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. What is 'demand sensing' in modern supply chain management?

    Answer: Applying machine learning to short-term demand signals for near-real-time forecasting

    Demand sensing uses high-frequency data such as POS, shipments, and orders to generate highly accurate short-horizon demand signals using advanced analytics.

  2. A forecast shows 1,000 units but actual demand is 1,200 units. What is the forecast bias in this scenario?

    Answer: The forecast is negatively biased (under-forecast)

    When actual demand consistently exceeds the forecast, the model has a negative bias, meaning it systematically under-predicts demand.

  3. Which action helps reduce the 'bullwhip effect' in a supply chain?

    Answer: Sharing point-of-sale data across all supply chain tiers

    Sharing downstream demand data with upstream partners reduces order variability amplification by aligning all tiers to actual consumer demand.

  4. In the context of APICS, what is a 'demand plan'?

    Answer: A projection of expected future customer demand used to drive supply planning

    A demand plan is a forward-looking projection of anticipated customer demand used as input to supply, production, and inventory planning processes.

  5. Which of the following is a key output of the demand management process?

    Answer: Unconstrained demand forecast

    The unconstrained demand forecast captures what customers are expected to demand independent of supply limitations, serving as the baseline for S&OP.

  6. A company implements vendor-managed inventory (VMI). How does this affect demand visibility?

    Answer: It gives the supplier direct access to customer inventory and consumption data

    VMI provides suppliers with real-time access to customer inventory levels and consumption rates, dramatically improving demand visibility and replenishment accuracy.

  7. What does 'forecast consumption' mean in a master scheduling context?

    Answer: Reducing the forecast by the amount of actual customer orders received

    Forecast consumption (also called forecast netting) replaces forecasted demand with actual customer orders as they arrive, preventing double-counting in the master schedule.