Practice Test Geeks(APICS) American Production and Inventory Control Society Certified Practice Test
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Demand Management Flashcards

7 cards from real APICS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which type of forecasting relies on the opinions of executives, sales staff, or customers rather than historical data?

    Answer: Qualitative forecasting

    Qualitative forecasting methods, such as the Delphi method or market research, use human judgment and expert opinion when historical data is unavailable or insufficient.

  2. A demand planner notices that sales of sunscreen spike every summer. This is an example of which demand pattern?

    Answer: Seasonal

    Seasonality refers to predictable, repeating demand fluctuations tied to the time of year or calendar events.

  3. What does Mean Absolute Deviation (MAD) measure in demand forecasting?

    Answer: The average of absolute differences between forecasted and actual demand

    MAD averages the absolute values of forecast errors, providing a straightforward measure of forecast accuracy in the same units as demand.

  4. In which scenario would a company most likely use a 'make-to-stock' demand fulfillment strategy?

    Answer: Standard consumer goods with short customer tolerance times

    Make-to-stock is used when products are standardized and customers expect immediate availability, so goods are produced in anticipation of demand.

  5. Which term describes the practice of withholding customer orders to ship in a subsequent period to meet a sales quota?

    Answer: Channel stuffing

    Channel stuffing involves artificially inflating sales by pushing excess product to distributors or retailers, distorting true demand signals.

  6. What is the role of 'point of sale (POS) data' in demand management?

    Answer: It provides real-time actual consumer purchase data to improve forecast accuracy

    POS data captures actual end-consumer purchases, enabling demand planners to build forecasts from real consumption rather than distributor orders.

  7. Which demand management concept involves classifying products by their demand variability and volume to determine appropriate planning approaches?

    Answer: XYZ analysis

    XYZ analysis categorizes items by demand variability (X=stable, Y=variable, Z=highly irregular) to tailor forecasting and replenishment strategies.