?

   

   A Replacing the full product catalog each season B Counting selected inventory subsets on a recurring schedule C Forecasting demand only once per year
9. 9

   What cost tradeoff does the economic order quantity model primarily seek to optimize?

   A Marketing costs versus customer acquisition costs B Product costs versus sales commissions C Ordering costs versus inventory holding costs
10. 10

    The illustrated sales history shows a large demand spike every November and December. Which forecasting element should receive special attention?

    

    A Seasonality B Random sampling C SKU numbering
11. 11

    Two forecasting models have mean absolute errors of 12 units and 27 units. Which model is generally more accurate?

    

    A The model with an error of 27 units B The model with an error of 12 units C They are equally accurate
12. 12

    What does it mean when an e-commerce retailer accepts a backorder?

    A The customer returns an unwanted product B The retailer permanently removes a product C The customer orders an unavailable item for later fulfillment
13. 13

    Which equation correctly calculates planned open-to-buy inventory at retail?

    A Planned sales + planned reductions + planned ending inventory − beginning inventory B Beginning inventory + planned sales − planned ending inventory C Planned sales − planned reductions − beginning inventory
14. 14

    How is gross margin return on inventory investment, or GMROI, calculated?

    A Net sales divided by marketing expenses B Gross margin divided by average inventory cost C Average inventory divided by gross margin
15. 15

    The diagram shows one inventory pool supplying a website, marketplace, and physical store. Which capability best prevents the same final unit from being sold twice?

    

    A Separate monthly spreadsheets for each channel B Manual inventory updates at the end of each week C Real-time centralized inventory synchronization
16. 16

    How should a retailer account for a product category with a consistently high return rate when forecasting inventory needs?

    A Estimate both gross demand and the timing and condition of returned units B Treat every return as immediately resalable inventory C Exclude returns because they do not affect stock availability
17. 17

    The inventory-aging dashboard shows many units with no sales for 180 days. What is the most appropriate initial commercial response?

    

    A Reorder the same quantity immediately B Use targeted markdowns, bundles, or liquidation C Increase safety stock for those units
18. 18

    If supplier lead time becomes more variable while demand remains unchanged, what inventory adjustment generally reduces stockout risk?

    

    A Reduce the reorder point B Eliminate all cycle inventory C Increase safety stock
19. 19

    What is the usual inventory tradeoff when an e-commerce retailer targets a higher product availability service level?

    A More safety stock and higher carrying costs B Less safety stock and more frequent stockouts C Lower carrying costs with no change in stockout risk